37574301 Gems and Jewelry Sector in India

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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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Documents

37574301 Gems and Jewelry Sector in India