Gems & Jewelry Industry
The Gems and Jewelry contributes around to India’s total merchandise exports. Learn how NEEM Scheme is helping them achieve more.
As far as the global gems and jewellery industry is concerned, India is the most sought after manufacturing destination. The reasons for the same are many, firstly India has the biggest skilled manpower that is engaged in processing jewellery. We also have the world’s largest diamond cutting and polishing hub.
The best part is that the government also offers tremendous support to the Industry as it is highly export centric and brings in foreign exchange.India exports 75 per cent of the world’s polished diamonds, as per statistics from the Gems and Jewellery Export promotion Council (GJEPC). India’s Gems and Jewellery sector has been contributing in a big way to the country’s foreign exchange earnings (FEEs). As mentioned earlier in the paragraph the Indian government takes keen interest in the sector and allows 100% FDI through automatic route.
The entire planet knows that Indians are the biggest consumers of Gold, hence goldsmiths are highly revered as a skilled professional in the country.Gold demand in India rose to 737.5 tonnes between 2017 where as the Indian gems and jewellery exports stood at US $32.71 billion in FY 2018.
During the same period, exports of cut and polished diamonds stood at US $23.73 billion, hence contributing about 72.55 per cent of the total gems and jewellery exports that happened through India. Exports of gold coins and medallions stood at US $1,917.09 million and silver jewellery export stood at US $3,385.65 million during FY 2018.
UAE, US, Russia, Singapore, Hong Kong, Latin America and China are the biggest importers of Indian jewellery.
The Domestic demand of Indian Gems and jewellery is no less. There are two types of buyers in the country, one who demand the traditional designs and other the modern one who desire the trending and international designs. Amazingly the Indian Jewellery Industry is more than capable to meet the demands of the markets. Be it the domestic market or International, this is perhaps the only sector in Indian Industry which can meet its demands in terms of variety,product options and product quality.
The Government of India would notify a new limit for reporting about transactions in gold and other precious metals and stones to authorities, to avoid the parking of black money in bullion.
The Bureau of Indian Standards (BIS) has revised the standard on gold hallmarking in India from January 2018. The gold jewellery hallmark will now carry a BIS mark, purity in carat and fitness as well as the unit’s identification and the jeweller’s identification mark. The move is aimed at ensuring a quality check on gold jewellery.
The Government of India has planned to set up a Common Facility Center (CFC) at Thrissur, Kerala.
The Gems and Jewellery Export Promotion Council (GJEPC) signed a Memorandum of Understanding (MoU) with Maharashtra Industrial Development Corporation (MIDC) to build India’s largest jewellery park in at Ghansoli in Navi-Mumbai on a 25 acres land with about more than 5000 jewellery units of various sizes ranging from 500-10,000 square feet. The overall investment of Rs. 13,500 crore (US $2.09 billion).
The future of this industry is very bright and the country is noticing some very big retail giants coming in to picture. Coupled with constant flow of investments this industry is all set to contribute a lot to the Indian Economy.