As the government has plans to diversify export basket, gold jewellery exports can become a major earning sector after readymade garments if export-oriented policies are devised, said industry insiders.
In reply to a query about why the country lags behind in gold jewellery export, Bangladesh Jewellers Association (BAJUS) vice president Masudur Rahman said, “There is lack of willingness and support to tap export potential. The government has to give us support to grab the global market.”
“Despite having no gold resources in our country, we can earn a significant amount of foreign exchange by exporting gold jewellery,” he added.
Dilip Kumar Agarwala, former general secretary of BAJUS, said that Bangladesh is not on the list of gold jewellery exporting countries due to lack of proper steps, although the country has enormous potential.
“India is the third largest exporter of jewellery items in the world. Gold ornaments are also exported from Sri Lanka, Nepal and Pakistan but not from Bangladesh. So, an export-friendly gold policy is required,” he added.
The global jewellery market, valued at $350 billion, is largely driven by gold ornaments. Bangladesh, with its skilled goldsmiths, produces handmade gold jewellery that has demand at home and abroad. Tapping into even a small portion of this market could significantly boost the country's economy.
According to Grand View Research, the global gold market size is on an upward trajectory. By the end of this year, it is projected to reach $366.79 billion, up from $353.26 billion last year.
The market is expected to grow at an average annual rate of 4.7 percent, reaching $482.22 billion by 2030.
Despite its potential, Bangladesh did not rank in the top 100 gold exporting countries in 2022, according to the World Gold Council. The top five countries--China, Switzerland, India, Hong Kong, and Italy--account for more than half (53.3 percent) of the world's gold jewellery exports.
Ahsan H. Mansoor, Executive Director at Policy Research Institute, in his research showed that while the global gold market is expanding, few countries export gold ornaments. Bangladesh, with its skilled artisans, has potential to establish a significant presence in this market.
Bangladesh had no clear policy to promote the jewellery industry and provide legal channels for sourcing gold and precious stones.
But formulation of Gold Policy 2018 and Gold Policy 2021 (amended) has begun to address these issues. The policy was amended to pave the way for import of unrefined gold ore, semi-refined gold and setting up of refineries.
The BAJUS data reveals that from 2022 to 2021, Bangladesh has recorded a negative trade balance in gold, importing more than its exports. To meet the local demand, BAJUS said that an import-oriented policy could generate up to Tk 10,000 crore revenue for the government.
BAJUS also highlighted the issue of gold smuggling, particularly through the borders of 30 districts adjacent to India. Districts such as Meherpur, Kushtia, and Satkhira have become key routes for smuggling gold into India.
BAJUS estimates that illegal gold and jewellery worth Tk 250 crore are smuggled every day, totalling around Tk 91,250 crore annually, using the hard-earned foreign currency of migrant workers.
Bashundhara Group Managing Director (MD) Sayem Sobhan Anvir earlier termed the jewellery sector as the future of Bangladesh. He sought help from National Board of Revenue and Finance Ministry to stop gold smuggling.
“A separate space for gold export processing zone with 10 years duty-free facility can boost earnings and take the industry on its right track,” he added.
Ahsan H. Mansoor has identified several reasons for the decline in jewellery exports such as absence of duty-free import of jewellery inputs, lack of legal documentation, no access to start-up capital, lack of training institutions for new artisans and gold refinery.
“To explore its potential in the global jewellery market, Bangladesh must implement supportive policies and address these challenges, enabling its skilled goldsmiths to contribute significantly to the economy,” he said.
