Gems Jewellery Sector
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The gems and jewellery sector in India was valued at about USD 50 billion in 2015 and is projected to grow to USD 80-85 billion by 2018, representing 29% of global jewellery consumption. Gujarat is a key player, processing 85% of India's jewellery and 72% of the world's processed diamonds, supported by favorable government policies and growing middle-class demand. Government initiatives include 100% FDI in specific areas and the establishment of diamond bourses to enhance international trading capabilities.
Gems Jewellery Sector
- 1. Gems & Jewellery Sector Profile
- 2. Gems & Jewellery Industry: India Scenario Gems & Jewellery Industry: India Scenario
- 3. 3 Gems & Jewellery sector : India Scenario The domesticgems &jewellerymarketwas estimated to bearound USD 50billionin 2015and is predictedto growat a rateof 13 % perannumbyto reach USD 80-85 billionmark by2018 Source:,ASSOCHAM and TARI Report. ASSOCHAM-YES BankReport,GJEPC,FICCI-AT Kearney Report, Technopak Analysts,ONICRA,MillenniumPost • Indian Gems and Jewellery industry is one of the largest in the world with a share of 29% in global jewellery consumption • India is the world’s largest cutting and polishing centre for diamonds • With an 8% share, Indiahas become the world's thirdlargest diamond consumer • India is the largest consumer of gold, accounting for nearly 29% of the total world gold consumption • Establishing ‘Diamond Bourses’to makeIndia a international trading hub • Gold jewellery forms around 80% of the Indian jewellery market • There are more than 3,00,000 Gems & Jewellery players across the country, with majority being small players • Increasing base of consumers as well as growth of HNIs that will contribute to the continued fast pace growth of organized jewellery retail in India • It provides employment to nearly 2.5 million people with the potential to generate employmentof 0.7 to 1.5 million over the next five years • Major mining companies such as Rio Tinto, De Beers and Alrosa have decided to participate in the Indian Diamond Trading Centre (IDTC) - that will allow Indian manufacturers to directly source roughdiamonds from the miners thereby reducingoperational costs
- 4. 4 Gems & Jewellery sector : India Scenario Exports & Imports India’s gems&jewelrysectoris secondhighestcontributorto theIndian commodityexports with a share of 13 % • The total exportsofGems and Jewellery forin FY 2014- 15 was around USD 40 billion • Cut and polished diamonds - USD 23.16 billion • Gold Jewellery - USD 6.24 billion • Gold Medallions & Coins – USD 2.8 billion • SilverJewellery - USD 2 billion • Colored Gemstones - USD 0.45 billion • Others(Pearls &SyntheticStones) – USD 1.5 billion • Gems and Jewellery industry is highly dependent on imports ofraw materials, ofwhichrough diamonds account foralmost 50 percent ofthe imports • India exports 95 percent ofthe world’s processed diamonds • India is also one ofthe largest importerand consumerof silverin the world 33.20% 21.30%1.10% 38.20% 6.20% Major Countries of Gems and Jewellery Export OECD Countries OPEC Countries Eastern Europe Developing Countries Others Source: GJEPC, Technopak Analysts, DGCI&S (Kolkata) ; Exchange Rate : 1 USD = Rs. 62.23 ( Jan 2015)
- 5. 5 Gems & Jewellery sector : India Scenario Growth and Demand Drivers The jewellery market in India is expected to growat a Compound Annual GrowthRate (CAGR) of15.95 % over the period 2014-2019 Source: Research and Markets, GJEPC, Onicra, Millennium Post Increasing purchasing and spending power With the growing economy, spending power of the people is also rising. India’s new income growth will come from the surging middle class and entrepreneurs, leadingto growth of jewellery demand in India Changing demographics India has one of the youngest population in the world. The rise of the working woman and the metro-sexual man with preferences for wearable jewellery continuesto provide growth Entry of New players in retail sector It is anticipated that large investments of about USD 1 billion in the coming years would be made by large retailers/brands which would catalyze the growth of the industry, set higher standards and create value across the valuechain. Traditional Domestic Demand Tradition of buying jewellery during important festivals like Diwali and Dhanteras and during weddings; great attractiveness of gold as an investmentoption ForeignDemand The sector is the second largest foreign exchange earner in the Indian economy; contributing ~15% to the total export earnings of the country
- 6. 6 Gems & Jewellery sector : India Scenario Government Initiatives and Interventions The governmenthas implementedsuch an FDIpolicywhichallows 100%FDIand74%in exploration andminingof diamondsand precious stones and 100%forgold and silverand minerals'exploration, mining, metallurgyandprocessing. MerchandiseExports from IndiaScheme(MEIS)forexport of specifiedgoods to specifiedmarkets - replaces multiple schemes with differentconditions for eligibility andusageofscrips AdvanceProcurement/ Replenishmentof Precious Metals from NominatedAgencies Relaxation in gold import norms Special Notified Zones forconsignmentimportandexportof rough diamonds Regulatoryframework and taxationregime to encourageinternational miningcompanies to sell their rough diamonds directly in India Enhancingtheeaseof doingbusiness byreducingthenumberof mandatory documents required for import and export to three andsimplificationof forms GJEPCappointedtheNodalAuthorityforscrutinizingtheapplications forenlistment of laboratories forexport of cut andpolished diamonds forcertification/gradingandre-import Exporters of gemsand jewellerycan import/ procure dutyfreeinputformanufacturingproducts for export Gems and Jewellery SkillCouncilof Indiato train overfourmillionpersons till2022forskilled manpower
- 7. 7 Gems & Jewellery Industry: Gujarat Scenario Gems & Jewellery Industry: Gujarat Scenario
- 8. 8 Gems & Jewellery sector : Gujarat Scenario Gujarat has thehighest share(nearly85percent)in the total national Jewelleryproductionand accounts for72 percentof the world’s shareof processeddiamonds.Surathas 65%sharein India's diamond trade. • Gujarat accountsforabout 80 percent of diamonds processed and 95 percent of diamonds export from India • Almost 8 out of10 diamonds in the worldare processedin Gujarat • 90 percent ofthe total diamondsin Gujarat are processedby about 10,000 diamond unitslocated in and around Surat • Gujarat is also internationally renowned forthe production ofuniquehand-madesilverornaments (85 percent oftotal silver Jewellery production of India) • A gold jewellery manufacturingclusterin Ahmedabad has a productivity ofaround 50 gm of production /day, highest in the country • Gujarat's Gems & Jewellerysectoris expectedto growat a rate of 15 percent Source: Industries Commissionerate - Government of Gujarat, IBEF Some of the leading players in Gujarat Diamond processing and trading unit are spread across the State in cities such as Surat, Ahmedabad, Palanpur, Bhavnagar, Valsad and Navsari
- 9. 9 Gems & Jewellery sector : Gujarat Scenario Growth Drivers The growth of this industry is primarilyattributedto theincreasein thedemand driven by expansion of themiddleclass andsupportfrom thegovernmentin increasingthecompetitiveness GrowthDrivers of Gems & Jewellery Sector in Gujarat Presence across the whole of valuechain Availability of skilled craftsmen Cost Competitive -ness Rising disposable income & consumer demand Development of SEZ’s and Gems & jewellery Parks Favorable Government Policies • Gujarat has identified Gems & Jewellery sector as one of the thrust areas for development • One of the important factors contributing to the growth has been the development of SEZ’s by the state • A single-product, SEZ specially dedicated to gems and Jewellery with available infrastructure, Gujarat Hira Bourse (GHB), is located close to Surat city • There is also a multi product SEZ, Surat SEZ (SurSEZ), which also aids the growth of gems and jewellery sector
- 10. 10 Gems & Jewellery sector : Gujarat Scenario Gems &Jewellery Clusters To leverageon the progressiveindustrialsectorof thestate, thegovernmenthas initiated a “Clusterdevelopment” modelto increasecost competitiveness and efficiency through collaborativeefforts and knowledge sharing Region Activity Surat Diamond Processing, Jewellery Palanpur Diamond Processing Ahmedabad Diamond Processing, Gold & Silver Jewellery Bhavnagar Diamond Processing Navsari Diamond Processing Rajkot Gold & Silver Jewellery Khambhat Gemstone(Agate) Valsad Jewellery Gems & Jewellery Clusters in Gujarat Surat Hira Bourse (SHB) in Surat handles import of rough diamonds worth INR 30,000 crore per annum
- 11. 11 Gems & Jewellery sector : Gujarat Scenario Assaying & Hallmarking Centers in Gujarat Center Name District GujaratGold Centre Ahmedabad Kesar Hallmarking Centre Ahmedabad MMTC Ltd. Ahmedabad Parkar Gold Ahmedabad Shradha Assaying & Hallmarking Centre Ahmedabad GujaratGold Centre Vadodara National Center for Hallmarking Surat VG Gold Assaying& Hallmarking Centre Rajkot Assaying & Hallmarking centres in Gujarat Rajkot is internationally known for its unique hand made gold and silver ornaments which constitute 85% of the total jewellery production in India” Ahmedabad Surat Vadodara Rajkot
- 12. 12 Gems & Jewellery sector : Gujarat Scenario Diamond Research and Mercantile (DREAM) City Surat is the largest diamond processing cluster in the world and is known as the “Diamond Polishing hub of India” with more than 3500 diamond processing units • The SDB Diamond Boursewould be the second diamond trading hub based at Surat. • It would be spread across100 acres with availability of15 Million Sq.ft. built up area encompassing10,000offices for national &internationaltraders • It would be set up in next 4 years with approximateinvestment of Rs. 125,000 crore • SDB is likely to generate additional business worthRs. 90,000 crore annually. DREAM City – A Smart City, is being developed close to Surat. It would be spread over 2,000 acres, and will house an International Diamond Trading Hub and a Diamond Bourse Source: GJEPC - http://www.gjepc.org/sdb.php
- 13. 13 Gems & Jewellerysector : Gujarat Scenario Educational Infrastructure Entrepreneurship merged with skilled craftsmanship is the key enabling factor for Gems & Jewellery sector in Gujarat 0 20 40 60 80 100 120 140 160 Gujarat/India Antwerp/Belgium Shenzen/China Telaviv/Israel Labour cost per carat in USDMajor institutions offering courses specific to Gems & Jewellery Indian Diamond Institute (IDI), Surat National Institute of Fashion Technology (NIFT), Gandhinagar National Institute of Design (NID), Ahmedabad Graduate and Diploma Level programmes offeredby Indian Diamond Institute include: • Diamond Sorting and Grading • Gemology • Jewellery Designing, Manufacturing and Appraising • Jewellery Business Management • Gem Diamond Identification and Grading Indian Diamond Institute and International Institute of Diamond Grading &Research India Pvt. Ltd. in Surat have been allowed to import diamonds forcertification /grading of diamonds without any import duty and re-export of the same
- 14. 14 Gems & Jewellery sector : Gujarat Scenario Investment Opportunities Gems and Jewellery is one of the fastest growing Industries in the country. Following are some of the identified projects to venture: Jewellery Fabrication & Retail • Diamond studded jewellery • Gold jewellery • Silverjewellery • Platinum jewellery • Studded Gold &Silver jewellery chainsand ornaments • Hand made ornaments Infrastructure Development • Jewellery Parks • Modern Jewellery units • Educational institutes focusing on Gems & Jewellery sector • Establishing Hallmark Center • Gemology institutewith testing facility Tools &Machinery • Diamond blade • Diamond cutting &tools • Diamond tools &wheels • Gem cutting &processing unit • TechnologyUpgradation
- 15. 15 FORADDITIONALINFORMATIONCONNECTUS @ iNDEXTb -IndustrialExtensionBureau http://www.indextb.com Industries Commissionerate http://www.ic.gujarat.gov.in
- 16. 16 THANK YOU Disclaimer: Industrial Extension Bureau (iNDEXTb), Government of Gujarat has made every attempt to ensure the accuracy and reliability of the information provided in this document. However, the information is provided "as is" without warranty of any kind. iNDEXTb periodically adds, changes, improves or updates the information in this document without any notice. For further clarification kindly get in touch with Industrial Extension Bureau (iNDEXTb), Government of Gujarat.