exports of gems and jewellery

7/29/2019 Exports of Gems and Jewellery

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Exports of Gems and

Jewellery

SUBMITED BY: SUBMITTED TO:AFRIN KHAN ANIL GORAY

NIHARIKA SAXENA

NISHTHA SONI

YASHA BAKSHI

MBA FT 5YRS. V SEM


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Introduction

Fastest growing sector of India with annual growth rate of

15% p.a approx.

Current market size of the Indian Gems and Jewellery Industry

is 25 billion USD.

Total export of gems and jewellery in April-march, 2010 saw a

growth of 2.36% and 16.27% share in total exports.

G&J Industry consumes 800 tones of world gold that accounts

for 20% of world gold consumption.

It gives employment to nearly 2 million people, out of which 1

million are engaged exclusively in export production


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Major Segment

Gold:

Comprises around 80% of Indian jewellery market.

Very high level of domestic consumption

Varieties include the South jewellery, Maharashtrianjewellery, Bengali art etc.

Diamond:

First country to mine, cut and trade diamonds.

Largest diamond cutting & polishing centre in world, with60% carat share and 82% value share.


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Contd

Nearly 9 out of 10 diamonds sold worldwide are cut

and polished in India.

Exported cut and polished diamonds worth 14.18

billion USD in 2007-08


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Major production centers in India


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Major export destinations


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Major exporters


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G&J Export Promotion Council

Setup in 1966,represents more than 7000 jewellers.

Designers trained to international standards.

To establish a prominent global player in jewellery segment.

Involved in introducing Indian Gems and jewellery products

to international market and promote export .

It provides market information to its members regarding

foreign trade enquiries, trade and tariff regulations, rate ofimport duties and information about exhibitions.


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Role of GJEPC

Trade facilitator

Advisory role

Nodal agency for kimberly process certification scheme.

Training and research

Varied interest


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Core function :

Introduce Indian gems and jewellery products to internationalmarkets and promote their exports.

Other activities :

Compilation and publishing of regular statistics related to exportand import of diamonds in India

Arrangement of participation of its members in foreign market.

Organizing meetings between its members and foreign delegatesvisiting India.

Advertising is leading trade journal abroad to introduce India'sproduct in those markets.


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Export trends

Total export of G&J was 29081.11 million USD.

export posted a modest growth of 1.45% during 2008-09 at USD21.1 billion.

Country exported USD 20.8 billion of gems and Jewellery in 2007-08.

UAE imported gems and jewellery from India in 2008-09 with ashare of 31%.

Sector accounts for 13% of India's total merchandise export.


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Exports data

Items 2007(in cr ) 2008 (in cr) 2009(in cr)

Cut and

polisheddiamonds

57117.17 58649.45 45365.09

Gold jewellery 11637.12 9406.49 5572.37

Coloured

gemstones

1111.05 1197.55 834.80

Rough

diamond

2280.32 3474.93 1992.95


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Major competitors

Gold jewellery

Italy, china, Japan, Thailand, Hong Kong, France, Mexico,

Turkey, Canada, UK, Israel.

Diamond

China, Belgium

Gemstones

Sri lanka , Thailand


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Issue and challenges

Gems and jewellery had sharp decline in October, November,December 2008.

Fresh orders decline by 20% in November and December.

Industry forced to cut production by almost 25% according toGJEPC.

Fall in consumer demand and build up in inventory liquidityproblems.

Closing down of units in Gujarat.


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Government Initiatives

Import duty was lowered on platinum.

Import of 8 & above carat gold allowed under replenishment scheme.

Setting up SEZ ( Special Economic Zone ) and gems and jewelleryparks.

Import duty abolished on polished diamond in may 2007.

Cutting and polishing of gems and jewellery treated asmanufacturing.

Service tax exempted.


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Future scope of gems & jewellery

Global jewellery market estimated to increase in sales of USD

21 billion by 2011 and USD 37 billion by 2015.

Consumption of diamond estimated to jump by 78%.

Branded jewellery expected to grow 40% annually.

Private sector initiatives are projected to derive the sales

around 14%.

Organised gems & jewellery anticipated to grow rapidly nearby

8% of total gems & jewellery.

Factors like cheap labour cost, better design and manufacturing

practices make country attractive destination.


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CONCLUSION

Flexibility in the governmental policies for the Indian

exporters.

Availability of cheap and skilled labour.

USA, EU, Japan and Hong Kong are the leading importers of

major gems and jewellery products from India.\

India is one of the fastest growing jewellery markets in the

world and is the largest consumer of gold in the world


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REFERENCE

www.diamond.com

www.gjepc.org

www.indiamart.com

www.commerce.nic

www.crystalinks.com

www.americapearl.com
http://www.diamond.com/http://www.gjepc.org/http://www.indiamart.com/http://www.commerce.nic/http://www.crystalinks.com/http://www.americapearl.com/http://www.americapearl.com/http://www.crystalinks.com/http://www.commerce.nic/http://www.indiamart.com/http://www.gjepc.org/http://www.diamond.com/


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