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Gem Jewelry

Gems and Jewellery made-in-India gaining back some lost gleam

The exports of Gem and jewelry seem to be back on track. Gold jewelry exports in May recorded a growth of 158 per cent at Rs 3,911 crore against Rs 1,513 crore in April.

Cut and polished diamond, exports increased by 18 per cent to Rs 4,528.76 crore (Rs 3,847 crore) in May.

Total exports including coloured gemstones and rough diamonds increased by 55 per cent at Rs 8,887 crore (Rs 5,749 crore).

India is rising as the world’s largest trading centre and B2B platform of gold, gems and jewelry selling offers aiming US$ 16 billion by 2010. The industry has a rich resource pool of skilled manpower for designing and producing high volumes of fine jewelry at low costs.

Diamonds made-in-India

Only few Indians are aware of the fact that India has the largest diamond cutting and polishing centre in the world. Simply put, 9 of the 10 diamonds sold world over is cut and polished in India. In 2007-08, India exported cut and polished diamonds worth US$14.18 billion in 2007-08.

Booming Retail Sector

The Indian gems and jewelry sector so far, was an unorganized sector. However, with new age customer becoming more brand conscious and quality conscious as well, the demand for branded jewelry is gaining fresh impetus. As per Mckinsey report, the demand for branded jewelry will be worth US$ 2.2 billion by 2010.

Also, the government has permitted 51 percent FDI in single brand retail outlets, alluring both global and local players to this sector.

As per the report published by Technopak Advisors on the Changing Retail Landscape in India, the jewelry and watches market is worth US$ 13.70 billion. And it is estimated to register a 12 per cent growth by 2012, reaching US$ 23.60 billion.

The World Gold Council recently informed that the size of India's gold coin market is worth US$ 2.11 billion.

In an attempt, to enhance the demand during recession, jewelers are introducing novel designs in light weight jewelry.

India Gems and Jewelry Exports

As per the figures released by the Gem & Jewelry Export Promotion Council (GJEPC), the exports of gems and jewelry, registered a growth of 1.45 per cent during 2008-09, driven by gold jewelry exports. This includes medallions and ornaments. In 2007-08, the country exported gems and jewelry worth US$ 20.8 billion.

Gems and jewelry amounting to US$ 17.79 billion was exported during April 2008 to February 2009. Notably, rough diamond exports stood at US$ 712.09 million, an increase of 43 per cent over the corresponding period previous year.

The United Arab Emirates (UAE) was the largest importer of gems and jewelry made-in-India in 2008-09; this was followed by Hong Kong and the US. Of the India’s total merchandise exports the gems and jewelry made-in-india accounted for 13 per cent.

The export industry mainly consists of small-to-large units set up in various special economic zones (SEZs) delivering diamond-studded jewelry.

Government schemes for export promotion

The Indian government has introduced favorable foreign trade policies to boost the booming gems and jewelry industry of India

* Foreign direct investment (FDI) up to 100% is allowed in gems and jewelry through the automatic route

* The government has reduced import duty on platinum and has exempted coloured precious gems stones from customs duty.

* Import of Rough, semi-precious stones are duty-free.

* Import of Metals other than gold and platinum are duty-free up to 2 per cent of freight on board (f.o.b) value of exports.

* Rejected jewelry imported is duty-free up to 2 per cent of f.o.b value of exports.

* Establishing of SEZs and gems and jewelry parks to boost investment in the sector.

* In May 2007, the import duty on polished diamonds, abolished.

* The government has raised the limit value of jewelry parcels for export through foreign post office (including via speed post) from US$ 50,000 to US$ 75,000

• The export of coloured gemstones on a batch basis has been permitted.

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Gems and Jewellery made-in-India gaining back some lost gleam
The exports of Gem and jewellery, seem to be back on track. Gold jewellery
exports in May recorded a growth of 158 per cent at Rs 3,911 crore against
Rs 1,513 crore in April.