INTRODUCTION

 GEMS AND JEWELLERY SECTOR

CLASSIFICATION

GEMS AND
JEWELLERY
SECTOR

POLISHED GOLD AND SYNTHETIC

GEMS STONES
DIAMONDS JEWELLERY STONES
 Export Opportunities IN INDIA
 India is the fastest-growing jewellery market in the
world.
 New markets in Europe and Latin America.
 Growing demand in south Asian and far East countries
 Exports expected to grow from $15.5 billion in 2005 to
over $25 billion by 2010.
 2004-05 2005-06 2006-07 2007-08

Source: www.gjepc.com
Gems and Jewellery Sector in India
 The domestic market is estimated to be around US$ 16.1 billion and the
All India Gems and Jewellery Trade Federation, a nodal agency
representing 300,000 jewellers across the country, expects it to grow to
US$ 25.2 billion in two to three years.
 The country is also the largest consumer of gold in the world. It consumes
nearly 800 tonnes of gold that accounts for 20 per cent of world gold
consumption, of which nearly 600 tonnes go into making jewellery.
 India is also emerging as the world's largest trading centre for gold
targeting US$ 16 billion by 2010. The industry has the best skilled
manpower for designing and producing high volumes of exquisite
jewellery at low labour costs.
 4% of the global Gems and Jewelery market .
COMPETITION AREA

Diamond: China, Belgium

Gemstones: Sri Lanka, Thailand
Gold Jewellery: China, Italy, France, Hong Kong,
Mexico, Thailand, Switzerland
FORECAST
 INDIA AND CHINA TOGETHER AN EXPORT OF $10 BILLION
 RETAIL BUSSINESS WOULD EMERGE
 GJEPC PROVIDING A GREAT HELP TO EXPORTER TO
INTRODUCE INDIAN GEMS IN INTERNATIONAL MARKET
 EXIM POLICY AND SUBMISION OF DOCUMENTS A GREAT
DEAL OF HELP PROVIDED
 4% OF INTERNATIONAL MARKET HERE IN INDIA
 18% OF INDIA’S EXPORT OUT OF $15.5 BILLION
 LARGEST CONSUMER OF GOLD JEWELLERY ABOUT 20%
 The sector is expected to grow at 40% p.a. to $2.2 billion by 2010
 Exports expected to grow from $15.5 billion in 2005 to over $25
billion by 2010
POLICIES
 1990 GOLD ACT ABOLISHED
 1993 NRI GRANTED THE RIGHTS FOR BRINGING THE GOLD
 TRADE POLICY 2004-09 ALLOWED IMPORT OF UED
JEWELLERY FOR ITS FURTHER USE
 JEWELLERY EXPORTED ON CONSIGNMENT BASIS
 Cutting and polishing of gems and jewellery treated as
manufacturing for the purposes of exemption under Section 10A of
the Income Tax Act
 Levy of two per cent excise duty on premium branded Jewellery.
 100 per cent Export Oriented Units (EOUs) and units in the Export
Processing Zones (EPZs)/Special Economic Zones (SEZs), enjoy
a package of incentives and facilities, which include duty free
imports of all types of capital goods, raw material, and
consumables in addition to tax holidays against export.
 Currently 74% FDI in Mining, 100% proposed.
GROWTH OF THE SECTOR

 BETWEEN 2003-2007
 FIG IN US$ MILLION
ITEMS  2002-03 2003-04 2004-05 2005-06 2006-07
 

Cut & Polished Diamonds  6187  5972  7111  8627  11182

Coloured Gemstones  203  183  192  178  193

Gold Jewellery  1150  1167  1513  268  3813

Pearls  3  3  4  4  3

Non-Gold Jewellery  56  64  85  99  129

Synthetic Stones  2  2  1  1  1

Costume/Fashion Jewellery  10  10  10  10  -

sales to Foreign Tourist  12  13  13  18  -

TOTAL  7622  7414  8929  11620  15320

Exports to Rough
 157  142  241  536  358
Diamonds

Net Exports  7779  7556  9170  12156  15678

MARKET PLAYERS
 Reliance retail-400 to 500 outlets in India
 Presence of DAMAS in India
 SWAROVSKI the global crystal manufacturer
 The Gitanjali Group
 Vaibhav Gems Ltd.
 Classic Diamond (India) Ltd.
 Shrenuj & Company Ltd.
 Goldiam international Ltd.
 Su-raj Diamonds & Jewellery Ltd.
 Rajesh Exports Pvt. Ltd.
STRENGTH

 About one million craftsmen are associated

with this industry. Their skills can be utilized for
designing and making modern Jewellery
 Availability of abundance of cheap and skilled
labor in India.
 Presence of excellent marketing network
spread across the world.
 Supportive government industrial/ EXIM policy
WEAKNESS

 Small firms lacking technological/ export

information expertise.
 Low productivity compared to labor in
china, Thailand and Sri Lanka.
 As the major raw material requirements
need to be imported, companies normally
stock huge quantities of inventory
resulting high inventory carrying costs
OPPORTUNITY

 New markets in Europe & Latin America

 Growing demand in South Asian & Far
East countries.
 Rupee value depreciating resulting in a
windfall increase in the profitability.
 Industry moving from a phase of
consolidation
THREATS

 China, Sri Lanka and Thailand's entry in

small diamond segment
 Infrastructure bottlenecks, absence of
latest technology
 Unusual increase in the prices of gold
and rough diamond
CONCLUSION
 Based on the findings, the report estimates that
worldwide jewelry sales will rise from $146
billion in 2005 to $185 billion in 2010 and $230
billion in 2015. However, it stresses that if the
industry as a whole focuses on “growing
demand for jewelry as a category” and
“strengthening industry-level and enterprise-
level capabilities” in the “next 12-18 months,”
sales could reach $280 billion in 2015,
registering a CAGR of 6.7 percent.
References

 www.gjepc.org
 www.dgft.delhi.nic.in
 www.eximpolicy.com
PRESENTORS

 RIMPY NARULA BM-A-01

 PRATEEK GUPTA BM-A-02
 ARCHIT MALHOTRA BM-A-03