export gems and jewellery

8/9/2019 Export Gems and Jewellery

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INTRODUCTIONINTRODUCTION

GEMS AND JEWELLERY SECTORGEMS AND JEWELLERY SECTOR


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CLASSIFICATIONCLASSIFICATION

GEMS ANDJEWELLERY

SECTOR

POLISHEDDIAMONDS

GEMS STONESGOLD AND

JEWELLERYSYNTHETIC

STONES


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Export Opportunities IN INDIAExport Opportunities IN INDIA

India is the fastestIndia is the fastest--growing jewellery market in thegrowing jewellery market in theworld.world.

New markets in Europe and Latin America.New markets in Europe and Latin America.

Growing demand in south Asian and far East countriesGrowing demand in south Asian and far East countries

Exports expected to grow from $15.5 billion in 2005 toExports expected to grow from $15.5 billion in 2005 to

over $25 billion by 2010.over $25 billion by 2010.


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2004-05 2005-06 2006-07 2007-08

Source: www.gjepc.com


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Gems and Jewellery Sector in IndiaGems and Jewellery Sector in India

The domestic market is estimated to be around US$ 16.1The domestic market is estimated to be around US$ 16.1

billion and the All India Gems and Jewellery Tradebillion and the All India Gems and Jewellery Trade

Federation, a nodal agency representing 300,000 jewellersFederation, a nodal agency representing 300,000 jewellers

across the country, expects it to grow to US$ 25.2 billion inacross the country, expects it to grow to US$ 25.2 billion in

two to three years.two to three years. The country is also the largest consumer of gold in theThe country is also the largest consumer of gold in the

world. It consumes nearly 800 tonnes of gold that accountsworld. It consumes nearly 800 tonnes of gold that accounts

for 20 per cent of world gold consumption, of which nearlyfor 20 per cent of world gold consumption, of which nearly

600 tonnes go into making jewellery.600 tonnes go into making jewellery.

India is also emerging as the world's largest trading centreIndia is also emerging as the world's largest trading centre

for gold targeting US$ 16 billion by 2010. The industry hasfor gold targeting US$ 16 billion by 2010. The industry has

the best skilled manpower for designing and producing highthe best skilled manpower for designing and producing high

volumes of exquisite jewellery at low labour costs.volumes of exquisite jewellery at low labour costs.

4% of the global Gems and Jewelery market4% of the global Gems and Jewelery market ..


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COMPETITION AREACOMPETITION AREA

Diamond: China, BelgiumDiamond: China, Belgium

Gemstones: Sri Lanka, ThailandGemstones: Sri Lanka, Thailand

Gold Jewellery: China, Italy, France, Hong Kong,Gold Jewellery: China, Italy, France, Hong Kong,Mexico, Thailand, SwitzerlandMexico, Thailand, Switzerland


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FORECASTFORECAST

INDIA AND CHINA TOGETHER AN EXPORT OF $10 BILLIONINDIA AND CHINA TOGETHER AN EXPORT OF $10 BILLION RETAIL BUSSINESS WOULD EMERGERETAIL BUSSINESS WOULD EMERGE GJEPC PROVIDING A GREAT HELP TO EXPORTER TOGJEPC PROVIDING A GREAT HELP TO EXPORTER TO

INTRODUCE INDIAN GEMS IN INTERNATIONAL MARKETINTRODUCE INDIAN GEMS IN INTERNATIONAL MARKET EXIM POLICY AND SUBMISION OF DOCUMENTS A GREATEXIM POLICY AND SUBMISION OF DOCUMENTS A GREAT

DEAL OF HELP PROVIDEDDEAL OF HELP PROVIDED 4% OF INTERNATIONAL MARKET HERE IN INDIA4% OF INTERNATIONAL MARKET HERE IN INDIA 18% OF INDIAS EXPORT OUT OF $15.5 BILLION18% OF INDIAS EXPORT OUT OF $15.5 BILLION LARGEST CONSUMER OF GOLD JEWELLERY ABOUT 20%LARGEST CONSUMER OF GOLD JEWELLERY ABOUT 20% The sector is expected to grow at 40% p.a. to $2.2 billion by 2010The sector is expected to grow at 40% p.a. to $2.2 billion by 2010 Exports expected to grow from $15.5 billion in 2005 to over $25Exports expected to grow from $15.5 billion in 2005 to over $25

billion by 2010billion by 2010


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POLICIESPOLICIES

1990 GOLD ACT ABOLISHED1990 GOLD ACT ABOLISHED 1993 NRI GRANTED THE RIGHTS FOR BRINGING THE GOLD1993 NRI GRANTED THE RIGHTS FOR BRINGING THE GOLD TRADE POLICY 2004TRADE POLICY 2004--09 ALLOWED IMPORT OF UED09 ALLOWED IMPORT OF UED

JEWELLERY FOR ITS FURTHER USEJEWELLERY FOR ITS FURTHER USE JEWELLERY EXPORTED ON CONSIGNMENT BASISJEWELLERY EXPORTED ON CONSIGNMENT BASIS Cutting and polishing of gems and jewellery treated asCutting and polishing of gems and jewellery treated as

manufacturing for the purposes of exemption under Section 10A ofmanufacturing for the purposes of exemption under Section 10A ofthe Income Tax Actthe Income Tax Act

Levy of two per cent excise duty on premium branded Jewellery.Levy of two per cent excise duty on premium branded Jewellery. 100 per cent Export Oriented Units (EOUs) and units in the Export100 per cent Export Oriented Units (EOUs) and units in the Export

Processing Zones (EPZs)/Special Economic Zones (SEZs), enjoyProcessing Zones (EPZs)/Special Economic Zones (SEZs), enjoya package of incentives and facilities, which include duty freea package of incentives and facilities, which include duty freeimports of all types of capital goods, raw material, andimports of all types of capital goods, raw material, andconsumables in addition to tax holidays against export.consumables in addition to tax holidays against export.

Currently 74% FDI in Mining, 100% proposed.Currently 74% FDI in Mining, 100% proposed.


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GROWTH OF THE SECTORGROWTH OF THE SECTOR

BETWEEN 2003BETWEEN 2003--20072007

FIG IN US$ MILLIONFIG IN US$ MILLION


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ITEMS 2002-03 2003-04 2004-05 2005-06 2006-07

Cut & Polished Diamonds 6187 5972 7111 8627 11182

Coloured Gemstones 203 183 192 178 193

Gold Jewellery 1150 1167 1513 268 3813

Pearls 3 3 4 4 3

Non-Gold Jewellery 56 64 85 99 129

Synthetic Stones 2 2 1 1 1

Costume/Fashion Jewellery 10 10 10 10 -

sales to Foreign Tourist 12 13 13 18 -

TOTAL 7622 7414 8929 11620 15320

Exports to Rough

Diamonds157 142 241 536 358

Net Exports7779 7556 9170 12156 15678


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STRENGTHSTRENGTH

About one million craftsmen are associatedAbout one million craftsmen are associated

with this industry. Their skills can be utilized forwith this industry. Their skills can be utilized fordesigning and making modern Jewellerydesigning and making modern Jewellery

Availability of abundance of cheap and skilledAvailability of abundance of cheap and skilledlabor in India.labor in India.

Presence of excellent marketing networkPresence of excellent marketing networkspread across the world.spread across the world.

Supportive government industrial/ EXIM policySupportive government industrial/ EXIM policy


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WEAKNESSWEAKNESS

Small firms lacking technological/ exportSmall firms lacking technological/ exportinformation expertise.information expertise.

Low productivity compared to labor inLow productivity compared to labor inchina, Thailand and Sri Lanka.china, Thailand and Sri Lanka.

As the major raw material requirementsAs the major raw material requirements

need to be imported, companies normallyneed to be imported, companies normallystock huge quantities of inventorystock huge quantities of inventoryresulting high inventory carrying costsresulting high inventory carrying costs


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OPPORTUNITYOPPORTUNITY

New markets in Europe & Latin AmericaNew markets in Europe & Latin America

Growing demand in South Asian & FarGrowing demand in South Asian & FarEast countries.East countries.

Rupee value depreciating resulting in aRupee value depreciating resulting in awindfall increase in the profitability.windfall increase in the profitability.

Industry moving from a phase ofIndustry moving from a phase ofconsolidationconsolidation


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THREATSTHREATS

China, Sri Lanka and Thailand's entry inChina, Sri Lanka and Thailand's entry insmall diamond segmentsmall diamond segment

Infrastructure bottlenecks, absence ofInfrastructure bottlenecks, absence oflatest technologylatest technology

Unusual increase in the prices of goldUnusual increase in the prices of gold

and rough diamondand rough diamond


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CONCLUSIONCONCLUSION

Based on the findings, the report estimates thatBased on the findings, the report estimates thatworldwide jewelry sales will rise from $146worldwide jewelry sales will rise from $146billion in 2005 to $185 billion in 2010 and $230billion in 2005 to $185 billion in 2010 and $230billion in 2015. However, it stresses that if thebillion in 2015. However, it stresses that if theindustry as a whole focuses on growingindustry as a whole focuses on growingdemand for jewelry as a category anddemand for jewelry as a category andstrengthening industrystrengthening industry--level and enterpriselevel and enterprise--

level capabilities in the next 12level capabilities in the next 12--18 months,18 months,sales could reach $280 billion in 2015,sales could reach $280 billion in 2015,registering a CAGR of 6.7 percent.registering a CAGR of 6.7 percent.


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ReferencesReferences

www.gjepc.orgwww.gjepc.org

www.dgft.delhi.nic.inwww.dgft.delhi.nic.in

www.eximpolicy.comwww.eximpolicy.com


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PRESENTORSPRESENTORS

RIMPY NARULA BMRIMPY NARULA BM--AA--0101

PRATEEK GUPTA BMPRATEEK GUPTA BM--AA--0202

ARCHIT MALHOTRA BM ARCHIT MALHOTRA BM--AA--0303

export gems and jewellery

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