Gems and Jewellery

Overview

The global gems and jewellery industry is on way to huge transformation. India has many natural advantages to emerge as Gems & Jewellery hub of the world. India has the largest and the best artisan force for designing and crafting the jewellery in the world. There is considerable scope of value addition in terms of capacity building at the domestic front, quality management and professionalisation.

For the average Indian consumer of gold, diamonds and other gemstones - clichés abound - gold almost always glitters and diamonds are forever. India leads global consumption of gold at an estimated 850 tons annually, and has emerged as the 6th largest consumer of diamonds in the world

India occupies top position in importing, processing and exporting diamonds. With its cut and polished diamonds, colored gemstones, gold jewellery, pearls, non-gold jewellery and fashion jewellery, India holds nearly 50% of the international market. Gems and jewellery sector contributes nearly 18% in India's aggregate exports. It accounts for nearly 55% of the world's net exports of cut and polished diamonds in value terms, 90% in terms of pieces and 80% in terms of carats. India now processes 85% of the world's polished diamonds, far ahead of other competitors. Every 11 of 12 diamonds sold around the globe are processed in India regardless of where these are mined.

India has shifted its trade focus from domestic economy to global markets through liberalized trade policies & lower tariffs. These measures have dramatically improved India's export market over the past 15 years, particularly for diamonds and jewellery.

The following are the issues and areas in which FICCI can play a proactive role to support this Industry and seek the assistance from the concerned ministry

A. Diamond industry:

• At present dollar loans are not available and rupee loans are too expensive. To make matters worse, different banks charge different rates of interest. We should take up this matter with the RBI/finance ministry for regulatory measures.
  
• Evaluating other options for financing to diamontaires.
  
• Value addition: The margins in the diamond industry are very low and the entire emphasis is on large volumes. We need to devise ways and means of taking the industry up on a value chain.
  
• Direct supply of rough from countries such as Angola, Canada and other diamond mining countries.
  
• Measures to improve working conditions in manufacturing set ups.
  
• Move from unorganized to organized set ups.
  

B. Jewellery industry:

• Going up the value chain.
  
• Promoting brand India all over the world.
  
• Promoting Indian retail brands.
  
• Joint retail initiatives and cooperative retail.
  
• BIS/Certification of jewellery to be mandatory in the interest of the consumer.
  
• Set up export targets to 50% yoy and work towards achievement of this target.
  

C. Gold/Bullion:

• Availability of gold loan products to be made available to domestic manufacturers.
  
• All exporters should be allowed to import gold freely.
  
• Easy availability of gold for retailers against stocks.
  
  

Other issues

• Survey of the gold retailing sector with regards to matters such as Gold consumption patterns, trade practices, trade profiles, regional differences.
  
• Issues of Hallmarking, Gold and purity of gold, essaying centers.
  
• Improvement in the ways gold is marketed in India.
  
• Branding and Branded jewellery.
  
• Use of technology in manufacturing and production.
  
• HR practices to transforms traditional management.
  
• Promote jewellery as a category
  
• Enhance image of the industry
  
• Manage a portfolio of markets
  
• Professionalize and transform family owned businesses
  
• Enhance talent supply
  
• Reduce financing cost
  
• Identify new products and consumer segments