- India's gems and jewellery sector contributes around 13-15% to India's total merchandise exports and employs over 4.64 million people. It also contributes around 6-7% to India's GDP.
- The overall net exports of gems and jewellery from India stood at US$ 35.59 billion in FY2016-17, registering a growth of 9.07% over the previous year. Exports of cut and polished diamonds grew by 10.24% during this period.
- India is the world's largest cut and polished diamond exporter, exporting over 90% of its output. It also exports around 75% of the global polished diamond supply.
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
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
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.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
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
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
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
2. Table of Content
Executive Summary……………….….…….3
Advantage India…………………..….……..4
Market Overview and Trends……….……..6
Porter’s Five Forces Analysis…………..…13
Strategies Adopted………….……..………14
Growth Drivers and Opportunities…..…...16
Industry Associations……………...……...25
Success Stories……………..……………..22
Useful Information……….......…………….27
3. For updated information, please visit www.ibef.orgGems and Jewellery3
India’s gems and jewellery sector has been contributing around 13-15 per cent over the past five years to
India’s total merchandise exports and employs over 4.64 million employees.
The sector contributes about 6-7 per cent to India’s Gross Domestic Product (GDP).
The overall net exports of gems and jewellery stood at US$ 35.59 billion during FY2016-17 registering a
growth of 9.07 per cent over FY 2015-16.
Exports of cut and polished diamonds registered a growth of 10.24 per cent; gold jewellery registered a
growth of 1.92 per cent, while silver jewellery registered a growth of 35.87 per cent during FY2016-17.
India is the largest manufacturer of cut and polished diamonds in the world and exports 93 per cent of its
production.
India exports 75 per cent of the world’s polished diamonds as of 2016.
India’s share in the global diamond market is 60 per cent in value terms and 90 per cent in volume terms.
Today, 12 out of 14 diamonds sold in the world are either polished or cut in India.
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$ 54.58 billion of which 55 per cent is accounted by the unorganised sector.
India’s gems and jewellery imports increased at a compound annual growth rate (CAGR) of 7.84 per cent
from US$ 11.63 billion in FY2004-05 to US$ 28.78 billion in FY2016-17.
EXECUTIVE SUMMARY
Contribution to GDP and
Employment
Robust growth in
exports
Diamonds processing
and exports
Market Size
Import trends
Source: GJEPC, Media sources, Aranca Research
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
Notes: FDI – Foreign Direct Investment
The cumulative foreign direct investment (FDI)
in diamond and gold ornaments between April
2000 and June 2017 stood at US$ 961.62
million.
Domestic companies are also increasingly
investing in India by expanding their business.
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.
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 2016.
Gold demand in India stood at 666.1 tonnes
during 2016.
India’s overall gems and jewellery demand is
also quite high. India imported gems and
jewellery worth US$ 28.78 billion during FY
2016-17.
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
13.50
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
Source: GJEPC, Media sources
Visakhapatnam port traffic (million tonnes)Net exports of gems and jewellery (US$ billion)
Notes: * - Data from April-August 2017, CAGR – Compound Annual Growth Rate.
CAGR 7.06%
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.
Net exports of gems and jewellery from India rose at a compound
annual growth rate (CAGR) of 7.06 per cent between FY05 and
FY17.
The net exports rose from US$ 15.66 billion in FY2004-05 to US$
35.51 billion in FY 2016-17.
The overall net exports stood at US$ 35.51 billion during FY 2016-17
registering a growth of 8.83 per cent over FY2015-16.
The exports stood at US$ 13.50 billion between April-August 2017.
UAE, US, Russia, Singapore, Hong Kong, Latin America and China
are the biggest importers of Indian jewellery.
US, Hong Kong and UAE accounted for 75 per cent of the total gems
and jewellery exports from India during FY 2016-17.
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
9.24
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Source: GJEPC
Visakhapatnam port traffic (million tonnes)Exports of cut and polished diamonds (US$ billion)
Notes: * - Data from April-July 2017, CAGR – Compound Annual Growth Rate.
CAGR 6.13%
India’s exports 93 per cent of its cut and polished diamonds
produced.
India exports 75 per cent of the world’s polished diamonds.
Today, 12 out 14 diamonds sold in the world are either cut or
polished in India.
India’s exports of cut and polished diamonds rose from US$ 11.16
billion in FY2004-05 to US$ 22.78 billion in FY 2016-17, thereby
registering a compound annual growth rate (CAGR) of 6.13 per cent.
India exported US$ 9.24 billion worth of cut and polished diamonds
between April-August 2017.
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
12.41
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
Source: GJEPC
Visakhapatnam port traffic (million tonnes)Imports of gems and jewellery (US$ billion)
Notes: * - Data from April-August 2017, CAGR – Compound Annual Growth Rate.
CAGR 7.84%
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 FY2004-05 to US$ 28.78 billion in FY 2016-17, thereby registering
a compound annual growth rate (CAGR) of 7.84 per cent.
India’s imports of gems and jewellery stood at US$ 12.41 billion
between April-August 2017.
10. For updated information, please visit www.ibef.orgGems and Jewellery10
SHARE OF VARIOUS SEGMENTS OF GEMS AND
JEWELLERY IN TOTAL EXPORTS
52.74%
20.19%
12.52%
0.97%
9.31%
0.58%
3.47%
0.22%
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 FY2016-17
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 52.74
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 20.19 per
cent followed by gold medallions and coins with a share of 12.52 per
cent and silver jewellery with a share of 9.31 per cent.
Rough diamonds account for 3.47 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
660
400
400
1,020
2,100
4,546
577
366
290
273
110
5,687
8,851
9,755
7,901
10,029
13,038
8,367
9,904
8,557
8,722
2,844
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18*
Imports of gold jewellery Exports of gold jewellery
India is one of the largest gold jewellery exporters of the world and it
exports to around 160 countries.
India’s gold jewellery exports grew from US$ 5,687 million in FY08 to
US$ 8,722 million in FY17.
India’s gold jewellery exports stood at US$ 2,844 million between
April-August 2017 and imports stood at US$ 110 million during the
same period.
India’s gold jewellery exports highly exceed its imports as can be
seen from the graph.
Mostly high-end jewellery or machine-made jewellery is imported
usually from Middle East or South East Asia.
Virtually imports do not consist of hand made jewellery as that is
India’s area of expertise.
About 50 per cent of jewellery exports are plain gold jewellery sets or
chains made in Mumbai, Kolkata and other cities from Southern India
and exported mainly to UAE, Hong Kong and Singapore; 30 per cent
are in the form of diamond jewellery mainly manufactured in Mumbai
and exported to US, UAE and Hong Kong; and remaining 20 per cent
precious and semi-precious gem jewellery manufactured in western
Indian states like Rajasthan and Gujarat and exported to UAE and
UK.
Visakhapatnam port traffic (million tonnes)Gold jewellery imports and exports (US$ million)
Source: GJEPC
Notes: * - Data from April-August 2017, CAGR – Compound Annual Growth Rate.
13. For updated information, please visit www.ibef.orgGems and Jewellery13
PORTER’S FIVE FORCES FRAMEWORK ANALYSIS
Low – Bargaining power of suppliers
is low as the value of orders is quite
high and the rates are usually fixed.
Bargaining Power of Suppliers
Low – Gems and jewellery do not
have any substitute products that can
be used for the same purpose or
having the same value.
Threat of Substitutes
High – Competitive rivalry in this
sector is very high as there are a
large number of players with similar
products and the customers do not
have a switching cost.
Competitive Rivalry
High – Threat of new entrants is low
as it is not very difficult to set up a
jewellery business; there aren’t any
restrictions over entrants as such.
Threat of New Entrants
Low – Buyers do not have a
bargaining power as the price of gold
is market regulated and therefore it is
fixed. Also, prices of other gems and
stones is also fixed by the sellers and
is usually similar across sellers,
Bargaining Power of Buyers
Positive Impact
Neutral Impact
Negative Impact
15. For updated information, please visit www.ibef.orgGems and Jewellery15
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.
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.
Retailers in India have started selling their jewellery online. 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.
Majority of the players in the Indian market have started selling jewellery online; for example Malabar Gold,
Tanishq, Tribhovandas Bhimji Zaveri, PC Jeweller, etc.
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
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 1 per cent rise in
income leads to a 1 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
1,002
974
914
959
833
857
666
298
0
200
400
600
800
1,000
1,200
2010 2011 2012 2013 2014 2015 2016 2017*
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.
India’s gold demand was the second highest in the world from 2012-
2016.
In 2010 and 2011, India’s gold demand was the highest in the world.
In 2016, India’s gold demand stood at 666.1 tonnes; and 298.4
tonnes between January-June 2017.
Notes: * - Data from January-June 2017
19. For updated information, please visit www.ibef.orgGems and Jewellery19
INCREASING FDI INFLOWS INTO THE SECTOR
Cumulative FDI inflow from April 2000 – June 2017
(US$ million)
167.54
251.04
282.00
301.90
338.15
390.76
433.32
696.48
772.05
895.96
961.62
0
200
400
600
800
1,000
1,200
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18*
Cumulative Foreign Direct Investment (FDI) in diamond and gold
ornaments in India FY08-17 rose at a compound annual growth rate
(CAGR) of 21.43 per cent.
Cumulative FDI between April 2000-June 2017 in the sector rose
from US$ 167.54 million as of March 2008 to 961.62 million as of
June 2017.
The Government of India has permitted 100 per cent FDI in the
sector through the automatic route.
The International Institute of Diamond Grading and Research
(IIDGR) has invested US$ 5 million for expanding its synthetic
diamond testing facility in Surat.
The Indian Commodity Exchange (ICEX), backed by the Anil Ambani
Group has launched the first ever futures contract for diamonds in
the world, to create many new opportunities for diamond players.
Source: DIPP
Notes: * As of June 2017
CAGR 21.43%
20. For updated information, please visit www.ibef.orgGems and Jewellery20
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 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.
In the Union Budget 2017-18, the Government of India, offered tax cuts for the middle class and other
sections of 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.
GOVERNMENT INITIATIVES AND REGULATROY
FRAMEWORK…(1/2)
Demonetisation
The Goods and Services
Tax (GST)
Union Budget 2017-18
Source: Union Budget 2017-18, 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
21. For updated information, please visit www.ibef.orgGems and Jewellery21
GOVERNMENT INITIATIVES AND REGULATROY
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.
Gold Monetisation
Scheme
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.
Sovereign Gold Bond
Scheme
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.
Jewellery Park
The Government of India has approved the setting up of four common facility centres (CFCs) in Ahmedabad,
Amreli, Visanagar and Palanpur at a total cost of INR 16.15 crore (US$ 2.52 million); of which the CFCs at
Palanpur and Visanagar have already been inaugurated.
These CFCs are expected to provide access to a common pool of state-of-the-art machinery and equipment
at a cheaper rate to small and medium diamond manufacturers; and it will also be used for transfer of
technology and r e-skilling and training of existing artisans.
A total of 200 small and medium manufacturers will receive access to the CFCs.
Common Facility
Centres
23. For updated information, please visit www.ibef.orgGems and Jewellery23
TRIBHOVANDAS BHIMJI ZAVERI (TBZ)
186.19
216.13
259.33
285.21
303.62
258.55
265.41
0
50
100
150
200
250
300
350
FY11 FY12 FY13 FY14 FY15 FY16 FY17
Source: Company website, Moneycontrol
Tribhovandas Bhimji Zaveri is one of India’s oldest and most trusted
jewellery brand.
It is one of India’s largest jewellery retailers.
The company started operation in 1864 and currently has 33 stores
across India.
The company was the first one to offer buyback guarantee on gold
jewellery, the first one to promote light weight jewellery, and the first
to offer certified solitaire diamonds.
The company’s revenue has grown at a Compound Annual Growth
rate (CAGR) of 6.09 per cent over FY11-17.
Its revenue has grown from US$ 186.19 million in FY 2010-11 to
US$ 265.41 million in FY 2016-17.
Visakhapatnam port traffic (million tonnes)TBZ Revenue (US$ million)
CAGR 6.09%
24. For updated information, please visit www.ibef.orgGems and Jewellery24
PC JEWELLER
629.84
837.71
1,001.14
1,150.53
1,336.56
-
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1,600.00
FY13 FY14 FY15 FY16 FY17
Source: Company website, Moneycontrol
PC Jeweller is one of India’s major retail j ewellers.
The company opened its first showroom in 2005 in New Delhi and as
of 2017 it has 79 showrooms across 62 cities and 18 states.
The company has grown at strong compound annual growth rate of
20.70 per cent over FY13-17.
Its revenue grew from US$ 629.84 million in FY2012-13 to US$
1,336.56 in FY 2016-17.
Visakhapatnam port traffic (million tonnes)PC Jeweller Revenue (US$ million)
CAGR 20.70%
26. For updated information, please visit www.ibef.orgGems and Jewellery26
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)
28. For updated information, please visit www.ibef.orgGems and Jewellery28
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$: US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number
29. For updated information, please visit www.ibef.orgGems and Jewellery29
EXCHANGE RATES
Year INR Equivalent of one US$
2004–05 44.81
2005–06 44.14
2006–07 45.14
2007–08 40.27
2008–09 46.14
2009–10 47.42
2010–11 45.62
2011–12 46.88
2012–13 54.31
2013–14 60.28
2014-15 61.06
2015-16 65.46
2016-17 67.09
Q1 2017-18 64.46
Year INR Equivalent of one US$
2005 43.98
2006 45.18
2007 41.34
2008 43.62
2009 48.42
2010 45.72
2011 46.85
2012 53.46
2013 58.44
2014 61.03
2015 64.15
2016 67.21
H1 2017 65.73
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Source: Reserve bank of India, Average for the year
30. For updated information, please visit www.ibef.orgGems and Jewellery30
DISCLAIMER
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