Advantage India
Growing
Demand
* Gold ETF AUM rose from 40 tonnes to 54 tonnes in 2024, signaling increasing retail investor participation.
* Investment demand grew 14% YoY, reaching 76 tonnes in Q4 CY24, even as jewellery demand softened.
* In October 2020, the first edition of IIJS Virtual* recorded >10,000 visitors and a business turnover of ~ Rs. 1,000 crore (US$ 137.31 million).
* In 2022, India ranks first among the top exporters in cut & polished diamonds, and second in gold jewellery, silver jewellery and lab-grown diamonds.
Increasing
Investments
* RBI’s gold purchases surged from 16 tonnes in 2023 to 73 tonnes in 2024, reinforcing confidence in gold reserves.
* Lighthouse, a private equity platform, has made a significant investment of Rs. 284 crore (US$ 34.2 million) in Kushal's, a brand specializing in fashion and silver jewelry.
* In September 2023, Malabar Gold & Diamonds announced to invest Rs. 1,000 crore (US$ 120.4 million) by FY25, the company announced generating 4,000 jobs in Maharashtra.
* Cumulative FDI inflows in diamond and gold ornaments in India stood at Rs. 8,020.38 crore (US$ 1,322.24 million) between April 2000-September 2024, according to the Department for Promotion of Industry and Internal Trade (DPIIT).
Policy
Support
* The Government has permitted 100% FDI under the automatic route** in this sector.
* The sector now has AEO status from the finance ministry, easing export-import processes with quicker cargo release, 50% lower bank guarantees.
* The Government has reduced custom duty on cut and polished diamond and coloured gemstones from 7.5% to 5% and NIL.
* India has 10 special economic zones (SEZ) for gems & jewellery. These zones have more than 500 manufacturing units, which contribute 30% to the country’s total exports. The revised SEZ Act is also expected to boost gems and jewellery exports.
* India has signed an FTA with UAE which will further boost exports and is expected to reach the target of US$ 52 billion.
* India has signed Economic Cooperation and Trade Agreement (ECTA) with Australia.
Attractive
Opportunities
* India’s gold demand in 2025 is projected to remain robust, ranging between 700-800 tonnes despite a 31 per cent increase value-wise in 2024 - World Gold Council.
* India’s gold demand witness a 774.1 tonnes in 2023.
* The gems and jewellery sector represents 0.19% of the total equity inflow for FDI from April 2000 to December 2024.
Tribhovandas Bhimji Zaveri Limited
Tribhovandas Bhimji Zaveri Limited is engaged in the manufacturing/trading and selling of jewellery. The company offers a range of products including pendants, earrings, waist belts, watches, necklaces, bracelets, rings, and bangles. It offers products in categories including diamond and gold. It offers design for a range of cultural requirements including traditional Indian, western, and indo-western. The company offers festival and wedding jewellery, everyday wear jewellery and contemporary jewellery. Its collections include surprise collection, necklace collection and showstoppers collection. It operates approximately 32 stores in over 25 cities across the country. It has manufacturing units for diamond-studded jewellery at Kandivali, Mumbai.
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PC Jeweller Limited
PC Jeweller Limited is engaged in the business of manufacture, retail, and export of jewellery. It offers a range of products including 100% hallmarked gold jewellery, certified diamond jewellery and other jewellery, including silver articles, with a focus on diamond jewellery and jewellery for weddings. It sells jewellery through its online sale portal www.wearyourshine.com. Its jewellery category includes rings, earrings, pendants, mangalsutras, chains and necklaces, bangles and bracelets, and nose pins. It also offers platinum, gemstone, men, and kid's jewellery. It offers jewellery under various brands like PC Jeweller, Blue Nile, PNG Jewellers, Waman Hari Pethe, Asmi, Gili, Sangini, Nirvana, Nakshatra, Kama Jewellery, Flexia Jewellery, Sparkles, Candere, Diaashi Diamonds, Demira, Augrav, Urnish Jewellers, D'amor, Avsar, Ornomart, Dishi Somani, Charu Jewels, Jewels Forum, Aakanksha Rustagi, Prernaa Makhariaa, Aakarshan Jewellery, Monica Kapur and Vipin Rohilla.
Read MoreTitan Company Limited (Tanishq)
Titan Company Limited manufactures and retails jewellery and watches. It also produces perfume for both men and women. The company operates its jewellery division under the key brands such as Tanishq and Carat Lane.
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