gems & Jewellery

The Indian gems and jewellery industry is one of the fastest growing segments in the Indian economy with an annual growth rate of approximately 15 per cent. With exports of over US$ 20 billion in 2007-08, the gems and jewellery sector accounts for nearly 13 per cent of India's total exports.
According to an ASSOCHAM report released in 2007, the gems and jewellery industry employs over 1.3 million people, directly or indirectly. The report further states that worldwide, the industry is estimated to be around US$ 130 billion, while the Indian gems and jewellery market in 2006-07 was approximately worth US$ 13.5 billion.
Advantage India
India is already the largest diamond cutting and polishing centre in the world—the Indian diamond cutting and polishing industry enjoys 60 per cent value share, 82 per cent carat share and 95 per cent share of the world market in terms of number of pieces. In other words, nearly 9 out of 10 diamonds sold worldwide are cut and polished in India.
But now, thanks to positive government policies such as 100 per cent Foreign Direct Investment (FDI) in gems and jewellery through the automatic route, India is on the verge of becoming the focal point of the global gems and jewellery industry.
Total gems and jewellery exports from India stood at US$ 20.88 billion for 2007-08, a growth of 22.27 per cent over US$ 17.08 billion the previous year, as per the Gems and Jewellery Export Promotion Council (GJEPC).
The United States and Hong Kong were the largest importers of gems and jewellery from India, with a share of 26 per cent each, followed by UAE at 21 per cent.
Gold jewellery exports increased from US$ 5.2 billion in 2006-07 to US$ 5.6 billion 2007-08.
The domestic market for gems and jewellery is likely to increase to US$ 20 billion by 2010 and US$ 30 billion by 2015.
India is the largest consumer of gold in the world, followed by China and Japan. India consumes nearly 800 tonnes of gold that accounts for 20 per cent of world gold consumption, of which nearly 600 tonnes go into making jewellery.
India is also emerging as the world's largest trading centre for gold targeting US$ 16 billion by 2010.
Branded jewellery is likely to be the fastest-growing segment in domestic sales. The sector is expected to grow at 40 per cent annually to touch US$ 2.2 billion by 2010.
The Indian diamond jewellery industry is the third largest consumer of polished diamonds after USA and Japan. Diamond jewellery consumption is likely to jump to nearly 80 per cent in 2010 and over 95 per cent between 2010 and 2015.
Indian industry has the best skilled manpower for designing and producing high volumes of exquisite jewellery at low labour costs.
The export industry mainly comprises of small-to-large units based in various special economic zones (SEZs), export processing zones (EPZs) in Chennai and Noida and Santacruz Electronics Exports Processing Zone (SEEPZ) in Mumbai, supplying primarily diamond-studded jewellery. More SEZs are on the anvil.
The Indian gems and jewellery industry has been gaining prominence as an international sourcing destination for high quality designer jewellery. International stores such as Walmart and JC Penney are increasingly procuring jewellery from India.
Diamonds
India has a long history of diamond mining and several diamonds, including the Kohinoor, were produced here. In fact, till 1725, India was the only producer of diamonds in the world. The Golconda mines were world-famous and even today, a Golconda diamond fetches a very high price in the international market.