Bangkok, Thailand (December 09, 2010) – The Thai Gem and Jewelry Traders Association (TGJTA) last week successfully established the association’s first distribution center (DC) in Mumbai, one of the fastest growing business center in the world, ahead of all other Thai industries.
The Thai Gem and Jewelry Trader Association Distribution Center (TGJTA DC) occupies more than 200 sq. m. of beautifully decorated prime arcade area of the Akruti Center in the center of Mumbai. Attending the launch of the TGJTA DC are Thai delegates who traveled to Mumbai from Bangkok. They included TGJTA President, Mr. Vichai Assarasakorn, Bangkok Gems and Jewelry Fair (BGJF) CEO, Mr. Somchai Phornchindarak, and several senior officials of the Department of Export Promotion (DEP) of the Ministry of Commerce.
According to BGJF CEO Mr. Somchai Phornchindarak, the inauguration of the TGJTA DC is considered a small step in many of the TGJTA that may prove to be a giant leap forward for the Thai gems and jewelry industry and potentially other industries as well.
India is one of the fastest growing economies today and rivals only China. For the first 10 months of 2010, India’s economy is growing at record speed and projects its gross domestic product (GDP) to expand at more than 9% by the end of the 2010 fiscal year. However, the unique difference between the two economic giants is that China’s growth is spurted with exports while India’s economic surge is largely contributed to the extremely large domestic consumption. And this difference, states Mr. Somchai, that shall prove be extremely beneficial to the Thai gems and jewelry industry as traditional buyers from the US or Europe now suffers from the global economic downturn that originated in the US in 2008.
“This is a big step forward for the Thai gems and jewelry industry because we now have a strong foothold in one of the most exciting commercial city in the world,” said Mr. Somchai. “Mumbai is one of the richest cities in India in terms of business and consumption and now Thai gems and jewelry products have a strong permanent outlet to this exciting market.”
The TGJTA DC is a first class product showcase center that benefits the Thai gems and jewelry industry and Thailand as a whole in a multi-tiered fashion. Firstly, consumers will be able to make direct purchases or places orders for fine gemstones or jewelry that are made by master Thai craftsmen. Additionally, Indian gems and jewelry businesses will be able to place orders and deal directly with Thai companies in a convenient way. It will boost the exports of Thai gems and jewelry products as well as promote the skills of Thai gems and jewelry producers under the campaign of the TGJTA to make Thailand known as the “World’s Gems and Jewelry Hub” by 2014.
According to Mr. Somchai, the TGJTA has wanted to have a presence in India, especially Mumbai for several years, but extreme high costs were prohibitive. The TGJTA DC project only became a reality this year only through the successful negotiations of Mr. Atul Jogani, Vice President of the TGJTA with the Akruti Group.
“Mr. Jogani was able to convince the Akruti Group with the benefits of showcasing Thai gems and jewelry and we were given the 200 sq. m. fully furnished space in a prime Mumbai location without costs,” said Mr. Somchai. “The Akruti Center would benefit from profit sharing with all sales of Thai gems and jewelry at the DC.”
“That means they are highly confident of the capacity and potential of gems and jewelry from Thailand,” he added.
The launch of the TGJTA DC also serves in another potentially great future step when the ASEAN – India FTA framework is fully enacted by 2015 for both Thailand and India.
“India and ASEAN countries signed the Free Trade Agreement last year while India and Thailand has an enforced FTA agreement for 82 products,” said Mr. Somchai. “Several items in the gems and jewelry category enjoy tax benefits.”
“In the future, when the India – ASEAN FTA is implemented full swing, both countries will be able to increase trade significantly while the DEP of the Thai Ministry of Commerce is supporting the TGJTA to help reduce several trade obstacles in form of regulations and procedures which will greatly help facilitate the increase of trade between Thailand and India, especially in the gems and jewelry industry.”
Mr. Somchai also added that under the FTA arrangements, Thailand poses as a great springboard nation for Indian businesses to introduce their products to other ASEAN countries.
Contact: Ms Nisarat Suebsantiwongs
[email protected]
(6681) 8192606
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