India is among the fastest gold-jewelry demand centers in the world. As is well known, India is likewise among the biggest purchasers of gold. The entire gold demand and other key sources of info are met with imports. Despite of the huge state of imports, India has earned notoriety for being a substantial buyer of valuable metal jewelry and a favored exporter of finished items over the world. The craftsmanship offered by Indian goldsmiths, the unparalleled assortment of outlines found in Indian jewelry and cost competitiveness has been the key attractions for purchasers.
The Indian goldsmith is among the most talented on the planet. The seat laborers in the hued gemstones-and diamonds-processing industry take into account requests for cleaning the smallest of valuable, semi-valuable, and synthetic stones with concentrating on low wastage levels. There are assessed 60,000 jewelry manufacturing units in India. The business depends vigorously on the abilities of its worker.
Gems and Jewelry have been a part of most of the cultures of the world at some point of time or other. From its basic use as currency, it is now used as an instrument to store and display wealth. The industry is highly export-import oriented, labor-intensive, and employment-oriented. Realizing enormous potential of the sector, the Ministry of Commerce, Government of India declared gem and jewelry as a thrust sector for export promotion and formed Gem and Jewelry Export Promotion Council (GJEPC) in 1966. The GJEPC is an all India apex body representing more than 6,500 gem and jewelry traders from India. India’s 300,000 traditional jewelers – commonly referred to as the unorganized sector – dominate the country’s jewelry retail landscape with a 96 percent market share. Keeping in mind that only 4% of the sector is in organized hands.
The Gems and Jewellery sector plays a significant role in the Indian economy, contributing around 7 percent of the country’s GDP and 15 percent to India’s total merchandise exports. It also employs over 4.64 million workers and is expected to employ 8.23 million by 2022. One of the fastest-growing sectors, it is extremely export-oriented and labor-intensive.
The Prime minister said Surat has made a mark in the diamond cutting and polishing but there is now need to look at the entire gems and jeweler sector. He said that as far the gems and jeweler sector is concerned, our aim should not only be make in India but also “Design in India”.
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 jewelry market because of its low costs and availability of high-skilled labor. India is the world’s largest cutting and polishing center for diamonds, with the cutting and polishing industry being well supported by government policies. Moreover, India exports 75 percent of the world’s polished diamonds, as per statistics from the Gems 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 percent Foreign Direct Investment (FDI) in the sector through the automatic route.
Gold demand in India rose to 523.93 tons between January to September 2018. India’s gems and jewelry exports stood at US$ 28.52 billion between Apr 2018 –Feb 2019*. During the same period, exports of cut and polished diamonds stood at US$ 21.95 billion, thereby contributing about 76.96 percent of the total gems and jewelry exports in value terms. Exports of gold coins and medallions stood at US$ 686.51 million and silver jewelry exports stood at US$ 765.98 million between April 2018 – February 2019 *. The gems and jewelry market in India is home to more than 300,000 players, with the majority being small players. Its market size is about US$ 75 billion as of 2017 and is expected to reach US$ 100 billion by 2025. It contributes 29 percent to global jewelry consumption.
Investments and Developments
The Gems and Jewellery sector is witnessing changes in consumer preferences due to the adoption of the western lifestyle. Consumers are demanding new designs and varieties in jewelry and branded jewelers are able to fulfill their changing demands better than the local unorganized players. Moreover, an increase in per capita income has led to an increase in sales of jewelry, as jewelry is a status symbol in India. The cumulative Foreign Direct Investment (FDI) inflows in diamond and gold ornaments in the period April 2000 – December 2018 was US$ 1.15 billion, according to Department for Promotion of Industry and Internal Trade (DPIIT).
1. THE BUREAU OF INDIAN STANDARDS (BIS) HAS REVISED THE STANDARD ON GOLD HALLMARKING IN INDIA FROM JANUARY 2018.
The gold jewelry hallmark will now carry a BIS mark, purity in carat and fitness as well as the unit’s identification and the jeweler’s identification mark. The move is aimed at ensuring a quality check on gold jewelry.
2. THE GEMS AND JEWELLERY EXPORT PROMOTION COUNCIL (GJEPC) SIGNED A MEMORANDUM OF UNDERSTANDING (MOU)
with Maharashtra Industrial Development Corporation (MIDC) to build India’s largest jewelry park in at Ghansoli in Navi-Mumbai on a 25 acres land with about more than 5000 jewelry units of various sizes ranging from 500-10,000 square feet. The overall investment of Rs 13,500 crore (US$ 2.09 billion).
In the coming years, growth in the Gems and Jewellery sector would be largely contributed by the development of large retailers/ brands. Established brands are guiding the organized market and are opening opportunities to grow. Increasing penetration of organized players provides variety in terms of products and designs. Online sales are expected to account for 1-2 percent of the fine jewelry segment by 2021-22. 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 stabilization of gold prices at lower levels is expected to drive volume growth for jewelers over the short to medium term. The demand for jewelry is expected to be significantly supported by the recent positive developments in the industry.