GEMS AND JEWELLERY

November 2024
For updated information, please visit www.ibef.org
Table of Contents

Executive Summary 3

Advantage India 4

Market Overview and Trends 6

Strategies Adopted 12

Growth Drivers and Opportunities 16

Key Industry Contacts 23

Appendix 25

2
Executive Summary

1. Contribution to 5. Import trends

GDP and employment • In April-September 2024, India’s gems and
jewellery imports were at US$ 9.92 billion.
• As of March 2024, India’s gold and The total imports of gems and jewellery in
diamond trade contributed ~7% to India’s 5 September 2024 stood at US$ 1.47 billion.
Gross Domestic Product (GDP) and
15.7% to India’s merchandise exports. 1
• The Gems and jewellery sector in India
provides employment to ~5 million
individuals.

4. Robust growth in exports

2. Diamond's processing 2 4 • The Government of India is aiming at US$
and exports 100 billion in jewellery export in the next few
years (until 2027), up from US$ 35 billion in
• In FY24, India’s cut and polished 2020.
diamond exports were at US$ 15.97 • In April-September 2024, India's gems and

•
billion.
The overall gross export of Cut &
3 jewellery exports were at US$ 13.40 billion.
In September 2024, India’s gems and
Polished diamonds stood at US$ jewellery exports were at US$ 2.54 billion.
1.29 billion in September 2024. 3. Market size
• India’s gems and jewellery market size
stood at US$ 78.50 billion in FY21.
• In 2022, India’s gems & jewellery export
sector which is one of the largest in the
world contributed 4.3% to the global
jewellery Export.
• India’s gems & jewellery exports are
expected to reach US$ 100 billion by 2027.
• Market size of the India diamond jewellery
sector is likely to expand to US$ 17 billion
by 2031.
Source: Gems and Jewellery Export Promotion Council (GJPEC), Media sources

3
Advantage India

4
Advantage India
3. POLICY SUPPORT
2. INCREASING INVESTMENT • The Government has permitted 100% FDI under the
automatic route** in this sector.
• Lighthouse, a private equity platform, has made a significant • The sector now has AEO status from the finance ministry,
investment of Rs. 284 crore (US$ 34.2 million) in Kushal's, a easing export-import processes with quicker cargo
brand specializing in fashion and silver jewelry. release, 50% lower bank guarantees.
• In September 2023, Malabar Gold & Diamonds announced to • The Government has reduced custom duty on cut and
invest Rs. 1,000 crore (US$ 120.4 million) by FY25, the polished diamond and coloured gemstones from 7.5% to
company announced generating 4,000 jobs in Maharashtra. 5% and NIL.
• Cumulative FDI inflows in diamond and gold ornaments in • India has 10 special economic zones (SEZ) for gems &
India stood at US$ 1,316.10 million between April 2000-June jewellery. These zones have more than 500 manufacturing
2024, according to the Department for Promotion of Industry units, which contribute 30% to the country’s total exports.
and Internal Trade (DPIIT). The revised SEZ Act is also expected to boost gems and
jewellery exports.
1. GROWING DEMAND • India has signed an FTA with UAE which will further boost
exports and is expected to reach the target of US$ 52
• In October 2020, the first edition of billion.
IIJS Virtual* recorded >10,000 visitors • India has signed Economic Cooperation and Trade
and a business turnover of ~ Rs. Agreement (ECTA) with Australia.
1,000 crore (US$ 137.31 million).
• In 2022, India ranks first among the 4. ATTRACTIVE
top exporters in cut & polished OPPORTUNITIES
diamonds, and second in gold
jewellery, silver jewellery and lab- 2 3 • India’s demand for gold is
grown diamonds. expected to reach 800 -900
tonnes in 2024.
• India’s gold demand witness a
774.1 tonnes in 2023.
• The gems and jewellery sector
1 4 represents 0.19% of the total
equity inflow for FDI from April
2000 to June 2024.

Note: *IIJS Virtual 2.0 has 250 exhibitors and more than 8,000 registered buyers, including foreign buyers from the United States, the United Kingdom, the United Arab Emirates,
Singapore, Bangladesh, Nepal, Hong Kong, Belgium, Sri Lanka, Thailand, among others, with over 15,000 meetings taking place over the five days of the exhibition.
**Under the Automatic Route, the foreign investor or the Indian company does not require any prior approval from the Reserve Bank or Government of India.

5
 Market Overview and Trends

MARKET OVERVIEW

6
Clusters in the Indian gems & jewellery industry

Lakshadweep Coimbatore

7
Net export and import of gems & jewellery

Net export of gems & jewellery (US$ billion) Import of gems & jewellery (US$ billion)

45
35
40

39.14
30

31.52
37.75
35

28.78
35.51

32.71

30
32.63

32.02
25

26.75
30.96

25.90
25.49
29.07

24.41
24.31
25

22.27
25.30
20
20
15

16.49
15

13.4
10 10

9.92
5
5
0
FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY25* 0

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY25*
• In April – September 2024, India's gems and jewellery exports were • In FY24, India’s gems and jewellery imports stood at US$ 22.27
at US$ 13.40 billion, a 12.49% decline compared to the previous billion.
year's period. While the export during September 2024 stood at US$ • In September 2024, India’s gems and jewellery imports were at
2.54 billion. US$ 1.47 billion, a decline of 6.35% growth as compared to
• Gem and Jewellery exports to all top 10 export destinations have September 2023.
recorded a decline except Switzerland during April – December
2023 as compared to April – December 2022.

Source: GJEPC, Media sources *Until September 2024

8
Share of various segments of gems & jewellery in total exports

Share of various segments in total gems & jewellery exports Share of various segments in total gems & jewellery exports in
between April 2024-September 2024 September 2024
4.79%
1.33%
4.66% 2.89%
Cut and Polished
3.36% diamonds
Gold jewellery
Cut and Polished
diamonds
36.32%
Silver jewellery
Gold jewellery
53.47%
32.39% Lab Grown diamonds 60.80% Silver jewellery

Coloured gemstones

Other

▪ Indian exports of gems & jewellery comprises various items such as cut and polished diamonds, silver and gold jewellery, gold medallions and
coins, rough diamonds, coloured gemstones and others.

• In April-September 2024, cut and polished diamonds accounted for the highest share of exports (53.47%), followed by gold jewellery (32.39%) and
lab grown diamonds (4.66%).

• In September 2024, cut and polished diamonds accounted for the highest share of exports (60.80%), followed by gold jewellery (36.32%) and silver
jewellery (2.89%).

Note: Others include Polished Synthetic Stones, Pearls, Platinum Jewellery, Imitation Jewellery, and Gold Medallions & Coins
Source: GJEPC

9
Export and import of top jewellery segments

Export
Visakhapatnam
of cut and polished
port traffic
diamonds
(million(US$
tonnes)
billion) Visakhapatnam
Gold jewellery
portimport
traffic (million
and export
tonnes)
12 14
25
12

24.23
23.82
23.73

10

10.41
12.03
11.90

11.70
22.05
22.78

20

11.14
10
20.67

8
18.66

9.61
9.32
8

8.72
8.56
15

15.97
16.40
6

4.57
6
10 4
4

4.82
2.90

2.90
2.87

2.82
6.90

2.79

0.60
2.73
2

2.62
5 2

2.73
0 0
0
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25*
FY19
FY16

FY17

FY18

FY20

FY21

FY22

FY23

FY24

FY25*
Imports of gold jewellery (US$ billion)
Exports of gold jewellery (US$ billion)

▪ In FY24, exports of cut and polished diamonds stood at US$ 15.97 ▪ In FY24, the exports of gold jewellery stood at US$ 11.14 billion
billion. whereas the imports of gold jewellery stood at US$ 1,041.02
million.
▪ In September 2024, India’s cut and polished diamond gross exports
stood at US$ 1.20 billion. ▪ In September 2024, the total gross exports of gold jewellery stood
at US$ 330.41 million.

Notes: Data of Cut & Pol Diamonds include export of Cut and Polished Diamonds (Bonded Warehouse) , *Until September 2024
Source: GJEPC

10
Key players

Tanishq Logo

11
 Strategies adopted

RECENT TRENDS AND STRATEGIES

12
Strategies adopted… (1/3)

1
Expansion into new jewellery category
▪ Retailers are focusing to expand into new jewellery category to attract urban consumers.
▪ In February 2021, Reliance expanded its e-commerce arm, JioMart, to jewellery with silver coins of 5gm and10 gm, and gold coins of 1gm,
5gm and 10gm.
▪ Reliance's in-house jewellery brand, Reliance Jewels, which has ~143 stand alone showrooms and 212 shop-in-shops in 126 cities in the
country, will fulfil the orders for the new segment.

2
Online selling by gems & jewellery retailers
▪ Jewellery players in India are re-evaluating the brick-and-mortar business model and planning to implement omni-channel approach with
focus on digital strategy to boost sales.

3
Rising micro and small enterprises (MSEs) players
▪ Maximum development was driven by MSEs in gems & jewellery and textiles.

4
Introduction of customised jewellery
▪ Companies have also started selling customised jewellery for customers who prefer to have their jewellery altered as per their own
preference, for example, Malabar Gold.

Source: Company websites, Media sources

13
Strategies adopted… (2/3)

5
Enhanced focus on virtual reality
▪ Companies such as PC Jewellers, PNG Jewellers, and Popley and Sons are planning to introduce a virtual-reality (VR) experience for their
customers. The customer will have to wear a VR headset, through which, they can select any jewellery, see it from different angles and zoom
on it to view intricate designs.

6
New product launches
▪ In June 2021, Tanishq launched antimicrobial jewellery in certain markets as a pilot project. Currently, the range is available in stores across
Chennai and Lucknow, with further launches planned in Kolkata and Hyderabad followed by other key markets. Antimicrobial jewellery is
being offered in categories such as chains and rings, which feature special-coated layers that self-disinfect the surface and impede any
further microbial growth.

7
Expansion
▪ In September 2023, Malabar Gold & Diamonds announced to invest Rs. 1,000 crore (US$ 120.4 million) by FY25, the company announced
generating 4,000 jobs in Maharashtra.
▪ Malabar Gold & Diamonds makes history as the first Indian jewellery brand to set uo shop in Australia.
▪ In the last 10-15 years, the market share of the chain stores has increased by 35% by 2021.

8
Partnerships
▪ In 2022, the demand for gold jewellery grew due to the India-UAE CEPA Agreement.
▪ In October 2021 at the 12th India Global Connect, Thailand and India agreed to work together to revive the bilateral gem & jewellery trade.
▪ In June 2021, the World Gold Council and Gem and Jewellery Export Promotion Council (GJEPC) signed an agreement to promote gold
jewellery in India. Under the agreement terms, both partners will jointly fund a multi-media marketing campaign that would aim to increase
awareness, relevance and adoption of gold jewellery amongst Indian consumers, especially in millennials and Gen Z.

Source: Company websites, Media sources

14
Strategies adopted… (3/3)
9
Trade and award shows by the GJPEC
▪ In October 2023, Record-breaking 500+ International Buyers at 3rd Edition of GJEPC’s International Gem & Jewellery Show in Dubai
▪ In August 2023, Gem & Jewellery industry trade show IIJS Premiere 2023, underway here till August 8, is expected to generate business
worth more than Rs. 60,000 crore (US$ 7.25 billion), the Gem & Jewellery Export Promotion Council (GJEPC).
▪ In February 2022, GJPEC organized a four-day Internal Jewellery Show Signature 2022, where 850 exhibitors had participated and there were
more than 400 international vistors, buyers, and delegations from the US, UAE, Egypt, Nepal, Uzbekistan, and Bangladesh.
▪ In May 2021, GJEPC and Embassy of India, Morocco, co-hosted the ‘India Global Connect’ to better understand the present business climate
in the gems & jewellery sector and seek trade prospects for manufacturers, exporters and importers from both countries.
▪ On July 20, 2021, the GJEPC held the 4th edition of ‘The Artisan Awards,' India's premier jewellery design competition, at the Four Seasons
Hotel in Mumbai. The competition's theme, ‘Reinventing Vintage’, featured three different eras of jewellery from various cultures: Indian
heritage was celebrated through the sub-theme temple jewellery; Japanesque was a nod to Asian inspiration and Victorian was a nod to
colonial history to create timeless yet modern silhouettes. National and international participants from Japan, the US, Taiwan, Russia, Egypt,
Abu Dhabi, and Australia submitted a total of 586 entries.

10
Knowledge webinars benefitting ~6,500 Gem and jewellery industry professionals
▪ Since May 2020, GIA India Laboratory Private Limited (an independent subsidiary of the Gemological Institute of America, Inc., is the world's
foremost authority in gemmology) has hosted >60 knowledge webinars to equip the gem and jewellery trade with the most up-to-date industry
knowledge and advance its consumer protection mission. ~6,500 industry professionals from around the world attended these webinars.
▪ Participants (manufacturers, wholesalers, traders, retailers and professionals) gained important information on gemmology topics such as
‘Navratna’, ‘Introduction to Laboratory-Grown Diamonds’, ‘April Birthstone: Diamond’, ‘September Birthstone: Sapphire’, ‘November
Birthstonnes: Topaz & Citrine’ and ‘The Big 3 – Ruby, Sapphire and Emerald’. These diversified gemmological topics helped attendees gain
valuable information to buy and sell gemstones with confidence.

11
New entrants
▪ Chairman of Aditya Birla Group, Mr.Kumar Mangalam Birla, announced that the company intends to introduce its jewellery business in June
and establish expansive exclusive jewellery retail outlets throughout India showcasing their in-house jewellery brands. The Aditya Birla Group
is set to unveil Novel Jewels in June, with a planned investment of Rs. 5,000 crore (US$ 601.8 million).

Source: Company websites, Media sources

15
 Growth drivers and opportunities

GROWTH DRIVERS

16
Growth drivers of gems & jewellery sector in India

Population demographics Rising gold demand Government initiatives

Growing demand

Gold Monetisation Scheme

India’s middle-class Rapidly increasing middle- to reduce the country’s
population is expected to class population has lead to reliance on gold imports to
increase to 1,250 million in increase in the demand of meet the domestic demand
2048 from 270 million in gold
2018

Proposed jewellery park

India’s demand for gold is allocated: 25 acres land in
India’s rich population is expected to reach 800 -900 Navi Mumbai and 25,000
expected to increase to 310 tonnes in 2024. sq. ft land in West Bengal
million in 2048 from 30
million in 2018

Proposed policy to help

increase the gold supply
from local refineries to 80%
in the next few years from
Source: News Articles, WCG report Gold 2048: The next 30 years for gold current 40%
Note: *Those with income below Rs. 18 lacs per annum (US$ 2000 per month)
*Those with income above Rs. 18 lacs per annum (US$ 2000 per month)

17
High gold demand in India acts as a major driver for growth
and opportunity

▪ According to Gem and Jewellery Export Promotion Council, In FY24, Gold demand in India (tonnes)
imports of gold bars stood at US$ 2,863.88 million and gold jewellery
stood at US$ 1.04 billion.
1,000
▪ In June 2024, import of gold bars reached US$ 160.60 million and
gold jewellery stood at US$ 88.61 million. 900

▪ India’s gold demand stood at 136.60 tonnes in 2024*.

857.24
800

833.45
▪ During the March quarter, the Reserve Bank of India increased its

797.30

774.00
771.22

760.40

747.50
gold reserves by 19 tonnes, surpassing last year's annual net 700

690.40
purchases of 16 tonnes.

666.09
600

500

400

446.40
300

200

136.60
100

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*

Notes: *Until March 2024

Source: World Gold Council, GJEPC

18
Government initiatives and regulatory framework…(1/3)

1
Gems and jewellery industry related to duties and taxes
▪ In the Union Budget 2024, the government proposed reduction in the basic customs duty on gold and silver to 6% and on platinum
to 6.4%.

2
FDI Policy
▪ The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign investor or the Indian
company do not require any prior approval from the Reserve Bank or Government of India.

3
Demonetisation
▪ The demonetisation move is encouraging people to use plastic money and debit/ credit cards for buying jewellery. This is good for
the industry in the long run and will create more transparency.
▪ The Government would notify a new limit for reporting about transactions in gold and other precious metals and stonnes to
authorities to avoid the parking of black money in bullion.

4
Gold spot exchange
▪ The government’s announcement on establishing gold spot exchange could help in India’s participation in determining gold price in
the international market.

Source: Union Budget 2024-25, Media sources

19
Government initiatives and regulatory framework…(2/3)

5
BIS Hallmarking Scheme
▪ 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.
▪ The Government made hallmarking mandatory for Gold Jewellery and Artefacts. A period of one year is provided for
implementation, i.e. until January 2021.

6
Gold Monetisation Scheme
▪ The Gold Monetisation Scheme was launched in November 2015. This scheme enabled individuals, trusts and mutual funds to
deposit gold with banks and earn interest on the same in return.

7
Mandatory hallmarking regime
▪ In December 2020, All India Gem and Jewellery Domestic Council (GJC) welcomed the decision to make hallmarking compulsory
from June 2021 in a phased manner; urged the government to examine the key concerns of the industry for smooth implementation
of the initiative.
▪ Hallmarking of gold jewellery is set to begin from June 15, 2021. In view of the COVID-19 pandemic, the government accepted
request of stakeholders to provide jewellers some more time to prepare for implementation and resolve issues. Earlier, the date of
implementation was June 01, 2021.

Source: Press Information Bureau, World Gold Council, Media sources

20
Government initiatives and regulatory framework…(3/3)
8
Prevention of Money Laundering Act (PMLA)
▪ In December 2020, the Finance Ministry notified that the amendment under Prevention of Money Laundering Act (PMLA), notifying
dealers in precious metals and stonnes, will maintain records of cash transactions worth Rs. 10 lakh (US$ 13.61 thousand) or more
cumulatively with a single customer.

9
Special Group
▪ In August 2020, the government called for constituting a special group, which will include both customs and banking officials, to
resolve issues faced by the gem and jewellery sector.

10
EDI (Electronic Data Interchange) Connectivity of Postal Service with Customs in
e-commerce Policy
▪ In December 2020, the Gem and Jewellery Export Promotion Council (GJEPC) urged the government to include in the
comprehensive e-commerce policy the EDI connection of postal services with customs, to enable banks to automatically close e-
commerce exports against advance credit card payments by foreign purchasers.
▪ The step would drive for progressive reforms to help the industry fulfil its long-term goal of being the epicentre of global gems &
jewellery.

11
Suspension of additional tariff on goods by the US
▪ In June 2021, the US suspended additional tariffs on six countries, including India, that have imposed or are considering
equalisation levy/digital services tax on e-commerce companies for up to six months. This was done to provide additional time to
complete the ongoing multilateral negotiations on international taxation at the Organisation for Economic Co-operation and
Development (OECD) and G20.
▪ The suspension is likely to provide relief to the COVID-hit gems & jewellery sector in India.

Source: Press Information Bureau, World Gold Council, Media sources

21
Increasing FDI inflows into the sector

• The total foreign direct investment (FDI) inflows in the gems and FDI inflow in gems & jewellery sector (US$ billion)
jewelry sector during April 2000-June 2024 stood at US$ 1.31 billion.
▪ The Government of India permitted 100% FDI in the sector through 1.30 0.23 1.28
0.03 0.02
0.01
an automatic route.

▪ Due to the allowance of 100% FDI and improvements in the ease of 1.10 0.12
0.26
business establishment in India, foreign investors in the jewellery
industry will discover favorable conditions to expand their presence 0.90 0.08
within the country. This presents an opportunity for luxury jewellery
brands to establish flagship stores locally. Notably, the renowned US 0.70
luxury jewellery brand Tiffany & Co recently inaugurated its inaugural
store in India. 0.04
0.50 0.05
0.04
0.02
0.30

0.10

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY21

FY22

FY23

FY24
FY01-11

FY20
Source: DPIIT

22
Key Industry Contacts

23
Key Industry Contacts

Agency Contact Information

Office No. AW 1010, Tower A,

G Block, Bharat Diamond Bourse,
Next to ICICI Bank, Bandra-Kurla Complex, Bandra - East
Mumbai - 400 051
Gems and Jewellery Export Promotion Phone: +91 22 26544600
Council of India (GJEPC) Fax : 91 - 22 - 26524764
Email: [email protected]
Website: www.gjepc.org

P & S Corporate House, Plot No. A-56,

Road No. 1, 6th Floor,
Near Tunga International, MIDC, Andheri (East)
All India Gems and Jewellery Trade
Mumbai - 400093
Federation (GJF)
Phone: +91 22 67382727/ 8879001898
E-mail: [email protected]
Website: https://www.gjc.org.in

24
Appendix

25
Glossary

▪ CAGR: Compound Annual Growth Rate

▪ FDI: Foreign Direct Investment

▪ FY: Indian Financial Year (April to March)

▪ GOI: Government of India

▪ Rs.: Indian Rupee

▪ US$: US Dollar

▪ Wherever applicable, numbers have been rounded off to the nearest whole number

26
Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11
2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24
2008 43.42
2008-09 45.91
2009 48.35
2009-10 47.42
2010 45.74
2010-11 45.58
2011 46.67
2011-12 47.95
2012-13 54.45 2012 53.49
2013-14 60.50 2013 58.63
2014-15 61.15 2014 61.03
2015-16 65.46 2015 64.15
2016-17 67.09 2016 67.21
2017-18 64.45
2017 65.12
2018-19 69.89
2018 68.36
2019-20 70.49
2019 69.89
2020-21 73.20
2020 74.18
2021-22 74.42 2021 73.93
2022-23 78.60 2022 79.82
2023-24 82.80 2023 82.61
2024-25** 83.89 2024* 83.70

Note: *- Until October 2024, **- April- October 2024

Source: Foreign Exchange Dealers’ Association of India

27
Disclaimer

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced,
wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or
incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of
IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for
professional advice.

IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume
any liability, damages or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.

IBEF shall not be liable for any special, direct, indirect or consequential damages that may arise due to any act or omission on the part of the user
due to any reliance placed or guidance taken from any portion of this presentation.

28