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INDUSTRY & SERVICES

GEMS AND JEWELLERY

Gems and Jewellery is an important emerging sector in the Indian Economy. Ranked among the fastest growing sectors, it is also a leading sector for foreign exchange generation.

The gems and jewellery industry is very much fascinating being traditionally glamorous and artistically modern. This business employees and engages millions; cover wide activities such as raw material procurement from far flung Africa, Australia, Canada and Russia, and transforming these into products in demand with the skills available in China, India, Italy and Turkey for the sophisticated markets in the USA, Europe, Far East, Middle East and Asia.

India's Position in Gems and Jewellery Sector

  1. Gems and Jewellery is one of India 's leading foreign exchange earning sectors.
  2. It accounted for 16.7 per cent of India 's total Merchandise Exports.
  3. USA’s import of Gem & Jewellery from India increased by 50.5% in 2010 as compared to 2009.
  4. India Gems & Jewellery exports are expected to grow at a whopping 15 to 20 per cent in FY 2011-2012.
  5. At present India exports 95% of the world’s diamonds.

Advantage India

  • Gems and Jewellery hub
  • 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

Key Industry Components

Diamonds:

Diamonds have always enjoyed a special place among precious gemstones. In the past, diamond jewellery was limited to a very small elite segment of the global population. However, over the past 50 years, diamonds have seen increasing democratisation. Diamond jewellery has, therefore, emerged as a segment showing significant growth in some of the emerging markets.

Gold:

Gold has always been the jewellers' favourite metal given its intrinsic lustre and ease of fabrication Gold jewellery enjoys the leading position in most markets across the world, and in many ways forms the backbone of the precious jewellery industry. Given the fact that gold is also one of the traded metals, gold jewellery consumption is also impacted by gold price movements.

Coloured gemstones:

This segment includes all other forms of jewellery; precious gemstones (emeralds, sapphires, rubies and tanzanite) and semi-precious gemstones; silver, pearls, etc. The industry is highly fragmented making it difficult to track supply, demand and global trade.

Exports

During the Fiscal Year 2010-11, the total exports for gems and jewellery stood at US$ 43139.24 million as compared to US$ 29368.72 million during the fiscal year 2009-10. During the same period, the sector registered a growth of 46.89 per cent over the previous year.

Composition of Exports

  • Cut and polished diamonds: The export of cut and polished diamonds grew manifold in 2010-11 as compared to 2009-10. In 2010-11, the export of cut and polished diamonds was US$ 28251.92 million as compared US$ 18237.56 million, recording a growth of 54.91 per cent.

  • Coloured Gemstones: Export of coloured gemstones was registered at US$ 314.54 million in 2010-11 as compared to US$ 286.78 million in 2009-10, showing a growth of 9.68 per cent.

  • Gold Jewellery: Export of Gold jewellery also grew in 2010-11, registering US$ 12885.59 million as compared to US$ 9669.10 million in 2009-10. A growth of 33.27 per cent was recorded.

Net Exports of Gems and Jewellery items during April-May 2012

Summary of provisional figures of Export of gems & jewellery items during April-May 2012

Items

April-May2012
April-May 2012
(Same ports as current year)
% Growth/decline over previous Year
 
US$ in Million
US$ in Million
US$

Cut & Pol Diamonds

2595.88
4292.02
-39.52

Gold Jewellery-D.T.A

334.33
316.89
5.50

SEZ/EPZ (included Gold Jewellery & Gold Medallions and coins)

2556.32
1957.23
30.61

Total

2890.65
2274.12
27.11

Coloured Gemstones

42.94
43.59
-1.49

Silver Jewellery

78.7
89.85
-12.41

Others *

12.27
4.60
166.74
Net Exports
5620.44
6704.18
-16.17

Exports of Rough Diamonds

232.28
250.42
-7.24
Others
7.23
16.91
-

Total Exports

5859.95
6971.51
-15.94

Source: The Gem & Jewellery Export Promotion Council (GJEPC)

(As per RBI average exchange rate)

  • * Data of Cut & Pol Diamonds include export of CPD (Bonded W.H) also.
  • Figures for April - May 2012 are provisional and subject to revision.
  • Data for April & May 2012 does not include figures from Aircargo Mumbai FPO, Cochin Aircargo
    & Jaipur FPO May 2012
  • Above figures does not include data for costume/ fashion jewellery, and sales to foreign tourists.


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