The Indian gems and jewellery sector plays a significant role in the Indian economy, contributing around 6-7% to GDP. India is the world's largest cutting and polishing centre for diamonds, exporting 95% of the world's diamonds. In FY2014, the sector contributed US$34.7 billion to India's foreign exchange earnings. The sector is expected to grow at a CAGR of 15.95% over 2014-2019. Key products exported are cut and polished diamonds, gold jewellery, color gemstones and pearls. The top export markets are the UAE, Hong Kong and the USA. The sector faces threats from international competition and fluctuations in gold and diamond prices.

1. EXPORT OF GEMS &
JEWELLERY SECTOR
Submitted By ~ Guided By ~
Isha Joshi Prof. Shubhangi Jain
BFT – V semester

2. INTRODUCTION
The Gems and jewelry sector in India
plays a significant role in the Indian
economy
GDP contribution – 6-7%
Focus area for export promotion based
on its potential for growth and value
addition
India is deemed to be the hub of the
global jewellery market because of its
low costs and availability of high-skilled

3. India is the world’s largest cutting
and polishing centre for diamonds
India exports 95 per cent of the
world’s diamonds
Contributes in a big way to the
country's Foreign Exchange Earnings
(FEEs)
Sector is viewed as a thrust area for
export promotion
In FY14, India's gems and
jewellery sector contributed US$
34,746.90 million to the country's
FEEs

4. MARKET
STRUCTURE

5. The Jewellery Market in India is
expected to grow at a CAGR of 15.95
per cent over the period 2014-2019
In December 2014 –
I. The gold jewelry exports were US$
554.45 million
II. silver jewellery exports were US$
148.49 million
 The cumulative foreign direct
investment (FDI) inflows in
diamond and gold ornaments in the
period April 2000-December 2014
were US$ 476 million

6. FY14 saw an increase of 12.65 per
cent in export of cut and polished
diamonds with the segment reaching
US$ 19,635 million.
India imported 163.11 million carats
of rough diamonds worth US$ 16.34
billion and exported 36.46 million carats
of polished diamonds valued at US$
20.23 billion
The country exported gems and
jewellery worth US$ 36.04 billion in
2013.
Also, platinum jewellery could breach
the Rs 2,500 crore (US$ 402.95 million)
mark in FY15

7. GEOGRAPHICAL CLUSTERS

8. SCHEMES

9. Advance Procurement /
Replenishment of Precious Metals
from Nominated Agencies;
Replenishment Authorization for
Gems;
Replenishment Authorization for
Consumables;
Advance Authorization for Precious
Metals

11. Liberalization of import norms by RBI
India has signed a Memorandum of
Understanding (MoU) with Russia to
source data on diamond trade between the
two countries
The Government of India is planning to
establish a special zone with tax benefits
for diamond import and trading in
Mumbai, in an effort to develop the city as
a rival to Antwerp and Dubai, which are
currently the top trading hubs for diamond.

12. The Gems and Jewellery Skill
Council of India is planning to
train over four million persons till
2022 as the sector is facing
shortage of skilled manpower
Setting up of new institutes in
major diamond cutting and
processing centers
100% FDI is approved

13. PRODUCT GROUPS

14. The Product goods are as follows ~
Cut & Polished diamonds
Gold Jewellery
Color Gemstones
Pearls
Non – Gold Jewellery
Synthetic Stones
Costume/Fashion Jewellery
Sales to Foreign Tourists
Rough Diamonds

15. EXPORT MARKET AND
COMPETITORS
USA (28%)
Hong Kong (21%)
UAE (15%)
Singapore (9%)
Belgium (8%)
OTHERs ARE…
Israel, Japan, Thailand, U.K, Switzerland,
Germany, Australia, South Africa

16. EXPORT PERFORMANCE

17. Spotlight on Exports
Indian gems and jewellery are
exported across continents.
In FY 2013–14 - contributed around
US$ 34,993 million to India's FEEs
In FY 2013-14, India exported
polished and cut diamonds valued at
around US$ 19,643 million and
coloured gemstones worth around
US$ 520 million.

18. The key export destinations in
2013-14 were UAE with 35 per cent
of export valued at US$ 12 billion
Hong Kong at 28 per cent with
value of US$ 9 billion
USA at 14 per cent with export
value of US$ 5 billion
In 2014-15 – contribution of US$
39898.81 million in terms of FEEs

19. “Make in India”
GJEPC's thrust areas in alignment with the 'Make in India'
campaign will mainly include implementation of the
turnover taxation system for Indian Diamond Industry and
implementation of Special Notified Zone to facilitate
smooth movement of rough diamonds on consignment basis
by RBI approved overseas diamond miners, in year 1
In the mid-term, GJEPC will champion the mission to
further industry growth and strongly establish India as a
global diamond trading hub

21. SUMMARY OF 2014-15
PERFORMANCE
The overall gross exports of
gems & Jewellery at US$
39898.81 million (Rs.
243885.81 crores) is showing a
decline of 0.62% in dollar terms
and growth of 0.43% in rupee
term as compared to US$
40147.50 million (Rs.
242837.07 crores) for the period
April 2013-March 2014

22. CUT AND POLISHED
DIAMONDS
The overall gross export of Cut
& Polished diamonds at $
23160.18 million (Rs. 141514.28
crores) is showing a decline of
5.46% (-4.50% Rs. term) as
compared to $ 24498.48 million
(Rs. 148185.20 crores) for the
same period of previous year.

23. GOLD & SILVER JEWELLERY
Provisional gross export of Gold jewellery for
the period April 14 - March 15 at US$ 9852.18
million (Rs. 60198.63 crores) shows growth of
17.77% (18.64% Rs. term)
Provisional gross export of Silver Jewellery for
the period April 14 - March 15 at US$ 2054.52
million (Rs. 12583.73 crores) shows growth of
39.29% (41.41% Rs. term)

24. SWOT ANALYSIS

25. STRENGTHS
Large integrated diamond & jewellery players
and having an international presence.
Strong marketing & distribution network.
Strong retail presence in India and in U.S.
Strong brand equity and broad product range
like Gitanjali, Tanishq, Joylukkas, etc
Highly skilled, qualified and motivated
employee.

26. Weaknesses
 There may be conflicts of interest between organized &
unorganized players.
 As the major raw material requirements need to be
imported, companies normally stock huge quantities of
inventory resulting high inventory carrying costs.
 Technology is less improved compared to China and
Thailand’s company.
Opportunities
 New markets in Europe & Latin America.
 Growing demand in South Asian & Far East countries.

27. THREATS
International Competition:-China, Sri Lanka
and Thailand's entry in small diamond jewellery.
Increase in the price of Gold & Diamonds.
Other local competitors. According to the data
97% jewellery sales are by family jewelers.
Threat from producing nation like S.A. & Russia
Fluctuations in Exchange Rate

28. Thank You