Jewellery Exports

from India
Lalit Sondhi
MBA-IB
 ● It was around 5000 years ago when the curiosity to
History of beautify themselves by adorning some jewelry
pieces aroused in people.
jewellery in India ● In India, jewelry has not only traditional and
aesthetic value, but is also considered as a source
of security in times of financial crisis.

● The beauty of Indian jewelry lies in the uniqueness

of its design and the efforts of the workmanship
involved in creating the intricate designs.

● India houses various kinds of jewelry arts, ranging

from Meenakari and Kundan to stone and bead
work. The craft of cutting and polishing precious and
semi-precious stones and giving them glamorous
face is something artistic.

● Emeralds, rubies, garnets, amethysts, corals,

sapphires, and turquoises are among the stones
which are used for the enhancement of gold and
silver jewelry.
 Antique Jewelry
Various types of Bead Jewelry
Bridal Jewelry
Indian jewellery Custom Jewelry
Fashion Jewelry
Filigree Jewelry
Gold Jewelry
Handmade Jewelry
Ivory Jewelry
Jadau Jewelry
Kundan Jewelry
Lac Jewelry
Meenakari Jewelry
Navratna Jewelry
Pachchikam Jewelry
Silver Jewelry
Stone Jewelry
Temple Jewelry
Tribal Jewelry
 Agate
Gems found in Aquamarine

India
Carnelian
Citrine
Emerald
Garnet
Kunzite
Lapis lazuli
Moissanite
Moonstone
Obsidian
Opal
Pearl
Quartz
Sapphire
Tiger’s eye
Turquoise
Gems and Jewelry ● The Gems and Jewellery sector plays a significant
role in the Indian economy, contributing around 6-7

sector in India
per cent of the country’s GDP. One of the fastest
growing sectors, it is extremely export oriented and
labour intensive.

● Based on its potential for growth and value addition,

the Government of India has declared the Gems
and Jewellery sector as a focus area for export
promotion. The Government has recently
undertaken various measures to promote
investments and to upgrade technology and skills to
promote ‘Brand India’ in the international market.

● India is deemed to be the hub of the global jewellery

market because of its low costs and availability of
high-skilled labour. India is the world’s largest
cutting and polishing centre for diamonds, with the
cutting and polishing industry being well supported
by government policies.
Gems and Jewelry ● Moreover, India exports 75 per cent of the world’s
polished diamonds, as per statistics from the Gems

sector in India
and Jewellery Export promotion Council (GJEPC).
India's Gems and Jewellery sector has been
contributing in a big way to the country's foreign
exchange earnings (FEEs).

● The Government of India has viewed the sector as a

thrust area for export promotion.

● The Indian government presently allows 100 per

cent Foreign Direct Investment (FDI) in the sector
through the automatic route.
Market size
● The gems and jewellery market in India is home to
more than 500,000 players, with the majority being
small players.

● India is one of the largest exporters of gems and

jewellery and the industry is considered to play a
vital role in the Indian economy as it contributes a
major chunk to the total foreign reserves of the
country.

● UAE, US, Russia, Singapore, Hong Kong, Latin

America and China are the biggest importers of
Indian jewellery.

● The demand for gold in India rose by 15 per cent

year-on-year to reach 123.5 tonnes during January-
March 2017, according to the World Gold Council
(WGC).

● The overall net exports of Gems & Jewellery during

April 2017 stood at US$ 3.2 billion, whereas exports
of cut and polished diamonds stood at US$ 1.75
billion.
Market Size ● Exports of gold coins and medallions stood at US$
553.59 million and silver jewellery export stood at
US$ 768.92 million during April 2017.

● India has become the second largest exporter of

diamonds, gems and stones to China, as total
exports grew by 28.48 per cent year-on-year to
touch US$ 2.48 billion in 2016, as stated by Mr
Prakash Gupta, Consul General of India in
Shanghai.
 India is the most preferred country in terms of gems and

Jewelry exports jewellery export. The facts listed below give us an idea of
India’s position on the global gems and jewellery export

from India map. Indian gems and jewellery are exported across
continents.

● Net G&J exports from India stood at US$ 35.54

billion in April 2016-March 2017 (year-on-year

growth of 9.09 per cent).

● Over April 2016-March 2017, exports of silver

jewellery registered a growth of 35.87 per cent, cut

and polished diamonds registered a growth of 10.24

per cent; while gold jewellery registered a growth of

1.92 per cent.

● India is the largest cut and polished diamond

manufacturer in the world and exports 93 % of its

production.
Jewelry exports ● India is the world’s largest gold consumer, and third

from India
largest diamond consumer, accounting for 29 per
cent share and 8 per cent share respectively, of the

total global consumption.

● According to GJEPC Chairman Praveen Shankar

Pandya, gems and jewellery exports are likely to

witness a growth of about 10 per cent in FY 2017-18

due to increasing demand in the US and Europe.

● The domestic G&J market is expected to grow at a

rate of compound annual growth rate (CAGR) of 13

per cent to US$ 80-85 billion mark by 2018, from

US$ 50 billion in 2015.

Jewelry exports ● India exported 75 per cent of the world’s polished

from India
diamonds in 2016.

● India exports over 95 per cent of the world’s

processed diamonds.
Export Data

● June 2017
● Value wise export for 10 years
 China: US$13.3 billion (13.9% of total jewelry exports)
15 countries that India: $12.6 billion (13.2%)

exported the Switzerland: $11 billion (11.6%)

United States: $9.9 billion (10.3%)

highest dollar value Italy: $6 billion (6.3%)

Hong Kong: $6 billion (6.3%)
worth of jewelry United Kingdom: $4.9 billion (5.1%)

during 2016: France: $4.7 billion (4.9%)

Indonesia: $4.1 billion (4.3%)
Turkey: $3.8 billion (3.9%)
Thailand: $3.5 billion (3.7%)
Singapore: $2.9 billion (3.1%)
Japan: $2.3 billion (2.4%)
United Arab Emirates: $2 billion (2.1%)
Germany: $1.8 billion (1.9%)
Investments
The cumulative Foreign Direct Investment (FDI) inflows in
diamond and gold ornaments in the period April 2000 - March
2017 were US$ 895.96 million, according to Department of
Industrial Policy and Promotion (DIPP).
Some of the key investments in this industry are listed below.

● The International Institute of Diamond Grading &

Research (IIDGR) has invested US$ 5 million for
expanding its synthetic diamond testing facility in Surat.

● Kalyan Jewellers plans to invest Rs 500 crore (US$ 75

million) to add 15 new showrooms in 2017, to add to
their on-going expansion in Northern and Eastern
regions of India as well as expansion in West Asia.

● London’s ultra-luxury jeweller for the super-rich,

Faberge, owned by the world’s top emeralds and rubies-

miner Gemfields Plc., has decided to enter India..

Problems Faced in ● Dependence on imports

export of gold ● Changing fashion

● Imbalance growth of products

● Manual way of crafting

● Various problems regarding labourers

● Financial problems

● Procedural hardships

● Unemployment
Government
● In the Union Budget 2017-18, the Government of India,
offered tax cuts for the middle class and other sections of

Initiatives
society (5 per cent for the Rs 250,000-500,000 tax slab;
which was 10 per cent initially). All these measures will
drive consumption, which will be favourable to the gems
and jewellery industry.
● The Government of India’s proposal to cut corporate tax
rates to 25 per cent for micro, small and medium
enterprises (MSMEs) having annual turnover up to Rs 50
crore (US$ 7.5 million) will benefit a large number of
gems and jewellery exporters from MSME category.
● The Government of India’s announcement on
establishing gold spot exchange could help in India’s
participation in determining gold price in the international
markets.
● The demonetisation move is encouraging people to use
plastic money, debit/ credit cards for buying jewellery.
This is good for the industry in the long run and will
create more transparency.
Road ahead
● In the coming years, growth in Gems and Jewellery sector
would be largely contributed by the development of large
retailers/brands.
● Established brands are guiding the organised market and
are opening opportunities to grow.
● Increasing penetration of organised players provides
variety in terms of products and designs.
● Also, the relaxation of restrictions of gold import is likely to
provide a fillip to the industry.
● The improvement in availability along with the
reintroduction of low cost gold metal loans and likely
stabilisation of gold prices at lower levels is expected to
drive volume growth for jewellers over short to medium
term.
● The demand for jewellery is expected to be significantly
supported by the recent positive developments in the
industry.
● Mr Narendra Modi, Prime Minister of India, encouraged the
diamond industry in Surat, Gujarat to come forward in
making India number one in the gems and jewellery sector,
by focusing on Design in India in addition to the Make in
India campaign.
Thank
you