Demand for gold and diamonds helped to push India's exports of gems and jewellery up by nearly 22% in 2002.
Sanjay Kothari, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), said that exports rose to 4,214bn rupees ($8.7n; £5.5bn) from 3,345bn rupees the previous year.
He said the diamond sector displayed substantial growth in dollar terms with shipments of diamonds worth $6.89 billion.
Mr Kothari told the BBC's World Business Report that good marketing and cheaper labour costs had been responsible for the impressive performance.
Beyond the USA
"If you compare what we have done to the figures of Israel and Belgium - because of the high expenses there they are not able to match the low level of cost and the hard-working Indian people," he said.
Exporters have traditionally concentrated on the United States but Mr Kothari said things were now changing:
"Apart from the USA we are looking at the European and Middle East markets," he said.
Mr Kothari predicted that India's 2003 gem and jewellery
exports would exceed last year's by about 10%.
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