- Gems And Jewellery Industry In India- An Overview :-
    The Gems and Jewellery industry in India is a major sector growing rapidly at an annual growth rate of 15 per cent. According to the All India Gems and Jewellery Trade Federation, an agency with about three lakh jewellers representing across the country, the industry is slated to grow to US$25.2 billion in the next three to four years. The domestic market is valued at around US$ 16.1 billion. The industry is spread over five main segments: cut and polished diamonds, gemstones, gold and jewellery, pearl and synthetic stones, and others, including precious metal jewellery, other than gold, synthetic stones and costume fashion jewellery.
    Globally rated as the largest consumer of gold, India’s consumption of gold accounts for nearly 20% of the world gold consumption, of which six hundred tonnes go only in jewellery making. According to the World Gold Council’s (WGC) recent estimates, the size of India’s gold coin market is worth US$ 2.11 billion.
    Exports is a crucial area of the industry as about 80% of the industry’s turnover is due to the exports. By 2010, India is expected to reach US$ 16 billion in trading gold. During April 2008 to February 2009, Gems and jewellery worth US$ 17.79 billion was exported. Of which, rough diamond exports is worth US$ 712.09 million, an increase of 43 per cent over the last year. According to the estimates of Gem & Jewellery Export Promotion Council (GJEPC), India’s gem and jewellery exports recorded a minimal growth of 1.45 per cent during 2008-09 and stood at US$ 21.1 billion. The growth is driven by the export of gold jewellery and ornaments, whereas, in 2007-08, the value of gems and jewellery exported amounts to US$ 20.8 billion.
    The diamond cutting and polishing sector in India is the largest in the world. As per industry estimates, nine out of ten diamonds sold around the world are cut and polished in India. In 2007-08, the export of cut and polished diamonds amounted to US$ 14.18 billion. Today, the popularity of branded jewellery is on the rise According to the McKinsey report, by 2010, the market for branded jewellery is expected to be US$ 2.2 billion. The sector is even attracting global players due to the government initiative of allowing 51% FDI in single brand retail outlets.
    However, the industry has been hit hard by the global meltdown. According to the estimates of Gems and Jewellery Export Promotion council (GJEPC), in the volume terms, the quantity of both cut and polished diamonds have plummeted by 7% to 402.05 lakh carats in fiscal year ending in March 09. The declining demand from the export oriented countries along with the fall in prices of cut and polished diamonds in the year 2009 has impacted the industry.
    Though, the majority of the Indian gems and jewellery sector is largely unorganised, globally, it is known for skilled manpower who design and create exquisite jewellery at low labour costs.