Gem And Jewellery Sector In India

India is almost the largest exporter of Gems and Jewellery. This industry has a compelling part in the total foreign exchange of the nation.

The overall net exports of Gems and Jewellery was cataloged at the rate of 9.1% to reach $35.6 bn in 2016-17.During 2016-17, exports of cut and polished diamonds stood at 10.2%, exports of gold jewellery stood at 1.9% and exports of silver jewellery stood at 35.9%. In the period of April 2017 to February 2018, exports of gold coins and medallions were $1.9 bn and exports of silver jewellery was $3.3 bn.

India is also a major importer of Gems and Jewels. The imports of Gems and Jewellery increased at compound annual growth rate (CAGR) OF 7.8% from $11.63 bn to $28.8bn from 2004-05 to 2016-17. Imports were $28.3 bn in period April 2017 - February 2018.

Major importers of Indian Jewellery include US, Hong Kong, UAE, Russia, Singapore, Latin America and China from which US, Hong kong and UAE account for 75% of the total exports from India in 2016-17.

INDUSTRY

Gems and Jewellery export has grown at a CAGR of 14.8 % over 50 years and constitutes for about 16% of total Indian merchandise exports. Gems and jewellery industry of India constitutes for 29% of global consumption. Total market size is expected to grow to $110 bn by 2022 from $60 bn in 2017. The industrsy's employment opportunities are also expected to increase from 4.5 mn people to over 8.2 mn people by 2022.

This industry has the following sub-sectors:

=> Diamonds

=> Pearl

=> Gemstones

=> Silver

=> Platinum Jewellery

HOW IS THIS INDUSTRY SIGNIFICANT TO INDIAN ECONOMY?

Around 6000 years ago, India was the largest manufacturer and exporter of semi precious stones and gold. Also, around 3000 years ago, india was the only supplier of gemstones globally. Merchants from all across the world were attracted to Kashmiri sapphires.

Due to increase in per capita income of the people and strong purchasing power, especially of working women has resulted in a really high demand of gems and jewellery

This Sector is also experiencing new preferences of consumers, They are open to new designs of the jewellery. Online payment is also a new thing rising fast. Also the demand for precious stones for astrological reasons, especially by youth has seen a new spark.