Analysis Of The Indian Jewellery Industry

Analysis Of The Indian Jewellery Industry Role in Indian Economy The Gems and Jewellery (G it is also the processes 90% of the diamonds by pieces (55 percent by value of the global market) – largest consumer. The Gems and Jewellery Export Promotion Council (GJEPC) is responsible for sustaining the new initiatives in the sector(Public enterprise). The industry holds prominent significance as it is a net exporter and provides employment to 1.3 million people directly and indirectly. India is also emerging as the world’s largest trading centre for gold targeting US$ 16 billion by 2010. GJ market contributes 16 per cent of total exports, making it a significant foreign exchange earner for the country. Growth Potential Jewellery Retail Sourcing from the skill to the ability to innovate and develop. Currently, India’s G&J industry is highly unorganized and fragmented with 96 percent of the total players being family owned businesses. The gold processing industry has around 15,000 players, with only 80 having revenues over USD 5 million. India is also home to around 450,000 goldsmiths, 100,000 gold jewelers along with 6,000 diamond processing players and 8,000 diamond jewelers. Consumers have started shifting towards branded jewelery, which offers higher quality and saves the consumers from unfair trade practices in the industry. The emergence of jewelry retail chains provide customers with convenience and assurance of quality. The organized gems and jewellery sector is expected to progress with a good pace in near future, and should hopefully account for nearly 8% of the total gems and jewellery market by 2009-10. The Branded jewellery segment is also expected to have a high growth rate. The key drivers for the industry growth are raising disposable income, conscious marketing efforts, rising young population with urge to spend and jewellery being increasingly regarded as fashion accessory. The entry of foreign players is also likely to increase competition and provide consumers with g reater choice. As Indian gem and jewelry exports have grown to $17 billion, the industry has witnessed an annual average growth rate of about 15-20 percent. EXPORTS The gems and jewellery industry provides a shining example of achieving international competitiveness. The bulk of the Indian GJ exports comprises import of rough diamonds, their cutting and polishing in India, and re-export. CPDs(Cut-Polished-Diamonds) accounted for 71.1% of India’s GJ exports during FY2006, followed by gold jewellery (23.2%), rough diamonds (3.4%), coloured gemstones (1.4%), and non-gold jewellery (0.9%). Thus, these two items-CPDs and gold jewellery- accountrd for around 96% of India’s GJ exports.