Gems & Jewellery

gems and jewellery

The Gems and Jewellery industry in India, like other MSME industries, is a highly fragmented industry. This characteristic of the Gems & Jewellery industry leads to a high share of the unorganised sector as compared to the organized sector. The components of jewellery include not only traditional gold but also a variety of diamond and platinum. The industry also trades in varieties of precious and semi-precious stones.

Gems and Jewellery form an important part of India’s rich culture. This culture is the primary reason for a flourishing Gems and Jewellery industry in India. The numbers also support this statement. India is the largest consumer of gold, with over 20% share of the total gold consumed in the world.  The overall size of the industry is Rs. 12,400 crore. Its total exports add up to Rs. 78,100 crore annually. This comprises 4% of the global Gems and Jewellery market. India is also the largest diamond cutting and polishing centre in the world. On the domestic front the sales figure equals to Rs 73,500 crore.

There are lot of advantages that India offers to the Gems and Jewellery market. India is the fastest growing branded jewellery market in the world. It is expected to grow at an annual growth rate of 40%. India also has a vast pool of highly skilled labour that is available at a low cost. Many design centres and training institutes have also blossomed. India holds a good reputation in the global market for being a top class manufacturer of jewellery. The technological environment for the industry is also advanced and comparable to the best in the world

A huge potential still remains to be harvested. To facilitate this government has allowed 100% FDI (through the automatic route), proposed Gems & Jewellery parks and supported the Gems and Jewellery Export Promotion Council in organizing the IIJS Signature, which is the largest jewellery show in Asia.

Going forward the branded jewellery market is expected to grow to Rs. 10,100 crore by 2010. Exports are expected to grow from Rs. 78,100 crore in 2006 to over Rs. 1.2 lakh crore by 2012. A bright future awaits the Gems & Jewellery industry with large potential still untapped.

Data Sources: Investment Commission of India, Export Promotion Council for Gems & Jewellery

Relevant Reports
Gems & Jewellery Investment Opportunities- Gujarat->Industries Commissionerate- Govt. of Gujarat
Standards in Jewellery Business->All India Gems And Jewellery Trade Association
Amendments in the Provisions Relating to Gem & Jewellery Export Promotion Schemes EXIM Policy 2002-2007->Ministry of Finance
FICCI Study on Gems & Jewellery Industry->FICCI
Report on Gems and Jewellery->Indian Brand Equity Foundation
Human Resource and Skill Requirements in the Gems and Jewellery Sector->National Skill Development Corporation (NSDC)