Introduction
The gems and jewellery industry of India contributes 7% to India’s Gross Domestic Product (GDP). The industry employs more than five million skilled and semi-skilled workforces in the country. The sector contributes about 15.71% of India’s total merchandise exports, accounting for the third largest commodity share. During 2023-24 (until February 2024), the gems and jewellery exports to reach US$ 29.61 billion with a decline in growth of 15.31% from 2022-23.
The Government of India, along with all the stakeholders of the gems and jewellery sector, is well committed to aggressively promoting exports, identifying challenges, and addressing them with necessary interventions, assisting exporters, especially SME units, and exploring new markets while consolidating existing ones. With strong growth prospects, the government of India has also declared the gems and jewellery sector as a focus area for export promotion.
India majorly exports cut and polished diamonds, lab-grown synthetic diamonds, coloured gemstones, synthetic stone, plain and studded gold jewellery, silver and platinum jewellery, imitation jewellery and articles of gold, silver and others. Western Region is a key exporting hub for the gems and jewellery industry contributing almost 74.66% of the total exports in 2022-23. Surat, a city of Gujarat state in the western region of India has more than 450 organised jewellery manufacturers, importers, and exporters, making it the jewellery manufacturing hub of the world.
Export Trend
As per 2022 statistics, India’s gems and jewellery exports account for about 4.3% of the world’s total exports, making it the sixth-highest exporter in the globe. The country is ranked first in cut and polished diamonds, silver jewellery, and synthetic diamonds/stones with 26.5%, 29.8%, and 29% share of the total world’s exports, respectively. India is also ranked fourth in coloured gems stones with a 5.1% share of the total world’s exports. The overall gross exports of gems & jewellery stood at US$ 37.46 billion in FY23. The overall gross exports of cut & polished diamonds stood at US$ 22.04 billion in FY23.
In FY24 (until February 2024), the gross exports of gems and jewellery stood at US$ 29.61 billion.
The Department of Commerce has set a gems and jewellery export target of US$ 75 billion in coming years. The department is committed to enabling exporters by providing a conducive trade environment by bringing up trade-friendly policies to boost exports. The top gems and jewellery export destination countries in 2023-24 (until February 2024) were the USA (US$ 9.1 billion), UAE (US$ 7.4 billion), Hong Kong (US$ 6.4 billion), Belgium (US$ 1.9 billion), Israel (US$ 723.63 million), Thailand (US$ 659.42 million), Singapore (US$ 624.04 million), UK (US$ 536.86 million), Switzerland (US$ 350.57 million), and Australia (US$ 273.64 million).
Export Destinations
India exports gems and jewellery to the USA, Hong Kong, UAE, Belgium, Singapore, Israel, Thailand, the UK, Switzerland, and Netherlands etc. USA was the largest importer of Indian jewellery in 2023-24 (until February 2024), valued at US$ 9.13 billion, compared to US$ 12.54 billion in 2022-23. Hong Kong and the UAE were also among the largest export destinations for India at US$ 6.35 billion and US$ 7.42 billion in exports contributing about 21.12% and 24.65% of the total exports during 2023-24 (until February 2024), respectively.
During 2022-23, some of the key export destinations like Belgium, Singapore, Switzerland, and the Netherlands had shown steep growth in gems and jewellery imports from India over the pre-pandemic year 2021-22. This can be mainly attributed to the return to pre-pandemic ways of consumer spending and the increase in retail store sales after the removal of all COVID-19 restrictions. Additionally, the opening of the India Jewellery Exposition (IJEX) centre in Dubai, and the signing of agreements with key export destinations such as UAE, Australia, Israel, the UK, and Canada, among others should continue to drive exports in the future.
Government Initiatives
The Government of India (GoI) has taken various measures to promote investment for the growth of the sector, such as the gold monetization scheme revamp, reduction in import duty of gold, reduction in import duty on cut & polished diamonds from 7% to 5% and implementing mandatory hallmarking. Under various other schemes, about 90% of assistance is provided by the government of India for setting up common production/processing centres, design centres, and testing plug & play facilities. Marketing hubs/exhibition centres by associations are also receiving the Government of India’s assistance of up to 80% of the project cost. Additionally, the government provides funding support for lending collateral-free credit and offers credit guarantee cover up to ~ US$ 240 thousand (Rs. 2 crore) to MSMEs under the Credit Guarantee Scheme (CGS) facilitated by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Over 90% of units in the gems and jewellery sector are MSMEs.
The Government of India has recently laid out four steps to grow the gems and jewellery industry in the country. The focus is to be given to the creation of patented designs to increase value, diversification of the exported products, collaboration with other nations for cost-effective methods and promotion of lab-grown diamonds. In addition to this, the GJEPC (Gems Jewellery Export Promotion Council) arranges several trade shows, buyer-seller meets and expositions to increase the exposure of Indian goods.
Government Body
Gems and Jewellery Export Promotion Council (GJEPC)
The GJEPC was formed in 1966 and has over 10,000 members associated with it to date. The objectives and roles of the council are promoting the brand India, connecting government and trade, upholding diamond integrity, spreading education, innovation and infrastructure, etc.
Note: Current Rs. Equivalent of one US$ - Rs. 83.31
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