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India has significant reserves of gold, diamond, ruby and other gemstones. Key states withgemstone reserves are Maharashtra, Madhya Pradesh, Orissa, Chattisgarh, Bihar and AndhraPradesh.

Orissa has deposits of ruby and has about 20 varieties of various gemstones such asrhodoline, garnet, aquamarine, etc. Diamonds are mined only at Panna in Madhya Pradesh bythe National Mining Development Corporation.

The country is the largest consumer of gold, accounting for more than 20% of the totalworld gold consumption.

Gold jewellery forms around 80% of the Indian jewellery market, with the balancecomprising fabricated studded jewellery that includes diamond and gemstone studded

jewellery.At present, India exports 95% of the worlds diamonds, according to statistics released by

the Gems and Jewellery Export promotion Council (GJEPC).

The countries where demand is increasing for Indian jewellery includes UAE, US, Russia,Singapore, Hong Kong, Latin America and China.

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One of Indias leading foreign exchange earning sectorsGem & Jewellery sector accounted for 16.67% of Indias total Merchandise

Exports

USAs import of Gem &Jewellery from India increased by 50.5% in 2010 as

compared to 2009

India Gems & Jewellery exports are expected to grow at a whopping 15 %

20% in FY 2011-2012

At present India exports 95% of the worlds diamonds

One of Indias leading foreign exchange earning sectors and one of thefastest growing sectors accounting for 14% of Indias total merchandise

export FY 2011-12.

Export has grown from US$28 million in 1966-67 when the GJEPC was

established to US $ 42.84 in 2011-12.

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Ascertain Indias Leadership Position in the Globalarena.

Establish India as a BRAND to reckon with in

Gem & Jewellery.

Truly make India the Worlds trading hub for the

Gem & Jewellery.

Lead the industry in Driving Gem & Jewellery Sales

worldwide.

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75699162

12112

1565816701 17159

20921

24894

29433

4313942840

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

NET EXPORT FIGURES FOR LAST 10 YEARS

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Diamonds65%

Gold Jewellery30%

Coloured GemStones

1%

Others1%

Rough Diamonds3%

Gem & Jewellery Export Basket 2010-11

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UAE47%

Hong Kong22%

USA11%

Belgium

5%

Israel3%

Singapore1%

Thailand1%

UK1%

Japan1%

Australia1%

Netherlands1%

Switzerland1%

Others5%

Destinationwise Exports2010-11

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Jaipur: Polishing

precious and

semi-precious

gemstones

Surat: Diamondprocessing center

Mumbai:

Machine made

jewellery

Trichur: Gold

jewellery and

diamond cutting

Delhi: Silver

Jewellery and

articles

Kolkatta: Light

weight plain gold

jewellery

Hyderabad:

Precious and

semi-precious

studded jewellery

Nellore: Captive

source for hand

made jewellery

Coimbatore:

Casting jewellery

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G & JIndustry

Sourcing

Processing

Manufacturing

Selling

Products

Gold

Diamond

Platinum

Gemstone

Exports

SEZ (SpecialEconomic Zones)

EPZ (ExportProcessing Zones)

SEEPZ (ElectronicExports Processing

Zone)

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Govt.Support

Govt. Bodies

Govt.Policies

Govt.Initiatives

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Measures pertaining to Custom duty :

Basic custom duty is being increased on Platinum from 2% to 4%.

Customs duty of 2% is being prescribed for cut and polished coloured gemstones.

Introduction of 2% Import duty on Cut and polished Diamonds was introduced

on 16th January 2012. (This has affected the country's diamond trading activities).

Measures pertaining to Central Excise duty :

Full exemption from Excise duty is being provided for gold coins of purity of

99.5% &above. and silver coins of purity 99.9% & above.

Full exemption from Excise duty is being provided for all articles of precious

metals not bearing a brand name.

Exemption of Central Excise duty on Branded Silver Jewellery.

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Recent Notifications of the Govt. of India

Duty free import entitlement of consumables for metals other than Gold,and Platinum shall be 2% of FOB (freight on board) value of exports.

Duty free import entitlement of commercial samples shall be Rs3,00,000/-

Duty free re-import entitlement for rejected jewellery shall be 2% of theFOB value of exports.

Cutting and polishing of gems and jewellery, shall be treated asmanufacturing for the purposes of exemption under Section 10A of theIncome Tax Act.

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Initiatives:

100 percent foreign direct investment (FDI) in gems and jewellerythrough the automatic route is allowed.

The government has lowered import duty on platinum and has exemptedrough colored precious gems stones from customs duty.

Rough, semi-precious stones are also exempted from import duty.

Setting up of SEZs and gems and jewellery parks to promote investmentin the sector.

The government abolished import duty on polished diamonds.

The export of colored gemstones on a consignment basis has beenallowed.

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Govt. Bodies

Gems & Jewellery

Export PromotionCouncil

(GJEPC)

Gem & Jewellery

Trade Council ofIndia

(GJTCI)

The Bureau ofIndian Standards

(BIS)

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THE

INDIAN

GEM & JEWELLERY

INDUSTRY

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GJEPC is all -India apex body for Gem & Jewellery.

It was set up in 1966 and is operated under the supervision of the Ministry of

commerce and Industry, Government of India.

GJEPC has over the years effectively moulded the scattered efforts of individual

exporters to make the gem and jewellery sector a powerful engine driving India's

export-led growth.

GJEPC is continuously working towards creating a pool of artisans and

designers trained to international standards so as to consolidate the Indian

jewellery industry and establish it as a prominent global player in the jewellerysegment.

GJEPC is primarily involved in introducing the Indian gem & jewellery

products to the international market and promote their exports.

Shri. Vipul ShahChairman

Shri. Pankaj Kumar ParekhVice - Chairman

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Strength of 6,500 members' spread all over the country.

Indian jewelry sector under the body of GJEPC is well supported byGovernment policies and the banking sector, with around 50 banks

providing about US$ 3 billion credit to the Indian diamond industry.

The Government has set up an Expert Committee on Gems and Jewellery in2006 to suggest measures for making India a global hub.

To achieve this, the Council provides market information to its membersregarding-

Foreign trade inquiries

Trade and tariff regulations Rates of import duties,

Information about jewellery fairs and exhibitions .

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To make India the preferredsource for quality gems and

jewellery

Vision

To enable every individualassociated with the Indiangems and jewellery industryto achieve their full potential

Mission

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The Councils Primary objective is to promote and thereby enhance exports

of gems and jewellery from India.

To provide Guidance and information to members.

To liaise between the trade and government on issues pertaining to theindustry.

To advise the Indian government on matters pertaining to the industry.

To provide Training and R&D support for the development of the trade.

To facilitate contracts between Indian and foreign businessmen.

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The Council undertakes direct promotional activities such as :-

Organizing joint participation in international jewellery shows

Sending and hosting trade delegations

Sustained image building exercises through advertisements abroad,publications and audio-visuals.

The Council regularly communicates with Indian Embassies, trade bodiesand associations in various countries.

GJEPC organizes seminars, and participates in international exhibitions.

GJEPC invites countries to explore areas of co-operation in supply ofrough diamonds and rough colored stones as well as offers co-operation injewellery manufacturing.

The council is also concentrating on Buyer-Seller Meets.

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A crucial area of activity of the Council has also been aiding betterinteraction and understanding between the trade and the government.

The Council takes up relevant issues with government and agenciesconnected with exports and submit documents for consideration andinclusion in the Exim Policy..

Issues dealt with include direct taxes, duty structure, sales tax, octroi, etc.

The Council also grants membership, registration certificates andperforms other roles as per the Exim Policy.

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The council is committed to provide training and R&D support for thedevelopment of trade and guidance and information to members.

To ensure that Indian industry achieves the highest levels of technicalexcellence, the council runs number of institutions that provide regularand part-time training in all aspects of jewellery manufacture and design.

Gems Testing Laboratory, Jaipur

Jewellery Product Development Centres, in Mumbai, Delhi And Jaipur Indian Gemmological Institute, Delhi Indian Diamond Institute, Surat

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GJEPC works closely with the Government of India and the trade to implementand oversee the Kimberley Process Certification Scheme.

The Council has been appointed as the Nodal Agency in India under theKimberley Process Certification Scheme.

The scheme has been implemented since 1

st

January 2003. It was incorporatedinto the official Exim policy since April 2003.

The Govt. of India has designated GJEPC as the importing and exportingAuthority within the meaning of Section IV (b) of the Kimberly ProcessCertification Scheme.

GJEPC verifies and endorses data mentioned in each KP Certificate on import ofrough diamonds and issue a KP Certificate for each export of rough diamonds.

India is signatory to and active participant in KPCS certification scheme forcurbing entry to conflict diamonds into the mainstream as per InterlakenDeclaration.

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Kimberley Process Certification SchemeThe Kimberley Process came into force when the South African diamond producingnations met at Kimberley in South Africa in May 2000.

The Kimberly Process was set up to discuss ways to stop the trade in conflictdiamonds and to ensure that diamond purchases did not fund violence.

Kimberley Process is a joint Government, international diamond industry and civilsociety initiative to stem the flow of conflict diamonds.

In this process each rough diamond shipment is accompanied by a KimberleyCertificate which states the authenticity of diamond. The importing country will alwayscheck for the Kimberley Certificate of that diamond shipment before releasing it.

The system of verification and issuance of KPC is administered from the Mumbai andSurat offices of GJEPC.

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GJEPC organizes joint participation of member exporters in important internationalexhibitions.

The council brings out publications such as industry brochures, statistical booklets &a trade magazine SOLITARE International.

It has also developed promotional audio-visual film: INDIA YOUR FIRSTCHOICE

Apart from participating in international exhibitions, the council is now concentratingon organizing Buyers-Sellers Meet and Events:

IIJSIndia International Jewellery ShowIIJWIndia International Jewellery Week

IIJS SIGNATURE

TRADE SHOWS

ROAD SHOWS

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GJEPC, in its endevour to promote India as a Innovation & DesignDestination forjewellery, proudly launched Indias own event IndiaInternational Jewellery Week (IIJW).

IIJW is an initiative by GJEPC to showcase India's finest in jewellery, be itdesign, innovation, craftsmanship, technology or quality to the customersaround the globe.

IIJWs 3rd Edition was held from 19th to 23rd August 2012

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The Gem & Jewellery Export Promotion Councilhas announced India International Jewellery Show

(IIJS) 2013. The 30th edition will be held at

Goregaon, Mumbai, from 8th

to 12th

August, 2012.

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Signature IIJS is India's top-of-the-line jewellery show, showcasing the best

jewellery collections by the country's leading manufacturers.

Restricted to about 450 exhibitors, the focus is on product jewellery of the

highest standards of design, craftsmanship and finish.

Visiting Signature IIJS is a profitable step to growing your business.

The show is compact enough to fully explore sourcing opportunities and, with a

large number of new participants, it is the ideal platform to develop additional

contacts.

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GJEPC works towards strengthening and exploring new avenues in bilateral trade andindustry representation, GJEPC has set precedence by taking an initiative to forgefriendship and partnership between various countries.

Recently held JCK Vegas Trade Show Las VegasJune 2012

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GJEPC is conducting several Road Shows to spread awareness about the fantasticopportunities at IIJS. The events also serve to strengthen stronger trade relationshipswith the countries, many of which are emerging as strong jewellery centres. At theseRoad Shows, senior Council office bearers and Indian embassy officials interact withlocal jewellery trade associations and traders/buyers/retailers.

Recently, Road Shows have been held at Jeddah, Riyadh in Saudi Arabia, Singapore,Kuala Lumpur, Malaysia, Korea, and China. Delegations of around 20 top buyers areexpected from each location. Alongside many Road Shows are also being held acrosssmall cities and towns in India.

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Challenges

Fluctuation in Foreign exchange rate

Competition from Unorganised andfragmented players

Rising Gold and Silver prices

Threat from other countries

Dependence on raw material

Drivers

Important savings and investmentvehicle

Growing training institutes

Low cost and abundance of skilledlabourers

Continuous traditional demand

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According to a strategic report commissioned by GJEPC, Indias growing importance in the

global jewellery market is expected to increase in the future with total estimated jewellery salesof US$ 37 billion by the year 2015.

Gems and jewelry contribute the single largest export item, accounting for 16 percent ofIndias GDP.

The long-term outlook for the Indian diamond and jewellery industry continues to be positive.

India's competitive advantage is likely to centre on its skilled labour combined with a readyadoption of leading-edge technology.

Presence of highly skilled, low-cost labor enables India to design and make high volumes of

exquisite jewellery at relatively low costs.

Emergence of branded jewellery is a new trend that is shaping the Indian jewellery market.

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