GEMS AND JEWELLERY

Gems and Jewellery is an important emerging sector in the Indian Economy. Ranked among
the fastest growing sectors, it is also a leading sector for foreign exchange generation.

Major Segments

The sector comprises of two major segments

Gold

• Comprises around 80 per cent of the Indian jewellery market, balance comprising
fabricated studded jewellery (Diamonds and Gemstones).
• High levels of manufacturing and domestic consumption.

Diamonds

• World's largest cutting and polishing Industry for diamonds.

• Well supported by the banking sector and government policies.
• Export potential for polished diamonds / finished diamond jewellery.

Gems and Jewellery Sector: An Overview

Exports

The net exports of gems and jewellery stood at Rs 44086.41 crores for the period April-
September 2008 . The Gems & Jewellery sector witnessed a growth of 18.41 per cent during
this period of the financial year ,with a total gem and jewellery exports of Rs 46010.69 crores
as against Rs 38856.53 crores in the corresponding period of the previous year(i.e. April-
September 2007).

Composition of Exports

Gold Jewellery Exports: The export of gold jewellery during April- September 2008 was
registered at Rs 9504.51 crores as against Rs 9579.93 during April-September 2007.

• Cut and Polished Diamonds: The share of this segment in the exports stood at Rs
33518.77 crores for the period April -September 2008 as.The exports of the same was
registered at Rs 27174.55 crores during April-September 2007.

• Coloured Gemstones: This segment accounted for exports worth Rs 624.82 crores for
the period of April-September 2008 as against Rs 530.40 crores for the same period
last year. This segment grew by 17.80 per cent in April-September 2008.

ITEMS April-September- April-September-07 % Growth / decline over

08 previous Year
(Same ports as current
(Provisional) year)
Rs. In US $ in Rs. In US $ in Rs. US $
Crores Million Crores Million
Cut & Pol 33518.77 8041.93 27174.55 6613.42 23.35 21.60
Diamonds
*
(Quantity 228.34 203.73 12.08
in Lakh
Carats)

Gold 4275.64 1025.82 5157.85 1255.26 -17.10 -18.28

Jewellery -
D. T. A.
SEZ / EPZ 5228.87 1254.53 4422.07 1076.19 18.24 16.57

Total 9504.51 2280.35 9579.93 2331.45 -0.79 -2.19

Coloured 624.82 149.91 530.40 129.08 17.80 16.14

Gemstones

Others 438.31 105.16 491.50 119.62 -10.82 -12.09

Net 44086.41 10577.35 37776.37 9193.57 16.70 15.05

Exports

Exports of 1924.28 461.68 1080.16 262.88 78.15 75.62

Rough
Diamonds
(Quantity 191.18 121.29 57.63
in Lakh
Carats)

Total 46010.69 11039.03 38856.53 9456.45 18.41 16.74

Exports

NOTE : - Exchange Rate

1) * Data of Cut & Pol Diamonds include export of CPD (Bonded W.H) also.
2. Figures in bracket shows quantity in lakh carats.
3. Figures for April / September '2008 are provisional and subject to revision.
i) Figures doesn't included from Bangalore August & September 2008, Coimbatore, Mumbai
FPO, Chennai Hyderabad, Cochin,MEPZ & SEZ Kolkata month of Sept 2008
4. Above figures does not include data for Costume/ Fashion Jewellery, and Sales to foreign
tourists.

Apr-Sept 2008 1 US$ = Rs. 41.68

Apr-Sept 2007 1 US$ = Rs. 41.09

Top Export Destination

• United States
• Hong Kong
• UAE
• Singapore
• Belgium

Advantage India

• Gems and Jewellery hub

• Rich tradition / heritage of craftsmanship with high level of skills
• Low production costs
• Effective worldwide distribution network for promotion and marketing.
• Diamond polishing capital of the world.
• Manufacturing excellence

Investment Opportunities

• Gemstone Processing (Cutting and Polishing)

• Jewellery manufacturing and retailing
• Jewellery certification
• Branded jewellery

Policy Initiatives

The gem and jewellery industry has responded well to the duty reductions made last year. In
order to encourage value addition and exports Government exempted following

from duty rough cubic zirconia and to reduce the duty on polished cubic zirconia from 10 per
cent to 5 per cent. Similarly, the duty on rough coral will be reduced from 10 per cent to 5 per
cent.

Reduction in net profit rate from 8% to 6% for all assesses engaged in diamond
manufacturing and trading sector under Benign Assessment Procedure.

• Import duty exemption on Rough Cubic Zirconia.

• Reduction of import duty on cut
• Reduction of import duty on Cut and Polished Cubic Zirconia and Rough Coral from 10
per cent to 5 per cent.

Recent Developments

• Shri jairam Ramesh,Hon'ble Minister of State for Commerce led a delegation to Angola
and Namibia.
• A Joint Working Group was formed between Namibia and india to prepare a detailed
plan for long term partnership in the diamond sector.The focus would be on direct
sourcing of roughs from Namibia and on setting u[ of factories and trining Institutes.
 • The delegation in Angola,discussed that ENDIAMA,Diamond mining company would
shortly open an office in India.Angola has invited Indian diamond companies to set up
factories and training institutes in Angola.The Council has invited the President of
Angola as the "Chief Guest for Mines to Market 2009".

Gem and Jewellery Export Promotion Council (GJEPC)

The Gem and Jewellery Export Promotion Council is a representative body of trade. The
following initiatives have been taken by the council in order to enhance competitiveness such
as:

• Preparation of a medium term exports strategy for various sectors including gems and
jewellery by the Ministry of Commerce.
• Exploring the possibility of direct procurement of rough diamonds from mining
countries.
• Promotion of Indian diamonds and jewellery abroad through advertisements, publicity
and participation in international fairs, buyer-seller meets and direct approach to
market retailers.
• Market study through experts in the field to identify new markets.
• Promotion of export of 'hallmark' jewellery from India to assure foreign customers of
quality and purity of jewellery made in India.

Useful Weblinks

• Gem and Jewellery Export Promotion Council