Gems and jewellery form an integral part of Indian tradition. A legacy passed from one generation to another. The components of jewellery include not only traditional gold but also diamond, platinum accompanied by a variety of precious and semi-precious stones.
The Indian gems and jewellery market is set to cross US$ 26 billion by 2012, on the back of improving lifestyle and availability of skilled labour, as per a report ‘Indian Gems and Jewellery Market – Future Prospects to 2011’, by RNCOS.
India, the largest consumer and importer of gold in the world, is projected to import around 500-550 tonnes of gold in 2010, as per AnjaniSinha, head of the Indian Bullion Market Association (IBMA).
As per the credit rating agency Crisil, the diamond industry in India is predicted to remain stable during 2010-11 due to improved prices and steady demand.
The Gem and Jewellery Export Promotion Council (GJEPC) predicts that the gems and jewellery exports would witness a rise of around 5 per cent year-on-year during FY11.
Although, the market is highly dominated by the unorganised players, with increase in consumer income and economic prosperity, the future of organised retail in India is very bright. The braded jewellery sector is estimated to reach US$ 2.2 billion by 2010 on the back of quality consciousness among target consumers, as per a McKinsey report.
The Gem and Jewellery Export Promotion Council's (GJEPC) performance figures for the financial year 2009-10 showcased the true resilience of the Indian industry over the last year whence it continued with its consistent plans of building trading relations and penetrating newer markets.
In its bid to enhance the market strategy, a gems and jewellery special economic zone (SEZ) sprawling over 40 acres with an investment of US$ 441.1 million is being planned to be set up by Gold Souk, the jewellery mall developer. The company plans to have residential apartments named Gold Souk City, apart from having gems and jewellery manufacturers from Thailand and Dubai who will open their units in India.
Total net imports of gems and jewellery in April 2009- June 2010, touched US$ 81.08 billion (provisional figures) as compared to US$ 56.43 billion posed in the corresponding period in the previous year, according to GJEPC.
India is one of the largest bullion markets in the world. It has been until now, the undisputed single-largest Gold bullion consumer.
Gold imports stood at 739 tonnes during April 2009-March 2010. According to SanjivBatra, Chairman and Managing Director, MMTC Ltd - the country's top gold importer, stated that the company is likely to import 200 tonnes of the precious metal in the current fiscal year.
The net imports of gold bars during April-June 2010 was estimated at US$ 11.36 billion (provisional), ascompared to US$ 16.66 billion the first quarter of last fiscal.
In the world official gold holdings ratings, India stood at 11th position with 557.7 tonnes of gold reserve as of June 2010, as per the World Gold Council.
India is the largest consumer of gold jewellery in the world, accounting for about 20 per cent of global gold consumption.
According to a release by the World Gold Council, during the first quarter of 2010 (Jan-Mar) India was ranked as the strongest performing market on the back of increase in consumer demand. The country registered an increase of 698 per cent to 193.5 tonnes.
India is the world's largest diamond cutting and polishing centre in the world.
Surat is India's diamond processing hub, contributing over 80 per cent of the country's diamond processing industry with annual revenue of around US$ 13.03 billion.
India is the world's largest diamond cutting and polishing centre in the world. It accounts for 60 per cent value share, 82 per cent by carats and 95 per cent share of the world market by number of pieces.It is the third largest consumer of polished diamonds after the US and Japan.