Unleash Your Inner Sparkle: Gem and Jewelry Exports that Shine!"

India's gold and diamond trade emerged as a significant contributor to the country's economy and exports in February 2021. Accounting for approximately 7.5% of India's Gross Domestic Product (GDP) and 14% of its total merchandise exports, the gems and jewelry sector proved its value in driving economic growth. Recognizing its potential, the Indian government designated the industry as a focus area for export promotion, implementing various measures to attract investment, upgrade technology and skills, and establish a strong global presence for "Brand India."

In line with this, the government introduced policies to encourage foreign direct investment (FDI) by permitting 100% FDI in the sector under the automatic route. This eliminates the need for prior approval from the Reserve Bank or the government. Additionally, the signing of the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) in March 2022 has further boosted the prospects of the Indian gems and jewelry industry. The CEPA provides the industry with duty-free access to the UAE market, and as a result, the Gems Jewellery Export Promotion Council (GJEPC) aims to triple its exports to the UAE, showcasing the immense growth potential and opportunities for the sector.

MARKET SIZE

India’s gems and jewellery market size was at US$ 78.50 billion in FY21. Growth in exports is mainly due to revived import demand in the export market of the US and fulfilment of orders received by numerous Indian exhibitors during the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC.

India’s gems and jewellery exports reached US$ 39.14 billion in 2021-22, a 54.13% rise from the previous year. In December 2022, India’s gems and jewellery exports was at US$ 2.56 billion. The Government of India is aiming at US$ 100 billion in jewellery export in the next five years (until 2027), up from US$ 35 billion in 2020.

INVESTMENTS/DEVELOPMENTS

Cumulative FDI inflows in diamond and gold ornaments stood at US$ 1,213.06 million between April 2000-March 2022, according to the Department for Promotion of Industry and Internal Trade

Some of the key developments in this industry are listed below:

• In February 2022, GJPEC organized a four-day Internal Jewellery Show Signature 2022, where 850 exhibitors had participated and there were more than 400 international vistors, buyers, and delegations from the US, UAE, Egypt, Nepal, Uzbekistan, and Bangladesh.
• In September 2021, Malabar Group invested Rs. 750 crore (US$ 100 million) in a gold refinery and jewellery unit in Hyderabad.
• In May 2021, GJEPC and Embassy of India, Morocco, co-hosted the ‘India Global Connect’ to better understand the present business climate in the gems and jewellery sector and seek trade prospects for manufacturers, exporters and importers from both countries.
• The GJEPC will organise its first International Gems and Jewellery Show (IGJS) outside the country, in Dubai, from August 14-16, 2021. It will also hold a five-day physical exhibition—India International Jewellery show (IIJS-2021)—in Bengaluru from September 15-19, 2021, in a first such event outside Mumbai. GJPEC sources said that >250 buyers have registered and >95 stalls have been booked for Dubai IGJS 2021. There will be 150 booths having products such as plain gold, gold-studded jewellery, diamond-studded jewellery, silver jewellery, loose diamonds and gemstones.
• In June 2021, Tanishq launched antimicrobial jewellery in certain markets as a pilot project. Currently, the range is available in stores across Chennai and Lucknow, with further launches planned in Kolkata and Hyderabad followed by other key markets. Antimicrobial jewellery is being offered in categories such as chains and rings, which feature special-coated layers that self-disinfect the surface and impede any further microbial growth.
• In June 2021, the World Gold Council and Gem and Jewellery Export Promotion Council signed an agreement to promote gold jewellery in India. Under the agreement terms, both partners will jointly fund a multi-media marketing campaign that would aim to increase awareness, relevance and adoption of gold jewellery amongst Indian consumers, especially in millennials and Gen Z.
• In April 2021, Malabar Gold & Diamonds announced to invest Rs. 1,600 crore (US$ 214 million) in FY22 to launch 56 stores, of which 40 would be in India and 16 across global markets. In India, stores will be opened in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Maharashtra, Delhi, West Bengal, Uttar Pradesh, Odisha and Kerala. In July 2021, the company announced hiring of >5,000 staff, across its retail operations, brand headquarters and regional offices in the country.
• In March 2021, Joyalukkas collaborated with IBM Global Business Services to design, develop and deploy a new cloud-native e-commerce platform across 11 countries including India, the UAE, the US, the UK, Singapore, Malaysia, Bahrain, Qatar, Saudi Arabia, Kuwait and Oman.
• In February 2021, Reliance expanded its e-commerce arm, JioMart, to jewellery with silver coins of 5gm and10 gm, and gold coins of 1gm, 5gm and 10gm.
  • Reliance's in-house jewellery brand, Reliance Jewels, which has ~93 flagship showrooms and 110 shop-in-shops in 105 cities in the country, will fulfil the orders for the new segment.
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GOVERNMENT INITIATIVE

• India has signed an FTA with the UAE which will further boost exports and is expected to reach the target of US$ 52 billion.
• The Government has reduced custom duty on cut and polished diamond and colored gemstones from 7.5% to 5% and NIL.
• Revised SEZ Act is also expected to boost exports of gems and jewellery.
• In September 2021, Ms. Anupriya Patel, Minister of State for Commerce and Industry said that reforms such as the revamped gold monetisation scheme, reduction in import duty of gold, hallmarking and others would help the industry grow. The market export target is US$ 43.75 billion for 2021.
• The government has reduced import duty for Gold & Silver (from 12.5% to 7.5%) and Platinum & Pallidum (from 12.5% to 10%) to bring down the prices of precious metals in the local market.
• Indian Government made hallmarking mandatory for Gold Jewellery and Artefacts. A period of one year is provided for implementation i.e. till January 2021..
  • In December 2020, All India Gem and Jewellery Domestic Council (GJC) welcomed the decision to make hallmarking compulsory from June 2021 in a phased manner; urged the government to examine the key concerns of the industry for smooth implementation of the initiative.
  • Hallmarking of gold jewellery is set to begin from June 15, 2021. In view of the COVID-19 pandemic, the government accepted request of stakeholders to provide jewellers some more time to prepare for implementation and resolve issues. Earlier, the date of implementation was June 01, 2021.
• In December 2020, the Finance Ministry notified that the amendment under Prevention of Money Laundering Act (PMLA), notifying dealers in precious metals and stones, will maintain records of cash transactions worth Rs. 10 lakh (US$ 13.61 thousand) or more cumulatively with a single customer.

Major Hubs (city) for Gems and Jewellery

• Surat

• Mumbai

• Jaipur

• Thrichor

• Nellore

• Delhi

• Hyderabad

• Kolkata

CONTACT

GJEPC

The Gems and Jewelry Export Promotion Council (GJEPC) is an apex body in India that represents the interests of the gems and jewelry industry. It is a non-profit organization established by the Ministry of Commerce and Industry, Government of India. The GJEPC plays a crucial role in promoting and supporting the growth of the Indian gems and jewelry sector both domestically and internationally. Here are some key aspects of the GJEPC:

1. Objectives: The primary objective of the GJEPC is to promote exports of gems and jewelry from India. It works towards enhancing the competitiveness of Indian exporters, providing them with a platform to showcase their products, and creating opportunities for networking and business collaborations. The GJEPC also focuses on promoting the image of Indian gems and jewelry in the global market.
2. Services and Support: The GJEPC offers a range of services and support to its members and the industry as a whole. This includes market research and intelligence, trade facilitation, organizing trade shows and exhibitions, participation in international fairs, skill development programs, and training initiatives. The council also assists in resolving industry-related issues and provides a platform for industry stakeholders to voice their concerns.
3. International Promotion: The GJEPC actively promotes Indian gems and jewelry in international markets. It conducts promotional campaigns, buyer-seller meets, and trade delegations to various countries. The council also organizes the India International Jewelry Show (IIJS), which is one of the largest jewelry trade shows in Asia. These efforts aim to showcase the diversity, craftsmanship, and quality of Indian gems and jewelry to global buyers.
4. Policy Advocacy: The GJEPC acts as a representative and advocate for the industry with the government and other relevant authorities. It works towards influencing policy decisions, addressing industry concerns, and promoting a favorable business environment for the gems and jewelry sector. The council actively engages in dialogue with policymakers, regulatory bodies, and trade associations to shape policies that benefit the industry.
5. Training and Skill Development: The GJEPC places significant emphasis on skill development and training initiatives. It conducts programs to upgrade the skills of workers in various areas such as diamond cutting and polishing, jewelry designing, gemstone identification, and manufacturing techniques. The council collaborates with industry experts and educational institutions to provide quality training and ensure the availability of a skilled workforce in the industry.

The GJEPC's efforts have played a crucial role in establishing India as one of the leading players in the global gems and jewelry industry. It continues to work towards the growth and development of the sector by supporting exporters, promoting Indian jewelry worldwide, and advocating for the industry's interests.

 

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