The Bureau of Indian Standards (BIS) has revised the standard on gold hallmarking in India from January 2018. The gold jewellery hallmark will now carry a BIS mark, purity in carat and fitness as well as the unit’s identification and the jeweller’s identification mark. The move is aimed at ensuring a quality check on gold jewellery.
India is one of the largest exporters of gems and jewellery. The industry contributes a major portion to the total foreign reserves of the country and hence considered to play a vital role in the Indian economy.
The overall net exports of gems and jewellery stood at USD 35.6 bn during FY2016-17 registering a growth of 9.1% over FY 2015-16. Exports of cut and polished diamonds, gold jewellery & silver jewellery registered a growth of 10.2%, 1.9% & 35.9% respectively during FY2016-17. Exports of gold coins & medallions stood at USD 1.9 bn while silver jewellery stood at USD 3.3 bn during April 2017-February 2018.
India is a major importer of gems and jewellery as well. Its imports of gems and jewellery stood at USD 28.3 bn during April 2017-February 2018 which increased at a compound annual growth rate (CAGR) of 7.8% from USD 11.63 bn in FY2004-05 to USD 28.8 bn in FY2016-17.
US, Hong Kong and UAE are the major exporters who accounted for 75% of the total gems and jewellery exports from India during FY 2016-17. While on the other hand UAE, US, Russia, Singapore, Hong Kong, Latin America and China are the biggest importers of Indian jewellery.
The GoI has permitted 100% Foreign Direct Investment (FDI) in the sector under the automatic route. For more details refer FDI Policy
- Largest diamond processing center in the world
- One of the largest exporters of gems & jewellery
- Biggest buyer of gold in the world
Gems & jewellery sector market size is about 7% of the country’s GDP.
Gems and jewellery sector in India contributes about 16% to India’s total merchandise exports and has grown at a CAGR of over 14.8% over the last 50 years. India’s gems and jewellery sector is one of the largest in the world contributing 29% to the global jewellery consumption. Its market size is about USD 60 bn as of 2017 which is expected to reach USD 110 bn by 2022. It currently employs ~4.5 mn people and is expected to provide employment opportunities to more than 8.2 mn people by 2022.
Gems & Jewellery could be divided in the following subsectors:
- Gold, Silver & Platinum Jewellery
India being the largest manufacturer of cut and polished diamonds in the world (almost 12 out of 14 diamonds sold in the world are either polished or cut in India), its global diamond market share is 60% & 90% in value & volume terms respectively.
Gems & Jewellery industry in India is one of the largest in the world contributing 29% to the global jewellery consumption. India being the biggest buyer of gold in the world (FY 16-17), its gold jewellery forms around 80% of the Indian jewellery market.
- Employment generation (skilled & semi-skilled)
- Contribution to country's total commodity exports (FY15)
- Industry CAGR (2014-19)
- Contribution to GDP
The cumulative FDI (USD) in diamond and gold ornaments between April 2000 and December 2017
FDI is permitted under the automatic route in this sector
CAGR for cumulative FDI in diamond and gold ornaments in India FY 2008-17
April 2018 - Russian diamond mining major Alrosa to set up diamond base in India.
January 2018 - De Beers Group invests USD 5 mn in Surat diamond grading unit. The facility, employing about 100 people, has the capacity to process diamonds worth over USD 500 mn every year.
October 2017 - South India-based Kalyan Jewellers has lined up investment of about USD 21.2 mn to expand its footprint in the Uttar Pradesh market.
August 2017 - Jewellery major, Joyalukkas has decided to invest USD 94.4 mn in the current fiscal to expand its retail footprint in India, where it is expecting to increase its turnover by 18.9% in the current financial year to USD 1.3 bn.