Gems and Jewellery is an important emerging sector
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 US$ 11639.26 million (provisional) for the period April-October 2007. The Gems & Jewellery Sector witnessed a growth of 25.80 per cent during this period of the financial year 2006-07, with a total gem and jewellery exports of US$ 11948.46 million as against US$ 9536.62 million in the corresponding period of the previous year.
Composition of Exports
Gold Jewellery Exports: This segment registered a growth of 1.28 per cent with the exports of US$ 3861.57 million in 2005-06 as against US$ 3812.88 million in 2004-05.
Cut and Polished Diamonds: The share of this segment in the exports stood at US$ 8160.35 million (provisional) for the period April-October 2007
Coloured Gemstones: This segment accounted for exports worth US$ 146.69 million (provisional) for the period of April-October 2007. This segment grew by 21.05 per cent in 2005-06 at US$ 233.32 million as against US$ 192.75 million in 2004-05.
ITEMS
April-October'07 (Provisional)
April-October'07 (Same ports as current year)
% Growth / decline over previous Year
Rs. In Crores
US $ in Million
Rs. In Crores
US $ in Million
Rs.
US $
Cut & Pol Diamonds
33351.37
8160.35
28796.04
6309.39
15.82
29.34
(Quantity in Lakh Carats)
249.64
216.37
15.38
Gold Jewellery - D. T. A.
7332.83
1794.19
7147.03
1565.95
2.60
14.58
SEZ / EPZ
5700.27
1394.73
5281.85
1157.29
7.92
20.52
Total
13033.10
3188.92
12428.88
2723.24
4.86
17.10
Coloured Gemstones
599.53
146.69
573.28
125.61
4.58
16.78
Others
585.68
143.30
430.16
94.25
36.15
52.04
Net Exports
47569.68
11639.26
42228.37
9252.49
12.65
25.80
Exports of Rough Diamonds
1263.70
309.20
1296.75
284.13
-2.55
8.82
(Quantity in Lakh Carats)
151.73
229.96
-34.02
Total Exports
48833.38
11948.46
43525.12
9536.62
12.20
25.29
NOTE : 1) Data of Cut & Pol Diamonds include export of CPD (Bonded W.H) also. 2) Figures for April/October 2007 are provisional and subject to revision . i) Data for October'2007 does not included figures from Chennai MEPZ,Bangalore 3) Above figures does not include data for Costume / Fashion Jewellery and Sales to foreign tourists.
Top Export Destinations
United States (28 percent)
Hong Kong (21 per cent)
UAE (15 per cent)
Singapore (9 per cent)
Belgium (8 Per cent)
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.
Import duty on several categories of gems and jewellery has been reduced in the 2007-08 budget. The duty has been reduced on cut and polished diamonds to 3 per cent from 5 per cent, on rough synthetic stones to 5 per cent from 12.5 per cent and on raw corals to 10 per cent from 30 per cent.
Import of gold of 8 carat and above allowed under the replenishment scheme subject to the import being accompanied by an Assay Certificate specifying the purity, weight and alloy content.
Duty free import entitlement of consumables for metals other than gold and platinum at 2 per cent of the FOB value of exports during the previous financial year.
Duty free import entitlement of commercial samples at US$6509.32. Duty free re-import entitlement for rejected jewellery at 2 per cent of the FOB value of exports.
Cutting and polishing of gems and jewellery treated as manufacturing for the purposes of exemption under Section 10A of the Income Tax Act.
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.
