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GEMS AND JEWELRY SECTOR IN INDIA
EXECUTIVE SUMMARY
Gems and Jewellery have been a part of the Indian civilization since its recorded history, the significance of the gems and
Jewellery industry in the Indian economic scenario is a development of the last three or four decades. In 1966-67, the
export turnover of the Gems & Jewellery industry was just Rs 220 million representing a 3 per cent of total merchandise
exports. However, it has now grown to become one of the leading export oriented industries in India recording an export
turnover of around Rs 91617.53 Crores during 2008-09, making it a significant foreign exchange earner for the country.
The gems and jewellery sector, which has seen a substantial fall in exports since 2007 due to the withdrawal of a 6 per
cent duty concession under the Generalized System of Preferences on jewellery exports to the US, has been severely
affected by the economic meltdown.
As a result, Indias share of gems and jewellery exports to the US has come down from 36 per cent in 2006 to 20 per cent
in 2009.
The UAE was the largest importer of gems and jewellery from India in 2008-09, with a share of 31 per cent. This was
followed by Hong Kong with a 25 per cent and the US with 20 per cent. The gems and jewellery sector accounted for 13
per cent of Indias total merchandise exports.
During April 2009, the total gems and jewellery exports of the country was $1,144 million, as against $1,740 million during
the same period last fiscal, a fall of about 34 per cent.
INTRODUCTION
The gems and jewellery sector can be categorized into the following sub-sectors based on characteristics, processing
techniques, preciousness in terms of price range and marketability.
Gemstones - Diamonds and coloured stones (precious, semi-precious and synthetic)
Jewellery - Plain Gold, Studded, Silver, Costume
Pearls
The global market for gems and jewellery today is pegged at US$ 85 billion with key markets having registered an
average compounded annual growth rate (CAGR) of 5-10 per cent in the last decade.
The global market for Gold is estimated at 3300 tonnes. South Africa is the worlds largest producer of gold, followed by
U.S.A and Australia. Together, these countries account for 45 per cent of the worlds total gold production. India is the
largest consumer of gold, followed by the U.S.A.
In the production of Silver, the Americas have near monopoly - Mexico, Peru and the United States are the top three
silver producing countries. Platinum is an extremely rare precious metal. More than 90 per cent of all platinum supplies
come from South Africa and Russia. With increased economic development, the demand for the metal has grown at afaster pace than it is being mined. The United States is the worlds leading consumer of platinum overall, while China has
emerged as the leading consumer of platinum jewellery.
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Jewellery manufacturing is traditionally dominated by players from 3-4 countries.
Italy Hong Kong/China
Worlds largest producer of Produces a substantial
fine jewellery, with about portion of the world
8,200 factories annually jewellery market
producing an estimated
US$ 6.4 billion worth.
Italys strength lies in China and Hong Kong are
plain gold jewellery. strong in both gold and
studded jewellery
Thailand United States
Major global supplier of While a growing number of
quality jewellery over American manufacturers
the last two decades. export their goods around
the world, the sheer size of
Thailands strength is the domestic market keeps
in gemstone jewellery. a large portion of the goods
at home.
Over the years, global markets have been impacted by several developments like falling trade barriers, increasing
competition, changing customer preferences and developments in technology in several areas. The global jewellery
industry is being transformed by a few key trends such as:
Increasing competition among top producing countries.
Emergence of different materials different alloys within gold, as well as non-gold jewellery.
Emergence of new manufacturing techniques.
Requirement of stricter quality norms and hallmarking.
In this context, India is fast emerging as a leading destination for jewellery manufacturing in the world. The following
sections discuss Indias gems and jewellery sector in detail with a specific focus on the following areas:
Significance of India within the global gems and jewellery sector
The structure and current scenario of the sector in India
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Indias competitive advantages in the sector
Future outlook
INDIA AND GEMS AND JEWELLERY
India has been one of the most important countries for the production of Gems And Jewellery. One of the highlights is the
production of Studded Jewllery. Studded Jewellery trading in India is age old as it is established by the fact that in 1650
A.D., sources report the employment of more than 60,000 workers in the Eluru mines, where they dug and washed the
precious stones. Today though India has almost no raw Studded Jewllery left within her own soil still we produce 70% of
the World gems in terms of quantity and 45% in terms of value. India is the original country which discovered gems and
initiated gem craft. The gems produced here gave birth to a fabulous industry and global trade.
Looking at the evolution of the Indian Gold Market, India was never in dearth of Gold Reserves. History had been a
witness of the fact that India was always self sufficient in all its natural resources and more so in case of gold. It was this
abundance in availability of such precious metals that lured foreign invaders from all parts of the globe as well as from
time to time to come to India and plunder as much of it as was possible for them to do. However there were a significantnumber of such intruders who, after entering the country, fell for the land and its cultural heritage which eventually led
them to settle and establish their empire in India.
As an inevitable consequence of the lavish livelihood exhibited by the Indian rulers, the Gold reserves in India gradually
diminished. The arrival of the British in the hierarchy in the middle of the eighteenth century announced the decline of
India's Gold Reserves even further. The colonial status given to India by the British crippled the economy which once
boasted of its wealth in gold. Huge quantities of the precious metals were carried to England right after their extraction. As
a result a major proportion of India's Gold Reserves was 'vanishing' without even entering into the economy.
By the time India gained independence, a huge vacuum had already been created as far as Gold Reserves in India was
concerned. Slowly, after several decades have gone by India has finally started to fill up the vacuum in a big way. After
reaching a new height in the form of 8 % growth in Gross Domestic Product (GDP) for the year 2005-06, India is being
recognized as one of the fastest emerging economies of the world. India's growing prospects can also be noticed in the
gold market as well. India is viewed as the largest consumer of gold in recent times. According to the figures presented by
the estimates of the World Gold Council (WGC), India's total demand for gold in the year 2001 was 243.2 tonnes which
comprised 26.2 % of the total world demand.
Indian Gems and Jewellery Industry have achieved a premier position in the International market. Today India has been
recognized as a significant manufacturing exporting centre apart from its traditional strengths in handmade jewellery, the
country has niche for itself in machine made commercial jewellery arena. The export industry has come of age and is
now entering a new phase of development. Gearing up to achieve further growth, the industry has already captured a
55% share of world market by the turn of this century.
India is a primary source of imports for the developed countries, mainly because of abundant availability of skilled and
cheap labor, but now this no longer remains the competitive edge for India as heavy competition is faced by various
countries like China, Thailand and Sri Lanka. But at the same time, India has managed to keep its position healthy and
have brighter prospects ahead.
India is a leading player in the global gems and jewellery market
The gems and jewellery industry occupies an important position in the Indian economy. It is a leading foreign exchangeearner and also one of the fastest growing industries in the country.
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The role of GJEPC can be broadly classified under the following categories:
Trade Facilitator
The Council undertakes direct promotional activities like organizing joint participation in international jewellery shows,
sending and hosting trade delegations, and sustained image building exercises through advertisements abroad,
publications and audio-visuals. GJEPC also invites countries to explore areas of co-operation in supply of rough
diamonds and rough colored stones as well as offers co-operation in jewellery manufacturing. The Council regularly
communicates with Indian Embassies, trade bodies and associations in various countries. And finally, GJEPC also
organizes seminars, buyer-seller meets, symposiums.
Advisory Role
A crucial area of activity of the Council has also been aiding better interaction and understanding between the trade and
the government. The Council takes up relevant issues with government and agencies connected with exports and submit
documents for consideration and inclusion in the Exim Policy. The Council also grants membership, registration
certificates and performs other roles as per the Exim Policy.
Nodal Agency for Kimberly Process Certification Scheme
GJEPC works closely with the Government of India and the trade to implement and oversee the Kimberly Process
Certification Scheme. To that effect, the Council has been appointed as the Nodal Agency in India under the KimberlyProcess Certification Scheme.
Training and Research
The Gems & Jewellery Export Promotion Council runs a number of institutes that provide training in all aspects of
manufacture and design in Mumbai, Delhi, Surat and Jaipur. These training programs are being conducted to ensure that
the Indian industry achieves the highest levels of technical excellence.
Varied Interests
The Council also publishes a number of brochures, statistical booklets, trade directories and a bi-monthly magazine -Solitaire International, which is distributed internationally as well as to its members. Finally, the Council has also
developed its own promotional audiovisual film - 'India - Your First Choice', which is dubbed in various international
languages as well as screened at various trade shows.
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GEMS AND JEWELLERY OVERVIEW
Size
Large market for Gems & Jewellery with domestic sales of over $10 billion.
4% of the global Gems and Jewellery market.
Exports of over $15.5 billion; over 18% of Indias exports.
India is the largest consumer of gold jewellery in the world.
Accounts for about 20% of world consumption.
India is the largest diamond cutting and polishing center in the world.
60% value share, 85% volume share and 92% share of the world market by number of pieces.
Third largest consumer of polished diamonds after USA and Japan.
Structure
The Indian Gems & Jewellery industry is highly fragmented with a large number of domestic private sector companies.
A large portion of the market is in the unorganized sector.
India is gaining prominence as an international sourcing destination for high quality designer jewellery.
Wal-Mart, JC Penney etc. procure jewellery from India.
Policy
100% FD is permitted in the Gems & Jewellery sector through the automatic route.
SEZs and Gems and Jewellery Parks have been set up to promote investments in the sector.
Opportunity
India is one of the largest exporters of gems and jewellery. India is the diamond polishing capital of the world.
Outlook
India is the fastest-growing jewellery market in the world.
Branded jewellery likely to be the fastest-growing segment in domestic sales.
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Expected to grow at 40% p.a. to $2.2 billion by 2010.
Exports expected to grow from $15.5 billion in 2005 to over $25 billion by 2010.
Potential
India has several well recognized strengths which have made it a significant force in the global Gems and Jewellery
business.
Highly skilled, yet low-cost labour.
Established manufacturing excellence in jewellery and diamond polishing.
India is the most technologically advanced diamond cutting center in the world.
Opportunity to address one of the worlds largest and fastest-growing Gems and Jewellery markets.
Opportunity to leverage Indias strengths to address the global market.
The sector is largely unorganized at present with a small but growing organized sector
The Indian gems and jewellery sector is largely unorganized at present. There are over 15000 players across the country
in the gold processing industry, of which only about 80 players have a turnover of over US$ 4.15 million (Rs 200 million).
There are about 450,000 goldsmiths spread throughout the country. India was one of the first countries to start makingfine jewellery from minerals and metals and even today, most of the jewellery made in India is hand made.
The industry is dominated by family jewellers, who constitute nearly 96 per cent of the market. Organized players such as
Tata with its Tanishq brand, have, however, been growing steadily carving a 4 per cent market share. As Indias jewellery
market matures, it is expected to get more organized and the share of family jewellers is expected to decline.
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There are more than 6000 players in domestic diamond processing industry. The average gestation period for setting up
a diamond cutting and polishing unit is 15 months. The low gestation period, coupled with low capital cost allows easy
entry into the sector. This has led to the industry being largely characterized by a large number of small scale players.
However, just as in the case of jewellery, the share of the organized sector has increased significantly in recent years due
to an increase in demand for better and finer quality finished goods.
Presence of traditional pockets of jewellery manufacture
Jewellery crafting by traditional goldsmiths is confined to a few regions in India. These pockets are widely
separated and involve craftsmen whose skills have been handed down over generations. Surat is an important
diamond processing centre, which exports around 80 per cent of the production and has more than 3,500
diamond processing units.
Jaipuris a key centre for polishing precious and semi-precious gemstones.
Delhi and its neighbouring states are famous for manufacturing silver jewellery and articles.
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Calcutta is popular for its lightweight plain gold jewelry. This category of jewellery finds a large market in Tamil
Nadu.
Hyderabad is the centre for precious and semi-precious studded jewellery.
Nellore is a source for hand made jewellery that has been supplying the Chennai market for quite a few decades.
Belgaum in Karnataka and Nellore together, specialize in studded jewellery using synthetic or imitation stones.
Coimbatore in Tamil Nadu specialises in casting jewellery.
Trichurin Kerala is another source for lightweight gold jewellery and diamond cutting.
Mumbai is the centre for machine made jewellery. The city is also Indias largest wholesale market in terms of
volume.
While these clusters have evolved over time based on the availability of raw materials, skilled labour and market potential,
these have been developed and made competitive through support from the Government of India through its special
economic zones and cluster development programmes. The clusters help in building a globally competitive environment
for the Indian gems and jewellery industry.
The Indian gems and jewellery industry has significant potential
India offers attractive opportunities across the industry value chain
The value chain of gems and jewellery industry can be represented in the following manner.
India has strengths and offers attractive opportunities across each of the above elements of the value chain, which are
detailed below.
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Mining
India has significant reserves of gold, diamond, ruby and other gem stones. Key states with gems stone reserves and
mining potential are Maharashtra, Madhya Pradesh, Orissa, Chattisgarh, Bihar and Andhra Pradesh.
Orissa has deposits of Ruby and has about 20 varieties of various gemstones like rhodoline, garnet, aquamarine etc.
Andhra Pradesh has gold and diamond bearing areas, as well as occurrences of semi-precious and abrasive stones
spread over different districts.
Recognizing the potential of the large unexplored gemstone reserves in India, the Government of India as well as different
state governments have been taking initiatives to open up the sector for exploration by global players. For example, the
Government of Orissa has announced a comprehensive mining policy allowing private and domestic investments in this
sector. These initiatives have attracted foreign investors - diamond mining leases and exploration projects have been
undertaken by Rio Tinto and Diamond Trading Corporation (DTC).
Untapped reserves of gems and favourable government policies provide opportunities for foreign direct investment in
mining and avenues for global companies to explore precious metals and stones in India.
Gemstone processing
India was the first country to introduce diamonds to the world - the country was the first to mine diamonds, cut and polish
them and also trade them. Cutting and polishing of diamonds and other precious stones is one of the oldest traditions in
India and the country has earned a considerable reputation both in the domestic and international markets for its skills
and creativity.
In the global diamond market today, diamonds processed in India account for 55 per cent share in value terms, 80 percent share in caratage (weight) terms and 90 per cent share in volume terms. Today there is a ready availability of an
entire range of diamonds in nearly every size, quality and cut.
India offers the twin advantages of skilled labour and low cost, in the area of gemstone processing, as compared to other
gems processing.
Jewellery manufacturing
India has well-established capabilities in making hand-made jewellery in traditional as well as modern designs. Indian
hand-made jewellery has always had a large ethnic demand in various countries with sizeable Indian immigrant
population such as the Middle East, South-East Asian countries, USA and Canada.
In recent times, India has also developed capabilities in machine-made jewellery. With imported or domestic processed
studding, Indian machine made jewellery is expected to generate demand from non-ethnic jewellery markets as well.
The share of gold jewellery in Indias exports of gems and jewellery increased from 9 per cent in 1994 to 22 per cent in
2004, an indication of growing acceptance in the world market.
In the area of diamonds, Indian jewellers have been focusing on moving up the value chain, from being a polisher of
rough diamonds to a manufacture of jewellery. Exports of diamond jewellery are expected to increase in the future.
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The central and various state governments in India have come out with policy incentives to promote jewellery
manufacturing. For example, Andhra Pradeshs New Industrial Policy declares gems and jewellery as a thrust area and a
package of incentives are being offered for setting up manufacturing park facilities for value addition and export of gems
and jewellery.
Given Indias strengths and potential for growth in this area, jewellery manufacturing can be an attractive area for
investment in India.
Jewellery Retailing
India has a large and growing domestic jewellery market of US$ 8.9 billion. Jewellery retailing in India is undergoing a
slow transformation from a largely unorganized sector to a more organized one. While the family owned jewellery store
remains the predominant retail format, new formats such as boutiques, supermarkets and gold souks are emerging for
jewellery retail. Indian customers are displaying growing preference for quality, designs and branding. The jewellery
retailing sector can offer long term benefits to organized players investing in this area.
Certification
Following the World Diamond Councils statement on adopting credible and effective measures against the trade in
conflict gems, the Indian government has tightened its certification process for international trade. The Gems & Jewellery
Promotion Council is Indias certification authority. The governments Central Board of Excise and Customs has banned
the import or export of rough diamond shipments, which are not accompanied by a Kimberley Process certificate
launched in Switzerland. Certification for quality diamonds and jewellery has given a fillip to exports and resulted in
greater acceptance of Indian products in the world market.
Technology
The Indian gems and jewellery industry has made rapid strides in design, powered by a new generation of young,
professionally trained, technology driven designers. Many of Indias jewellery manufacturing facilities are equipped withthe latest CAD / CAM and other advanced design systems. Technology solutions are also available for production control,
supply chain and inventory management in the jewellery industry. The Special Economic Zones and Gems and Jewellery
Parks developed in different states offer technology-enabled environments that are conductive to growth and quality
production.
The gems and jewellery industry in India is a good blend of modern manufacturing and design techniques with traditional
skills of the Indian artisan. The Indian industry is also compliant with international norms such as the Kimberly Process
and the Patriot Act, etc.
With well-established capabilities across the value chain, India is an attractive potential market in the gems and jewellery
sector.
GEMS AND JEWELLERY ANALYSIS
The gems and jewellery sector with an export increasing from Rs.42 crores in 1970 71 to Rs.20530 crores in 1997 98
continued to be one of the highest foreign exchange earners for the country. Exports from this sector registering manifoldincrease on an average, shared around 16 per cent of the countrys total exports during the 1990s compared to 3 per
cent in 1970 71. Cut and polished diamonds happened to be the single largest item of export in this sector followed by
gold jewellery. Diamonds with an export of Rs.16579 crores accounted for 81 per cent of the exports from this sector in
1997 98 (compared to 66 per cent in 1970 71) and the gold jewellery with an export of Rs.3077 crores shared nearly
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15 per cent of the exports from this sector. These two items, together accounting for 96 per cent of the gems and
jewellery exports in 1997 98 emerged as the star performers indicating their enormous growth potential for exports.
The exports of other items in terms of this value of their share in gems and jewellery exports though appeal to be small
(compared to diamonds and gold jewellery) registered substantial increase from Rs.5 crores in 1970 71 to Rs.654
crores in 1997 98. These items appear to be loss perspective in view of their small production base or limited availability
of raw materials or both.
However, the overall growth in exports of gems and jewellery can be attributed to rising overseas demand, apart fromincreased world production and supply of rough stones and the liberalized policy on import of raw materials by
Government of India from 1970s. The overall size and trend of gems and jewellery exports from India reflecting the rapid
rise in the exports of diamonds and gold jewellery are given in the Table below:
Table : Gems and Jewellery Exports from India
(Value : Rs. crore)Product 1970 71 1980 81 1990 91 1997 98
Cut and Polished Diamonds 28 591 4739
16579(Percentage Share) (66) (92) (88)(81)
Coloured Gemstones 09 28 208490
Gold Jewellery 00 15 3643097
(Percentage Share) (-) (2) (7)(15)
Other Precious Metal Jewellery 00 01 15129
Pearls 01 04 0815
Synthetic Stones 01 00 0008
Imitation / Artificial Jewellery 03 02 0212
Total Exports 42 642 546020530
The major markets for Indian gems and jewellery include USA, Hong Kong, Belgium, Japan, Israel and UAE, which
absorbed about 81 per cent of Indias exports during 1990 91 to 1997 98. The first four countries accounted for about
75 per cent of Indias exports of gems and jewellery during 1990s. Indias 10 major markets for gems and jewellery are
given in the Table below:
Table : Indias Exports of Gems and Jewellery to Ten Major Markets
(Value : Rs. crore)Major Markets 1990 91 1995 96 1996 97 1997 98USA 1621 5012 54396930Hong Kong 702 4064 37334245
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Belgium 941 2450 25232874
Japan 978 2418 17471218Israel 92 496 510767UAE 40 413 678766
UK 175 315 418436
Thailand 212 783 623364Singapore 64 349 430322Switzerland 138 246 301307
Total Exports 5360 18145 1852120530
(including others)
As mentioned earlier, diamonds and gold jewellery in the gems and jewellery sector are by far the most important and
prospective items for exports. Here, in the Table below, we would like to present the trend of exports to the major markets
for Indian diamonds and gold jewellery. The major markets as will be seen, accounting for more than 80 per cent of the
Indian diamond exports include USA, Hong Kong, Belgium and Japan while USA, UAE, UK, Singapore, Kuwait and Hong
Kong, on the other hand, absorbing over 50 per cent of the exports have emerged as the important markets for Indian
gold jewellery. The Table below indicates Indias exports of diamonds and gold jewellery to major markets.
Table : Indias Exports of Diamonds and Gold Jewellery to Major Markets
(Value : Rs. crore)
Major Markets Diamonds Cut and Polished Gold Jewellery1980 81 1990 91 1997 98 1980 81 1990 91
1997 98 Total Exports 591 4739 16579 15.0 364.0
3097.0USA 151 1497 6051 0.7 76.0576.0Hong Kong 120 358 4057 0.3 3.078.0
Belgium 98 940 2881 - --
Japan 68 952 1156 - 1.0 25.0UAE - - 193 2.8 61.0 557.0UK - - - 0.7 122.0329.0Singapore - 57 232 - 5.0 85.0Kuwait - - - 7.7 8.0
81.0 Total Gems and Jewellery 642 5360 20530 642.0 5360.0 20530.0ExportsSource : Gems and Jewellery Export Promotion Council, Mumbai
The domestic industry has been growing at a significant rate
The gems and jewellery sector in India has been growing across all key segments, as detailed below.
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Precious Metals
Gold
The current consumption of gold in India is estimated at over 900 tonnes, used mostly in 20 / 22 carat jewellery. Nearly 95
per cent of gold is used to manufacture gold jewellery in the domestic markets and the remaining 5 per cent is exported.
Gold consumption in India is primarily aimed at investment.
Silver
India annually consumes around 4,000 tonnes of silver. Silver jewellery and other articles for personal use, especially in
the rural areas, account for the bulk of the sales. India is also the third largest industrial user of silver in the world, after
the US and Japan.
Platinum
Platinum or white gold, targeted at the premium jewellery segment, is gaining preference of designers and consumers
globally. While Indias share in the global platinum jewellery market is growing by 19 per cent annually, it continues to be
is less than one per cent in the global platinum jewellery market. Given the global growth and the maturing of the Indian
market to international trends, this represents an area for potential growth in India.
Gemstones
Indias gemstone industry has been growing due to the popularity of gemstone-studded jewellery across the globe, with
an estimated turnover at US$ 0.22 0.26 billion.
Jewellery
The Indian jewellery market is one of the largest in the world. The Indian market size at US$ 13 billion, is second only to
the US market of US$ 40 billion and is followed by China at US$ 11 billion.
The gold jewellery market is growing at 15 per cent per annum and the diamond jewellery market, at 27 per cent per
annum.
The emergence of branded jewellery is a new trend that is shaping the Indian jewellery market Branded jewellery is a
relatively new concept in the sector, and has positioned itself on the quality, reliability and wearability factors. The
branded jewellery market in India is estimated at US$ 111.6 million per annum. Trends also show that traditional
handcrafted jewellery is slowly giving way to machine-made jewellery.
Exports of gems and jewellery have also been growing
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India recorded US$ 15.6 billion worth of exports in the gems and jewellery sector in 2004-05, up by 26.44 per cent from
the previous year. The industry is expected to achieve exports of US$16 billion by 2007.
Gold jewellery sector recorded 42.23 per cent growth to US$ 3.81 billion in 2004-05.
CURRENT SENERIO
ITEMS April'09 -January'10
(Provisional)
April '08-January'09
(Same ports as current year)
% Growth / decline over previous Year
Rs. InCrores
US $ inMillion
Rs. In Crores US $ in Million Rs. US $
Cut & PolDiamonds *
65693.04 13789.99 55453.91 12458.65 18.46 10.69
(Quantity in LakhCarats)
460.19 384.16 19.79
Gold Jewellery-D.T.A
7958.04 1668.83 7919.18 1812.35 0.49 -7.92
SEZ / EPZ 28512.77 5977.65 25623.59 5596.84 11.28 6.80
Total 36470.81 7646.48 33542.77 7409.19 8.73 3.20
ColouredGemstones
1159.82 243.31 1012.16 225.18 14.59 8.05
Others 1305.19 274.81 972.28 215.66 34.24 27.43
Net Exports 104628.86 21954.59 90981.12 20308.68 15.00 8.10
Exports of RoughDiamonds
2789.66 584.21 2998.12 673.17 -6.95 -13.22
(Quantity in LakhCarats)
182.99 269.99 -32.22
Total Exports 107418.52 22538.80 93979.24 20981.85 14.30 7.42
Note:
Data of Cut & Pol Diamonds include export of CPD (Bonded W.H) also*
Figures in bracket shows quantity in lakh carats
Data from Chennai MEPZ has not been received for Dec 09 & Jan 2010
Figs from Vizakhapatnam SEZ has not been received for April 2009 to January 2010
Above figures does not include data for Costume/ Fashion Jewellery, and Sales to foreign tourists.
Advantage India
Gems and Jewellery hub
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Rich tradition / heritage of craftsmanship with high level of skills
Low production costs
Effective worldwide distribution network for promotion and marketing.
Diamond polishing capital of the world.
Manufacturing excellence
EXPORT FACILITATION MEASURES BY THE MINISTRY OF COMMERCE &
INDUSTRY DURING THE YEAR 2009
MSTC Limited and STCL Limited have now been added under the list of nominated agencies notified under para
4 A.4 of Foreign Trade Policy for the purpose of import of precious metals.
Surat in Gujarat, which is home to thousands of diamond units with lakhs of diamond workers, has been
recognized as "Town of Export Excellence".
The authorized persons of gems and jewellery units in Export Oriented Units shall be allowed personal carriage of
gold in primary form up to 10 kg in a financial year subject to Reserve Bank of India and customs guidelines.
FOREIGN TRADE POLICY (2009-2014) INITIATIVES
Import of gold of 8k and above is allowed under replenishment scheme subject to import being accompanied by an Assay
Certificate specifying purity, weight and alloy content.
Duty Free Import Entitlement [based on Free On Board (FOB) value of exports during previous financial year] of
consumables and tools, for:
Jewellery made out of:
Precious metals (other than gold & platinum) - 2%
Gold and platinum - 1%
Rhodium finished silver - 3%
Cut and polished diamonds - 1%
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Duty free import entitlement of commercial samples shall be US $ 6,187.94.
Duty free re-import entitlement for rejected jewellery shall be 2% of FOB value of exports.
Import of diamonds on consignment basis for certification/ grading & re- export by the authorized offices/agencies
of Gemological Institute of America (GIA) in India or other approved agencies will be permitted.
Personal carriage of gems & jewellery products in case of holding/participating in overseas exhibitions increased
to US$ 5 million and to US$ 1 million in case of export promotion tours.
Extension in number of days for re-import of unsold items in case of participation in an exhibition in USA
increased to 90 days.
In an endeavour to make India an international trading hub for diamond, it is planned to establish "Diamond
Bourse (s)".
INVESTMENT OPPORTUNITIES
Gemstone Processing (Cutting and Polishing)
Jewellery Manufacturing and Retailing
Jewellery Certification
Branded Jewellery
FUTURE OUTLOOK
All India Gem and Jewellery Trade Federation (GJF) are targeting growth from US $ 16.79 billion to US $ 26.23 billion by
the year 2012.
GEM AND JEWELLERY EXPORT PROMOTION COUNCIL (GJEPC)
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