New Delhi, October 9:

India’s exports of gold jewellery are likely to cross $5 billion this fiscal, up from $3.8 billion in 2004-05, and the government accords ‘extreme focus’ to the industry, commerce minister Kamal Nath said today.

“Gold jewellery is an extreme focus product for the government. Utmost efforts have been made to increase exports of gold jewellery, both plain and studded,” the minister said while inaugurating a seven-day long gold exhibition here.

“India is also forward integrating into manufacturing studded jewellery,” Kamal Nath told ‘Festival of Gold 2005’ — the seventh such exhibition-cum-sale event organised by MMTC Ltd, the state-run trading arm of the government.

The minister said the sector had been neglected in the past and needed to move more towards exports, noting that a medium-term strategy evolved by the government for the gold jewellery industry had several components. Among them was the hallmarking of jewellery to develop the Indian brand in the global jewellery market, integration of the supply chain, joint ventures with leading suppliers, and developing intelligence on key markets.

A committee has also been constituted to examine the gold industry’s regulatory structure and to recommend policy measures to develop India as a gold manufacturing and trading hub, Kamal Nath said.

The liberalisation of gold imports will help make India a global hub for manufacturing gold products, while the establishment of a gold trading centre will generate revenues, increase employment and stabilise the trade, he said.

“Approximately three million artisans and goldsmiths are currently employed in the gold jewellery sector,” the minister said, adding the sector accounts for around 18 per cent of India’s total gems and jewellery exports.

Some highlights of the seven-day long exhibition include certified products in gold, silver, platinum and coloured and white gold besides a kaleidoscope of ethnic and new designs by craftsmen from across the country.

Meanwhile, banking on its finely crafted gold jewellery and silverware, India’s largest bullion trader is eyeing success from a the gold festival followed by similar meets in Kuwait and Saudi Arabia.

“Despite the high price of gold this year, which has crossed Rs 6,800 Indian Currency (IC) per 10 grams against around Rs 6,300 IC per 10 grams at this time last year, there is no let up in demand,” said S D Kapoor, chairman and managing director of MMTC Ltd, “Our Festival of Gold, opening its seventh edition in (New) Delhi tomorrow, has become a big draw not only here but in other cities and even overseas.”

With gemologists, astrologers and palmists adding colour, the Festival of Gold last year netted sales of over $3.6 million. This year, MMTC is targeting $4.5 million sales during the show that lasts till October 16.

In each of the exhibitions, over 50,000 pieces of jewellery including diamond and precious stones-studded pieces are put on display to woo all income groups.