The Gems and Jewelry sector plays an important role in India’s economy, contributing a growth of around 7 % of the country’s GDP and 15 % to India’s total merchandise exports. It also employs over 4.64 million workers and is expected to employ 8.23 million by the end of 2022.
Based on its possibility for growth and value addition, the Government of India has declared the Gems and Jewelry sector as a focus area for export promotion.
India is considered to be the center of the global jewelry market because of its low costs and availability of high-skilled labour. It is the world’s largest cutting and polishing center for diamonds, with the support of government policies.
Moreover, India exports 75% of the world’s polished diamonds, as per the records from the Gems and Jewelry Export promotion Council (GJEPC). India’s Gems and Jewelry sector has been contributing in a big way towards the country’s foreign exchange earnings (FEEs).
The Gems and Jewelry sector is observing changes in consumer preferences due to adoption of western lifestyle.
The increasing Foreign Direct Investment (FDI) inflows in diamond and gold ornaments in the period April 2000 – December 2018 were US$ 1.15 billion, according to Department for Promotion of Industry and Internal Trade (DPIIT).
Some of the key investments in this industry are listed below.
Deals worth Rs 8,000 crore were made at the Indian International Jewelry Show held in August 2018.
Renowned Companies such as PC Jewelers, PNG Jewelers, Popley and Sons, are planning to introduce a virtual-reality (VR) experience for their customers. The customer will have to wear a VR headset, in which they can select any jewelry, see the jewelry from different angles and zoom on it to view complicated designs.
The Bureau of Indian Standards (BIS) has reviewed the standards on gold hallmarking in India w.e.f January 2018. The gold jewelry hallmark will now carry a BIS mark, purity in carat and fitness as well as the unit’s identification and the jeweler’s identification mark. The move is aimed towards ensuring a quality check on gold jewelry.
Gold Monetization Scheme enables individuals, trusts and mutual funds to deposit gold with banks and earn interest.