SECTORS AT THE INDIA PAVILION

Gems & Jewelry

BE DAZZLED
India Is The Fifth Largest Exporter Of Gems And Jewelry In The World

Constitutes 29% of the global market

Exports 75% of the world’s polished diamonds

Home to more than 300,000 gems and jewellery players

Employs over 4.64 million people

With a demand for 690.4 tonnes, India is the largest consumer of gold in the world

Makes for 7% of its GDP

Comprises 15% of the total merchandise export

Market size of this sector to reach US$ 100 billion by 2025

Export stood at US$ 24.41 and US$ 29.01 billion in 2020

Reach US$ 80 billion in jewellery export by 2025

Exports of cut and polished diamonds, gold jewellery and silver jewellery has seen growth of 10.2%, 1.9% and 35.9% respectively.

Home to more than 300,000 gems and jewellery players, the Indian gems and jewellery sector employs over 4.64 million people. This number is expected to reach 8.23 million in a market that is primarily export-oriented and labour-intensive.

In FY20, India’s import and export of gems and jewellery stood at US$ 24.41 and US$ 29.01 billion respectively. The Government of India is aiming at US$ 80 billion in jewellery export by 2025.

Gems and jewellery manufacturers in India are more focused than before on developing new and innovative offerings by using computer-aided design (CAD), rapid prototyping (RP) and incorporating 3D printing in jewellery. With internet platforms having been launched by various major players offering almost all of their product ranges, online sales are expected to account for 1–2% of the fine jewellery segment by 2021–22.

Owing to the immense potential for growth and value addition of the Gems and Jewellery sector, the Government has declared it as a focus area for export promotion. Various measures have been recently undertaken by the government to promote investment, upgrade technology and develop necessary skills among the workforce to promote ‘Brand India’ in the international market. In this regard, some significant developments in the sector include:

  • The Government of India has permitted 100% Foreign Direct Investment (FDI) in the Gems and Jewellery sector under the automatic route.
  • The cumulative Foreign Direct Investment (FDI) inflow in diamond and gold ornaments in the period between April 2000 and March 2020 was US$ 1.17 billion.
  • Hallmarking of Gold Jewellery and Artefacts has been made mandatory w.e.f January 2021. As per the Union Budget 2019-20, the GST rate was reduced from 18 percent to 5 percent for services by way of job work in relation to gems and jewellery.
  • There are five established centres of the Indian Institute of Gem & Jewellery (IIGJ) in Varanasi, Mumbai, New Delhi, Jaipur and Kolkata. These centres offer several courses in Jewellery Design, Manufacturing & CAD with emphasis on the job training.
  • An exclusive online job portal for the gems & jewellery sector has been set up to bridge the gap between employers and the employees in the industry.
  • Brands like PC Jewellers, PNG Jewellers and Popley and Sons are also working on introducing virtual reality (VR) experiences for their customers.
  • US$ 2.09 billion have been invested in India’s largest jewellery park at Ghansoli in Navi-Mumbai. The facility is spread across 25 acres of land with a capacity of more than 5000 jewellery units of various sizes ranging from 500–10,000 square feet.

With a demand of 690.4 tonnes, India is the largest consumer of gold in the world. Gold Monetisation Schemes have enabled individuals, trusts and mutual funds to deposit gold with banks and earn interest on the same in return.

 

India is the world’s largest centre for cut and polished diamonds and exports 75% of the world’s polished diamonds. 14 out of the 15 diamonds sold in the world are either polished or cut in India.

The diamond workforce consists of talented craftsmen who are trained in superior practices of cutting and polishing fine diamonds and precious stones. The exports of cut and polished diamonds, gold jewellery and silver jewellery have registered a growth of 10.2%, 1.9% and 35.9% respectively.

A Special Notified Zone (SNZ) was set up at Bharat Diamond Bourse in Mumbai in 2015 to ensure the regular availability of the direct supply of rough diamonds in the country.

Embellished by multiple factors like rapid innovation, rising income levels and strong institutional support, India’s Gems & Jewellery Industry stares at a dazzling future, the glimpse of which may be caught at the World Expo 2020, Dubai.