INDIA IS NOW THE TOP GOLD JEWELLERY MAKER
India has surpassed Italy and is now officially the largest gold jewellery producer in the world. Confirming the development, Federazione Nazionale Orafi Gioiellieri Fabbricanti Aderente a Confindustria or Federorafi which is the federation of ltalian Jewellers said that India has relegated Italy to second place in gold jewellery production.
India surpassed Italy in gold jewellery production due to â€œcompetitive production costs, better access to international markets due to lower customs tariffs, good product quality and a huge â€œinternal marketâ€?, which is not accessible to Italian / European goods due to high tariffs and administrative barriers.
According to data released by the GFM precious metal consultancy, GFMS Limited, India with gold jewellery production of 539 tons in 2005 was numero uno followed by Italy with 228 tons. The tird spot went to China with 198 tons and Turkey was fourth with 197 tons. If scrap gold is included as part of production, India also emerged as number one.
Italy lost out due to high labor costs, absence of trade reciprocity from other countries, towards non-organization for Economic Co-operation and Development countries (India, China and South America amongst others), high rate of exchange of the euro compared to other currencies and difficulty in checking the distribution of goods.
It is commendable that Indian gold jewellery design standards are improving. The Indian jewellery designs had already reached high standards and are recognizable all the world over. Italian gold jewellery has a reputation of producing sophisticated design. For many years floral designs of Indian jewellery did not attract too many international customers. But that is now slowly changing and Indian gold jewellery designers are making a name for themselves.
Fefderorafi further added that unless there were sharp changes in the gold price and in the euro / $ exchange rate, Italian gold jewellery was unlikely to regain at least a part of the market share that it has lost in the last few years.