INVEST INDIA : Opportunities in the World's Largest Democracy

Gems & Jewellery

OVERVIEW

SIZE

Large market for Gems & Jewellery with domestic sales of over US$10 billion
- 4% of the global Gems & Jewellery market
Exports of over US$17 billion in 2006-07; about 14% of India’s exports
India is the largest consumer of gold jewellery in the world
- Accounts for about 20% of world consumption
India is the largest diamond cutting and polishing centre in the world
- 60% value share, 82% by carats and 95% share of the world market by number of pieces
- Third largest consumer of polished diamonds after USA and Japan
The Bharat Diamond Bourse in Mumbai expected to channel 90% of diamond trade activity in the country, when fully operational

STRUCTURE

The Indian Gems & Jewellery industry is highly fragmented with a large number of domestic private sector companies
- A large portion of the market is in the unorganised sector
India is gaining prominence as an international sourcing destination for high quality designer jewellery
- Wal-Mart, JC Penney etc. procure jewellery from India

POLICY

100% FDI is permitted in the Gems & Jewellery sector through the automatic route
SEZs and Gems & Jewellery Parks have been set up to promote investments in the sector
In May 2007, the Government of India abolished import duty on polished diamonds.

OPPORTUNITY


India is one of the largest exporters of gems & jewellery	India is the diamond polishing capital of the world

OUTLOOK

India is the fastest growing jewellery market in the world
- Branded jewellery likely to be the fastest growing segment in domestic sales
  - Expected to grow at 40% p.a. to US$2.2 billion by 2010
- Exports expected to grow from US$17 billion in 2006 to over US$25 billion by 2012

POTENTIAL

India has several well-recognised strengths which have made it a significant force in the global Gems & Jewellery business
- Highly skilled, yet low-cost labour
  - Several design centres and training institutes are being set up
- Established manufacturing excellence in jewellery and diamond polishing
- India is the most technologically advanced diamond cutting centre in the world
Opportunity to address one of the world’s largest and fastest growing Gems & Jewellery markets
Opportunity to leverage India’s strengths to address the global market

For additional information: Gems & Jewellery Export Promotion Council (http://www.gjepc.org/gjepc)