India's gems and jewellery sector contributes about 7% to India's GDP and 15% to India's total merchandise exports. It employs over 4.64 million people currently and is expected to employ 8.23 million by 2022. Exports of cut and polished diamonds grew 4.17% and gold jewellery grew 10.91% between FY2016-17 and FY2017-18. India processes 1 billion pieces of diamonds worth US$ 23 billion annually and exports 75% of the world's polished diamonds, making it the world's largest diamond processing centre. The sector's market size is about US$ 75 billion currently and is expected to reach US$ 100 billion by 2025. Growing domestic demand and
India’s gems and jewellery sector contributes about 7 per cent to India’s Gross Domestic Product (GDP) and 16
per cent to India’s total merchandise exports. The sector employs over 4.64 million employees and is expected
to employ 8.23 million by 2022.
Introduction
The Gems and Jewellery sector plays a significant role in the Indian economy, contributing around 6-7 per cent of the country’s GDP. One of the fastest growing sectors, it is extremely export oriented and labour intensive.
Retail sales of precious jewellery increased 2.8 percent to reach 2,535 billion rupees (US$41.57 billion) in 2014. Domestic changes in the way gold jewellery is traded helped make 2014 a record year for jewellery sales.
Retail sales of gold jewellery increased 1.4 percent to reach 1,995 billion rupees (US$32.71 billion) in 2014. Consumption of gold jewellery increased 7.9 percent to reach 660.8 tonnes in 2014 according to Equity Communications' preliminary assessment of retailer sales and this was offset by a 6.4 percent reduction in the rupee gold price.
Retail sales of diamond jewellery increased 8.2% to reach 517 billion rupees (US$8.49 billion) in 2014. In general, demand for diamond jewellery is stronger and more competitive at steady gold prices because consumers will be less concerned about potentially losing out on positive gold price movements. Consumer demand for diamonds is more discretionary.
Retail sales of platinum jewellery increased 16.8 percent in 2014 to reach 17.84 billion rupees. Volume take-up increased 23 percent to reach 172,000 ounces in 2014, boosted by successful marketing of men's platinum jewellery.
Key Sales Driver: The story of gold jewellery sales in 2014
80:20 gold rule introduced in third quarter of 2013 scrapped in fourth quarter of 2015 - results in lower domestic premiums on gold
Rupee gold price down 6.4 percent in 2014 - results in cheaper gold for consumers
Companies Act rewrite forces retailers to restructure gold buying schemes - results in a flood of redemptions before March 31, 2015
The gold rush of the second quarter of 2013 was always going to be a hard act to follow. Nevertheless, sales in 2014 were actually helped by the forced review of retailer gold buying schemes because of new Companies Act rules. This factor was the biggest contributor to record sales of jewellery in 2014.
Consequently, jewellery retailers are winding down standing instalment schemes with the view of reintroducing them in compliance with new laws. Such schemes let consumers spread out purchases of jewellery pieces they normally would not afford. Instalment schemes are estimated to make up to 25 percent of annual gold jewellery sales.
Forced early redemption of instalment schemes meant that gold jewellery sales in the third quarter of 2014 were similar to sales in the impressive second quarter of 2013. A weakening of the rupee gold price during August and September also supported redemption efforts.
2015 Outlook
Fundamentally, there is strong investment incentive in consumption of jewellery in India. Gold continues to be a dependable hedge against inflation and trusted store of value. Therefore, for as long as the pricing fundamentals and economic backdrop are gold positive, consumers will first consider gold above any other jewellery option.
Economic backdrop in 2015
lower interest rates
lower inflation
faster gdp growth
On one hand, India's economic outlook for 2015 is more positiv
This presentation details the overall scenario for the Gems & Jewellery Sector in India as well as Gujarat. It highlights the business & investment opportunities present in the sector and also the government initiatives and interventions.
India’s gems and jewellery sector contributes about 7 per cent to India’s Gross Domestic Product (GDP) and 16
per cent to India’s total merchandise exports. The sector employs over 4.64 million employees and is expected
to employ 8.23 million by 2022.
Introduction
The Gems and Jewellery sector plays a significant role in the Indian economy, contributing around 6-7 per cent of the country’s GDP. One of the fastest growing sectors, it is extremely export oriented and labour intensive.
Retail sales of precious jewellery increased 2.8 percent to reach 2,535 billion rupees (US$41.57 billion) in 2014. Domestic changes in the way gold jewellery is traded helped make 2014 a record year for jewellery sales.
Retail sales of gold jewellery increased 1.4 percent to reach 1,995 billion rupees (US$32.71 billion) in 2014. Consumption of gold jewellery increased 7.9 percent to reach 660.8 tonnes in 2014 according to Equity Communications' preliminary assessment of retailer sales and this was offset by a 6.4 percent reduction in the rupee gold price.
Retail sales of diamond jewellery increased 8.2% to reach 517 billion rupees (US$8.49 billion) in 2014. In general, demand for diamond jewellery is stronger and more competitive at steady gold prices because consumers will be less concerned about potentially losing out on positive gold price movements. Consumer demand for diamonds is more discretionary.
Retail sales of platinum jewellery increased 16.8 percent in 2014 to reach 17.84 billion rupees. Volume take-up increased 23 percent to reach 172,000 ounces in 2014, boosted by successful marketing of men's platinum jewellery.
Key Sales Driver: The story of gold jewellery sales in 2014
80:20 gold rule introduced in third quarter of 2013 scrapped in fourth quarter of 2015 - results in lower domestic premiums on gold
Rupee gold price down 6.4 percent in 2014 - results in cheaper gold for consumers
Companies Act rewrite forces retailers to restructure gold buying schemes - results in a flood of redemptions before March 31, 2015
The gold rush of the second quarter of 2013 was always going to be a hard act to follow. Nevertheless, sales in 2014 were actually helped by the forced review of retailer gold buying schemes because of new Companies Act rules. This factor was the biggest contributor to record sales of jewellery in 2014.
Consequently, jewellery retailers are winding down standing instalment schemes with the view of reintroducing them in compliance with new laws. Such schemes let consumers spread out purchases of jewellery pieces they normally would not afford. Instalment schemes are estimated to make up to 25 percent of annual gold jewellery sales.
Forced early redemption of instalment schemes meant that gold jewellery sales in the third quarter of 2014 were similar to sales in the impressive second quarter of 2013. A weakening of the rupee gold price during August and September also supported redemption efforts.
2015 Outlook
Fundamentally, there is strong investment incentive in consumption of jewellery in India. Gold continues to be a dependable hedge against inflation and trusted store of value. Therefore, for as long as the pricing fundamentals and economic backdrop are gold positive, consumers will first consider gold above any other jewellery option.
Economic backdrop in 2015
lower interest rates
lower inflation
faster gdp growth
On one hand, India's economic outlook for 2015 is more positiv
This presentation details the overall scenario for the Gems & Jewellery Sector in India as well as Gujarat. It highlights the business & investment opportunities present in the sector and also the government initiatives and interventions.
it is ppt specially for class 10th. on "indian gem and jwellery sector of india" .
-no need to give credit, just change the name in presentation and use it for ur H.W .
A Study on Problems Faced by the Gems and Jewels Exporters with Special Refer...ijtsrd
The study mainly focus on the GEM traders export activities and the complications faced by them. It also to examine the mind of the respondents and their preferences on ornaments. It implies the perception of the buyer, how do they see the GEM traders. It compiles the different problems faced by the Gem trader, while they go for export to different countries. It helps to identify the consumers from different countries and their preferences. Ms. R. Mahadevi | Mr. A. Vijayakumar | Dr. M. Kanagarathinam | Dr. M. Thillainayaki ""A Study on Problems Faced by the Gems and Jewels Exporters with Special Reference to Coimbatore City"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-2 , February 2020, URL: https://www.ijtsrd.com/papers/ijtsrd29909.pdf
Paper Url : https://www.ijtsrd.com/management/business-ethics/29909/a-study-on-problems-faced-by-the-gems-and-jewels-exporters-with-special-reference-to-coimbatore-city/ms-r-mahadevi
Abstract: The prime objective of the study is to shed light on various issues and scope of gems and jewellery export in India. Indian gems and jewellery industry has attained a remarkable position worldwide. Artifacts of India’s export of gem and jewellery are acknowledged all over the world for their exquisite craftsmanship. However in the present scenario industry is confronting various hindrances which obstruct the path to realize its true potential. It has become statutory to deal with the problems and constraints which are being faced taking in the account of the fact that during FY 2013-14 the sector has contributed $34746.90 million to Indian exchange earnings, which states the decline in export by 10.58 percent. Due to the dependence on imports, the complexities involved in obtaining import license by the government should be simplified and also the lengthy procedures and intricacy involved in trading need to be rationalized. In order to sustain its position in international market there is an immediate requirement to modernize the product designs and procedures involved. In addition to this the working condition of the workforce should refined to a great extent and their ill-wage structure must be revived. Some of the other major concerns being faced are lack of training facilities, existence of Casteism, lack of permanent work, financial issues, procedural hardship and financial issues. In the view of the declining growth rate the government has instigated various measures and also a significant amount of investment in gems and jewellery sector is accounted, as a result of which the gems and jewellery industry has recovered to a certain extent. There was an increment of 12.65% percent in export of cut and polished diamonds in FY 2014. As per an industry study the sector is anticipated to draw Rs 15,000 crore (US $ 2.42 billion) by the end of 2015 which would be a striking increase by December 2012 with Rs 8000 crore (US $ 1.29 billion).
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
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Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
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Application Process:
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USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
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Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
2. Table of Content
Executive Summary……………….…..…...3
Advantage India…………………..….….....4
Market Overview and Trends……….……..6
Strategies Adopted………….……..……...13
Growth Drivers and Opportunities…..…...15
Industry Associations……………...……...22
Useful Information……….......…………....24
3. For updated information, please visit www.ibef.orgGems and Jewellery3
EXECUTIVE SUMMARY
India’s gems and jewellery sector contributes about 7 per cent to India’s Gross Domestic Product (GDP) and
15 per cent to India’s total merchandise exports.
The sector employs over 4.64 million employees and is expected to employ 8.23 million by 2022.
Contribution to GDP and
Employment
Exports of cut and polished diamonds registered a growth of 4.17 per cent; gold jewellery registered a growth
of 10.91 per cent between FY2016-17 and FY2017-18.
Robust growth in exports
India processes 1 billion pieces of diamonds which is US$ 23 billion in value.
India is the world’s largest centre for cut and polished diamonds in the world and exports 75 per cent of the
world’s polished diamonds.
India’s share in the global diamond market is 65 per cent in value terms, 85 per cent in volume terms and 92
per cent in number of pieces.
Today, 14 out of every 15 diamonds sold in the world are processed in India.
Diamonds processing and
exports
India’s gems and jewellery sector is one of the largest in the world contributing 29 per cent to the global
jewellery consumption. The sector is home to more than 300,000 gems and jewellery players.
Its market size is about US$ 75 billion as of 2017 and is expected to reach US$ 100 billion by 2025.
India’s domestic jewellery market is expected to grow at a CAGR of 5.6 per cent over FY18-23E.
Market Size
India’s gems and jewellery imports increased at a Compound Annual Growth Rate (CAGR) of 7.97 per cent
from US$ 11.63 billion in FY2004-05 to US$ 31.52 billion in FY2017-18.
Import trends
Source: GJEPC, Media sources, Aranca Research, Gems and Jewellery Export Promotion Council (GJPEC)
5. For updated information, please visit www.ibef.orgGems and Jewellery5
ADVANTAGE INDIA
ADVANTAGE
INDIA
Source: World Gold Council, Media sources, DIPP, GJEPC, Aranca Research
The cumulative Foreign Direct Investment
(FDI) in diamond and gold ornaments between
April 2000 and June 2018 stood at US$ 1.15
billion.
Domestic companies are also increasingly
investing in India by expanding their business.
The Government of India has permitted 100
per cent FDI under the automatic route in this
sector.
The Government of India has levied 3 per
cent Goods and Services Tax (GST) on gold,
gold jewellery, silver jewellery and processed
diamonds and 0.25 per cent on rough
diamonds.
India is the second highest consumer of gold
in the world as of 2017.
Gold demand in India rose 11 per cent year-
on-year to 737.5 tonnes in 2017.
India’s overall gems and jewellery demand is
also quite high. India imported gems and
jewellery worth US$ 31.52 billion during FY
2017-18. Imports of gems and jewellery
reached US$ 11.98 billion in April-August
2018.
The Indian middle class is expected to rise to
547 million by 2025 and this rise of young
Indian middle class worker is expected to
lead to an increase in demand for gold.
Also, India’s population is increasingly
becoming urbanised, which is expected to
boost household income, thereby leading to
higher demand for gold and other jewellery.
7. For updated information, please visit www.ibef.orgGems and Jewellery7
NET EXPORTS OF GEMS AND JEWELLERY
15.66
16.70
17.16
20.92
24.89
29.44
43.05
43.21
39.14
34.99
36.22
32.63
35.51
32.71
13.18
0
5
10
15
20
25
30
35
40
45
50
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19*
Source: GJEPC, Media sources
Visakhapatnam port traffic (million tonnes)Net exports of gems and jewellery (US$ billion)
Notes: * - provisional till August 2018, ^CAGR till FY18
^CAGR 5.83%
Gems and jewellery industry plays a vital role as it is one of the
largest exporters and contributes a major chunk to the total foreign
reserves of the country. The net exports rose from US$ 15.66 billion
in FY2004-05 to US$ 32.71 billion in FY 2017-18, at a CAGR of 5.83
per cent over FY05-18.
In FY18, Hong Kong, UAE and US accounted for 33 per cent, 25 per
cent and 23 per cent respectively, accounted as major export
destinations of gems and jewellery.
The net exports of gems and jewellery stood at US$ 13.18 billion
between April - August 2018.* Exports of gold coins and medallions
stood at US$ 201.75 million and silver jewellery exports stood at US$
239.04 million in April – August 2018.*
Deals worth Rs 8,000 crore (US$ 1.19 billion) were made at the
Indian International Jewellery Show held in August 2018.
8. For updated information, please visit www.ibef.orgGems and Jewellery8
EXPORTS OF CUT AND POLISHED DIAMONDS
11.16
11.83
10.91
14.21
14.80
18.24
28.22
23.36
17.43
24.50
23.16
20.67
22.78
23.73
10.31
0
5
10
15
20
25
30
Source: GJEPC
Visakhapatnam port traffic (million tonnes)Exports of cut and polished diamonds (US$ billion)
Notes: * - provisional till August 2018, ^CAGR till FY18, Data of Cut & Pol Diamonds include export of Cut and Polished Diamonds (Bonded Warehouse) also
^CAGR 5.97%
India is the world’s largest centre for cut and polished diamonds in
the world and exports 75 per cent of the world’s polished diamonds.
In FY18, India exported US$ 23.73 billion worth of cut and polished
diamonds, at a CAGR of 5.97 per cent.
India exported US$ 10.31 billion worth of cut and polished diamonds
in April - August 2018.* It contributed 78.22 per cent of the total gems
and jewellery exports.
9. For updated information, please visit www.ibef.orgGems and Jewellery9
IMPORTS OF GEMS AND JEWELLERY
11.63
14.08
14.05
18.65
23.00
28.85
42.45
42.72
37.55
30.87
31.34
24.31
28.78
31.52
11.98
0
5
10
15
20
25
30
35
40
45
Source: GJEPC
Visakhapatnam port traffic (million tonnes)Imports of gems and jewellery (US$ billion)
Notes: * - provisional till August 2018, ^CAGR till FY18
^CAGR 7.97%
India is a major importer of gems and jewellery as well.
India’s total gems and jewellery imports rose from US$ 11.63 billion
in FY05 to US$ 31.52 billion in FY18, thereby registering a
compound annual growth rate (CAGR) of 7.97 per cent.
India’s imports of gems and jewellery stood at US$ 11.98 billion in
April – August 2018.*
10. For updated information, please visit www.ibef.orgGems and Jewellery10
SHARE OF VARIOUS SEGMENTS OF GEMS AND
JEWELLERY IN TOTAL EXPORTS
72.55%
29.57%
6.03%
1.32%
10.35%
0.68%
4.36%
24.86%
Cut and Polished diamonds Gold jewellery
Gold medallions and coins Coloured gemstones
Silver jewellery Pearls and Synthetic Stones
Rough diamonds Others
Share of various segments in total gems and jewellery exports
during FY 2017-18
India exports of gems and jewellery are composed of a variety of
items like cut and polished diamonds, gold and silver jewellery, gold
medallions and coins, coloured gemstones, pearls and synthetic
stones, rough diamonds etc.
Cut and polished diamonds account for the highest share of 72.55
per cent in total gems and jewellery exports as India exports 75 per
cent of the world’s polished diamonds.
Gold jewellery accounts for the second highest share of 29.57 per
cent followed by others with a share of 24.86 per cent and silver
jewellery with a share of 10.35 per cent.
Rough diamonds account for 4.36 per cent of the total gems and
jewellery exports.
Source: GJEPC
11. For updated information, please visit www.ibef.orgGems and Jewellery11
EXPORT AND IMPORT OF GOLD JEWELLERY
India is one of the largest gold jewellery exporters of the world and it
exports to around 160 countries.
In FY18, India’s gold jewellery exports stood at US$ 9,673.23 million
and imports stood at US$ 279.01 million.
India’s gold jewellery exports stood at US$ 5.12 billion and imports
stood at US$ 118.59 million in April - August 2018.*
Mostly high-end jewellery or machine-made jewellery is imported
usually from Middle East or South East Asia.
Visakhapatnam port traffic (million tonnes)Gold jewellery imports and exports
Source: GJEPC
Notes: * - provisional till August 2018
1,020.00
2,100.00
4,546.01
576.96
365.58
290.43
272.68
279.01
118.59
7.90
10.03
13.04
8.37
9.90
8.56
8.72
9.67
5.12
0
2
4
6
8
10
12
14
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19*
Imports of gold jewellery (US$ million)
Exports of gold jewellery (US$ billion)
14. For updated information, please visit www.ibef.orgGems and Jewellery14
Companies are indulging in expansion to more and more cities as well as expanding across the value chain.
Retailers are focusing on opening exclusive showrooms especially in Tier I cities to attract the urban
customers.
Kalyan Jewellers is planning to open three showrooms as a part of its expansion plans in Oman.
Malabar Gold & Diamonds to create history by inaugurating 11 showrooms in a single day in 6 countries.
Companies have also started providing financial facility to their customers who cannot afford to pay the whole
amount at once.
EMI payments for jewellery; certain companies like Caratlane are providing EMI at zero interest.
Majority of the players in the Indian market have started selling jewellery online; for example Malabar Gold,
Tanishq, Tribhovandas Bhimji Zaveri, PC Jeweller, etc.
The growth of online jewellery is driven by increasing internet penetration rates, growth in high net worth
individuals’ population and availability of low online jewellery prices.
Some companies have also tied up with e-commerce companies like Amazon India for selling their jewellery;
for example Joyalukkas.
Online sales are expected to account for 1-2 per cent of the fine jewellery segment.
Companies are also giving buy back option to customers on jewellery within certain days after the purchase
and based on certain terms and conditions.
Companies have also started selling customised jewellery for customers who prefer to have their jewellery
altered as per their own preference; for example Malabar Gold.
STRATEGIES ADOPTED
Expansion and opening of
exclusive showrooms
Finance facility
Online selling by gems
and jewellery retailers
Buyback guarantee on
gold jewellery
Customised jewellery
Source: Company websites, Media sources, Aranca Research
Companies such as PC Jewellers, PNG Jewellers, Popley and Sons, are planning to introduce a virtual-reality
(VR) experience for their customers. The customer will have to wear a VR headset, through which they can
select any jewellery, see the jewellery from different angles and zoom on it to view intricate designs.
Virtual Reality
16. For updated information, please visit www.ibef.orgGems and Jewellery16
GROWTH DRIVERS OF GEMS AND JEWELLERY
SECTOR IN INDIA
Source: News Articles, WCG report Gold 2048: The next 30 years for gold
Growing demand
Population Demographics Rising gold demand Government initiatives
India’s middle class
population is expected to
increase to 1,250 million in
2048 from 270 million in
2018.
India’s rich population is
expected to increase to 310
million in 2048 from 30
million in 2018.
India’s demand for gold
reached 737.5 tonnes in
2017 and 338.7 tonnes
between January-June
2018.
Gold Monetisation Scheme
to reduce the country’s
reliance on gold imports to
meet the domestic demand.
Proposed jewellery park in
Navi Mumbai at 25 acre
land and alloted 25,000 sq.
ft land for jewellery park in
West Bengal.
Rapidly increasing middle
class population has lead to
increase in demand of gold.
Proposed policy to help
increase the gold supply
from local refineries to 80
per cent in the next few
years from current 40 per
cent.
17. For updated information, please visit www.ibef.orgGems and Jewellery17
INCREASING MIDDLE CLASS POPULATION IS
EXPECTED DRIVE GROWTH IN THE FUTURE
Source: World Gold Council
5%
9%
17%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2015 2020 2030
Visakhapatnam port traffic (million tonnes)India’s share of middle class consumption in the world India’s current middle class population stands at about 200-250
million and is expected to exceed 500 million by 2025.
The increasing middle class population symbolises an increase in
income of the population; and income is a major driver of demand for
gold and jewellery in India.
Income levels are the most significant long-term determinant of
consumer gold demand: holding all else equal, a one per cent rise in
income leads to a one per cent rise in gold demand.
As income rises, so does savings and Indians prefer buying gold with
their savings as they consider gold as an important form of
investment.
Also, during festivals like Diwali and Dhanteras as well as during
weddings and other significant celebrations, people in India tend to
spend a major amount of money on gold and other jewellery, all of
which are expected to drive demand of gold in the future.
18. For updated information, please visit www.ibef.orgGems and Jewellery18
HIGH GOLD DEMAND IN INDIA ACTS AS A MAJOR
DRIVER FOR GROWTH AND OPPRTUNITY
1,001.71
974.02
914.15
958.58
833.45
857.24
666.09
737.50
338.70
0
200
400
600
800
1,000
1,200
2010 2011 2012 2013 2014 2015 2016 2017 2018*
Source: World Gold Council
Visakhapatnam port traffic (million tonnes)Gold demand in India (tonnes) India has always been a major country with respect to gold demand.
Gold accounts for a major part of India’s total gems and jewellery
imports.
In 2017, India’s gold demand reached 738 tonnes which averaged up
to 840 tonnes over the last 10 years. Gold demand was 338.7 tonnes
between January to June 2018.
Rural purchases are expected to boost India’s gold demand in 2018,
supported by growth in farmer’s income.
Notes: * - Data from January - June 2018
19. For updated information, please visit www.ibef.orgGems and Jewellery19
GOVERNMENT INITIATIVES AND REGULATORY
FRAMEWORK…(1/2)
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.
The government would notify a new limit for reporting about transactions in gold and other precious metals
and stones to authorities, to avoid the parking of black money in bullion.
Demonetisation
The Goods and Services Tax (GST) which was rolled out in July 2017 was in favour of the gems and
jewellery sector.
The Government of India has levied 3 per cent Goods and Services Tax (GST) on gold, gold jewellery, silver
jewellery and processed diamonds and 0.25 per cent on rough diamonds.
The Goods and Services
Tax (GST)
In the Union Budget 2018-19, a proposal to cut down corporate tax of companies with annual revenues of up
to Rs 250 crore (US$ 38.62 million) to 25 per cent is expected to lead to increased investment and
employment generation in the gems and jewellery sector.
Union Budget 2018-19
Source: Union Budget 2018-19, Media sources, Aranca Research
The Government of India has permitted 100 per cent Foreign Direct Investment (FDI) in the sector under the
automatic route.
FDI Policy
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.
Corporate Tax Rate
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.
Gold spot exchange
The Bureau of Indian Standards (BIS) has revised the standard on gold hallmarking in India from January
2018. The gold jewellery hallmark will now carry a BIS mark, purity in carat and fitness as well as the unit’s
identification and the jeweller’s identification mark. The move is aimed at ensuring a quality check on gold
jewellery.
BIS Hallmarking Scheme
20. For updated information, please visit www.ibef.orgGems and Jewellery20
GOVERNMENT INITIATIVES AND REGULATORY
FRAMEWORK…(2/2)
Source: Press Information Bureau, World Gold Council, Media sources, Aranca Research
Mr Arun Jaitley, Minister of Finance, Government of India, launched the Gold Monetisation Scheme in
November 2015. This scheme enables individuals, trusts and mutual funds to deposit gold with banks and
earn interest on the same in return.
The designated banks accept gold deposits under the Short Term (1-3 Years) Bank Deposit as well as
Medium (5-7 years) and long (12-15 years) Term Government Deposit Schemes.
The Government of India launched the Sovereign Gold Bond Scheme. This scheme enables the Reserve
Bank of India (RBI) to issue gold bonds denominated in grams of gold individuals in consultation with Ministry
of Finance.
This scheme provides an alternative to owning physical gold. It is aimed at keeping a check on imports of
gold.
A jewellery park worth Rs 50 crore (US$ 7.8 million) is to be set up in Mumbai by the Government of India
where local handmade workers and factories will be relocated to develop their trade, improve their work
environment and standard of living.
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 jewellery park in at
Ghansoli in Navi-Mumbai on a 25 acres land with about more than 5000 jewellery units of various sizes
ranging from 500-10,000 square feet. The overall investment of Rs 13,500 crore (US$ 2.09 billion).
The Government of India has inaugurated two Common Facility centres , one at Visnagar and second one at
Palanpur. Gem Jewellery Export Promotion Council (GJEPC) has plans to open two more CFCs at Amreli and
Ahmedabad. GJEPC also plans to set up a CFC at Thrissur, Kerala. Thrissur being a major jewellery cluster it
would be suitable to set up a CFC to encourage in production and quality of manufacturing jewellery by creating
awareness to modern machines to small units in and around Thrissur.
A total of 200 small and medium manufacturers will receive access to the CFCs.
Common Facility Centres
(CFCs)
Jewellery Park
Sovereign Gold Bond
Scheme
Gold Monetisation
Scheme
21. For updated information, please visit www.ibef.orgGems and Jewellery21
INCREASING FDI INFLOWS INTO THE SECTOR
FDI inflow in gem and jewellery^ sector (US$ billion) Cumulative Foreign Direct Investment (FDI) in diamond and gold
ornaments in India between April 2000- June 2018 stood at US$ 1.15
billion.
The Government of India permitted 100 per cent FDI in the sector
through the automatic route.
Source: DIPP
Notes: ^ - Diamond and gold ornaments, * - till June 2018
Cumulative from April 2000-June 2018
0.02 0.04
0.05
0.04
0.26
0.08
0.12
0.23
0.02
0.30
0.34
0.39
0.43
0.70
0.77
0.90
1.13 1.15
0.10
0.30
0.50
0.70
0.90
1.10
1.30
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19*
Annual FDI Inflow
23. For updated information, please visit www.ibef.orgGems and Jewellery23
KEY INDUSTRY ASSOCIATIONS
Gems and Jewellery Export Promotion Council of India
(GJEPC)
Address: P & S Corporate House, Plot No. A-56,
Road No. 1, 6th Floor,
Near Tunga International, Midc, Andheri (East)
Mumbai – 400093
Phone: +91 22 67382727/ 8879001898
E-mail: info@gjf.in
Address: Office No. AW 1010, Tower A,
G Block, Bharat Diamond Bourse,
Next to ICICI Bank, Bandra-Kurla Complex, Bandra - East
Mumbai - 400 051
Phone: +91 22 26544600
Fax : 91 - 22 - 26524764
Email: ho@gjepcindia.com
Website: www.gjepc.org
All India Gems and Jewellery Trade Federation (GJF)
25. For updated information, please visit www.ibef.orgGems and Jewellery25
GLOSSARY
CAGR: Compound Annual Growth Rate
FDI: Foreign Direct Investment
FY: Indian Financial Year (April to March)
GOI: Government of India
INR: Indian Rupee
US$: US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number
26. For updated information, please visit www.ibef.orgGems and Jewellery26
EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2004–05 44.95
2005–06 44.28
2006–07 45.29
2007–08 40.24
2008–09 45.91
2009–10 47.42
2010–11 45.58
2011–12 47.95
2012–13 54.45
2013–14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
Q1 2018-19 67.04
Year INR Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
Source: Reserve Bank of India, Average for the year
27. For updated information, please visit www.ibef.orgGems and Jewellery27
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