The Gems and Jewelery Industry in India: An Opportunity

The Gems and Jewelery industry in India has been evolving at the speed of thought as they say. Gems and Jewelery have always been a traditional part of the Indian culture. As times have evolved the consumer's choice for not only Gold but articles such as Platinum, Silver, Diamonds have also increased along with an increased demand for semi-precious articles as well.

Gems and Jewelery Industry: An Overview
The Indian Gems and Jewelery sector is expected to grow at a CAGR of around 13 per cent during 2011 - 2013 on the back of increasing government efforts and incentives coupled with private sector initiatives, according to a report ‘Indian Gems and Jewellery Market Forecast to 2013’, by RNCOS. Source: IBEF

Size:

• Large market size with domestic sale of over $10 billion
• 4 per cent of the global Gems and Jewelery market
• India is the largest consumer of Gold jewelery in the world
• India is the third largest consumer of polished Diamond after USA and Japan

Structure:

The Gems and Jewelery industry in India is highly fragmented, with large number of Public and Private sector players vying the market. Though this industry has been existing for long and much has been achieved and much has evolved over time, but still, a large part of this industry is still un-organized. India has been gaining large prominence globally in terms of the demand for designer jewelery at a lower cost.

The high quality labor available in India at a lower price band makes it a lucrative destination for consumers globally to buy Jewelery here. This has impacted India at the bottom of the pyramid as well. Artisans in Rural India who have the creative ability and the art which has been passed onto them through generations are finding a global consumption base for their products.

Some of the large International retailers like WalMart and JC Penney import exclusive Jewelery items from India.

Government Policy:

The Indian Government has been liberal with the Gems and Jewelery industry with 100 per cent FDI allowed in the same through the automatic route. There have also been SEZs created by the Government to support the growth of the Gems and Jewelery sector.

Future Outlook

The Gem and Jewellery Export Promotion Council (GJEPC) suggests the growth of the Gems and jewellery exports from India by 30-35 per cent in 2010-11, on the back of revival in demand in the international markets.

Source: http://www.culturalindia.net/jewellery/gifs/indian-jewelry.jpg

While the industry is getting organized with structured players like the Gold Souk creating their presence pan India. With multiple brands under one roof, consumers get a wider choice and at regularized pricing. Government supported initiatives such as MMTC have seen immense growth and potential in the domestic consumption.

The Gems and Jewellery Export Promotion Council has initiated IIJS Signature to promote India as the preferred source for jewellery and eventually build brand ‘India'. Signature was conceptualised to showcase India's ability to produce quality jewellery that will match the lifestyle trends world over.

Statistics

Jewelery demand in India grew by 36 per cent to 184.5 tonnes in the third quarter ending September 2010, according to the WGC. The sale of jewellery items stood 135.2 tonnes in the July-September period of 2009. India's jewellery demand reached a remarkable US$ 7.42 billion in the third quarter, 67 per cent higher than the same period of 2009. Source: IBEF

For the SMEs in India, Gems and Jewelery sector is an emerging opportunity to be a part of. As the government is taking steps to regularize the sector, there is a visible opportunity for SMEs to create specialized services such as: jewelery designing, antique art forms etc.Changing lifestyle and urbanization are also fuelling the growth in the gems and jewellery industry, mainly in branded jewellery, which is expected to grow over 40% in the coming years.

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