The gems and jewellery sector contribute around 7% to country’s GDP and 15% to India’s total merchandise export. It employs over 5 mln people. One of the fastest growing sectors, export oriented and labour intensive. India is the world’s largest cutting and polishing centre for diamonds because of its low costs and availability of high-skilled labour. India exports more than 70% of the world’s polished diamonds as per statistics from the GJEPC. India’s Gems and Jewellery sector has been contributing in a big way to the country’s foreign exchange earnings. Government has viewed this sector as a thrust area for export promotion. The Indian Government presently allows 100% FDI in the sector through the automatic route.
However, India’s gems and jewellery sector is one of the largest in the world, contributing 29% to the global jewellery consumption. The sector is home to more than 300,000 gems and jewellery players. Its market size will grow by US$ 103.06 billion during 2020-2023.
Online purchase of Gold & other jewellery have shown significant growth, Hallmarking of this jewellery have given confidence to buyers and end users. Gold monetization and investments schemes are floated from time to time for end users. Investments with lesser value & digital form also becoming popular for small & medium size investors.
India’s demand for gold reached more than 600 tonnes in 2020. India’s gems and jewellery export stood at US$ 29.01 billion in FY20P. During the same period, India exported US$ 18.66 billion worth of cut and polished diamonds, thereby contributing 64% of the total gems and jewellery export.
Organised Retail player have created brand for awareness and grown bigger in terms of footfall & customer confidence.
Road Ahead
This is one of the Sector people stay invested for a long term & traditional values are also driving this sector.
Growth in current scenario would be flattish, but going forward would see growth rate of more than 5 – 6% from FY22 onwards.
BENEFICIARIES: THANGMAYALL, RENAISSANCE GLOBAL, VAIBHAV GLOBAL, RAJESH EXPORTS, TITAN.
