This is the big news – and the big worry – in India right now. While the economy has grown at 9 per cent over the past year, inflation is today, raging at 8.1 per cent. Worse, the government concedes it can’t do very much to contain it as it is riding on the back of a consistent rise in global commodity prices.
So while the Indian gem and jewellery export production industry is looking at the domestic market to make up for what it has lost in the way of a market in the United States, global forces have barged in to shatter even those fond hopes.
While there is a substantial Indian contingent at the JCK Vegas show, many say they don’t really have high expectations of the US market and that if a rescue package is going to be formulated, it will have to involve the emerging markets, primarily the Middle East, India and China. The Middle East is still buying strongly, buoyed by high oil prices, but China is also waging a battle against inflation that threatens to run away out of control if tough measures aren’t taken. The Middle East is buying primarily high end goods and even with its strong showing, can’t begin to make up the sales numbers that are needed to shore up the industry. This is going to be a long, tough year for the global gem and jewellery industry…
