Something significant happened at this year’s India International Jewellery Show (IIJS). The gem and jewellery industries from India and many other countries around the world found a life of their own apart from the United States, the world’s largest jewellery market.

I knew before the IIJS began that the domestic Indian jewellery market was going through an unprecedented boom. My market sources had all told me that they expected this year’s Diwali festival sales season to be an extremely good one. But they also worriedly told me that the sub-prime mortgage market meltdown in the US and the shadow of a credit crisis that it threw could still mean trouble for the Indian industry, which has millions of dollars worth of goods in the US on long-term credit. The report of a big financial failure in the US had all of them mopping their brows. This could well jinx the IIJS they said.

But nobody seemed to be paying attention to the US at the IIJS. The buyers came in droves and they bought like there was no tomorrow. Some exhibitors joked that they didn’t want to come to the show for the last two days because they had got so many orders over the first three days, they had actually exceeded their entire annual production capacity!

I have to tell you though that my market sources don’t think it is quite party time yet. They think Diwali will be a booming success alright. But they still think many exporters won’t be able to stay in business till then. But they all agree that a turning point has been reached. As of today, the Indian industry will increasingly gauge its health from the state of the domestic market and the new markets around the world that are experiencing affluence – and the joys of spending!