India's gems and jewellery sector is one of the largest in the world contributing 29 per cent to the global jewellery consumption. The market size of the sector is about US$ 60 billion as of 2017 and is estimated to reach US$ 100-110 billion by 2021-2022. The sector is home to more than 300,000 gems and jewellery players, contributes about 6-7 per cent to India’s Gross Domestic Product (GDP) and employs over 4.64 million employees.
India's gems and jewellery sector contributes about 15.71 per cent to India’s total merchandise exports. The overall net exports of gems and jewellery stood at US$ 35.51 billion during FY17 registering a compound annual growth rate (CAGR) of 7.06 per cent over FY05; whereas gems and jewellery imports increased at a CAGR of 7.84 per cent from US$ 11.63 billion in FY05 to US$ 28.78 billion in FY17.
India is the largest manufacturer of cut and polished diamonds in the world and exports 75 per cent of the world’s polished diamonds. Today, 12 out of 14 diamonds sold in the world are either polished or cut in India.
India is the largest consumer of gold in the world. Rising middle class population and increasing income levels are the key drivers for the demand of gold and other jewellery in India. Gold demand in India rose 9.13 per cent year-on-year to 726.9 tonnes in 2017. Also, the Government of India has permitted 100 per cent Foreign Direct Investment (FDI) in the sector under the automatic route. The Bureau of Indian Standards (BIS) has revised the standard on gold hallmarking in India from January 2018, to include a BIS mark, purity in carat and fitness as well as the unit’s identification and the jeweller’s identification mark on gold jewellery. The move is aimed at ensuring a quality check on gold jewellery.
Click here to Download File (Size: 1.34 MB )