Hong Kong hopes to treble trade with India to $50 billion in 6 years

Mumbai: The Hong Kong Government intends to take the bilateral trade with India to $50 billion in the next six years from $17 billion at present.

Hong Kong has emerged as the major trading hub for the Indian gem and jewellery industry after the US. Hong Kong would like to replicate the jewellery industry’s success to other sectors such as information technology, home textiles, gift items and food industry.

Export market
India has become the fourth largest export market for Hong Kong, with export to India touching $8 billion in the first nine months of 2013, while India’s export to the country was at $8.8 billion. India was the seventh largest sourcing destination for Hong Kong.

Speaking to the media, Benjamin Chau, Deputy Executive Director Hong Kong Trade Development Council, said Indian jewellers are already tapping Dubai and the Hong Kong markets to circumvent the prolonged sluggish demand in the US.

Though Indian gems and jewellery exports have slowed down in the last few months, due to the various measures implemented by the Government, the sector constitutes about 19 per cent of the total exports from India. The Indian gold jewellery market is growing at 15 per cent per annum and the diamond jewellery market at 27 per cent per annum.

Rising CAD
Concerned over rising current account deficit due to large scale gold imports, the Government had progressively hiked import duty to 10 per cent and had made it mandatory for gold importers to export 80 per cent of the gold consignment before placing fresh orders for gold import.