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INTRODUCTIONINTRODUCTION
GEMS AND JEWELLERY SECTORGEMS AND JEWELLERY SECTOR
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CLASSIFICATIONCLASSIFICATION
GEMS ANDJEWELLERY
SECTOR
POLISHEDDIAMONDS
GEMS STONESGOLD AND
JEWELLERYSYNTHETIC
STONES
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Export Opportunities IN INDIAExport Opportunities IN INDIA
India is the fastestIndia is the fastest--growing jewellery market in thegrowing jewellery market in theworld.world.
New markets in Europe and Latin America.New markets in Europe and Latin America.
Growing demand in south Asian and far East countriesGrowing demand in south Asian and far East countries
Exports expected to grow from $15.5 billion in 2005 toExports expected to grow from $15.5 billion in 2005 to
over $25 billion by 2010.over $25 billion by 2010.
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2004-05 2005-06 2006-07 2007-08
Source: www.gjepc.com
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Gems and Jewellery Sector in IndiaGems and Jewellery Sector in India
The domestic market is estimated to be around US$ 16.1The domestic market is estimated to be around US$ 16.1
billion and the All India Gems and Jewellery Tradebillion and the All India Gems and Jewellery Trade
Federation, a nodal agency representing 300,000 jewellersFederation, a nodal agency representing 300,000 jewellers
across the country, expects it to grow to US$ 25.2 billion inacross the country, expects it to grow to US$ 25.2 billion in
two to three years.two to three years. The country is also the largest consumer of gold in theThe country is also the largest consumer of gold in the
world. It consumes nearly 800 tonnes of gold that accountsworld. It consumes nearly 800 tonnes of gold that accounts
for 20 per cent of world gold consumption, of which nearlyfor 20 per cent of world gold consumption, of which nearly
600 tonnes go into making jewellery.600 tonnes go into making jewellery.
India is also emerging as the world's largest trading centreIndia is also emerging as the world's largest trading centre
for gold targeting US$ 16 billion by 2010. The industry hasfor gold targeting US$ 16 billion by 2010. The industry has
the best skilled manpower for designing and producing highthe best skilled manpower for designing and producing high
volumes of exquisite jewellery at low labour costs.volumes of exquisite jewellery at low labour costs.
4% of the global Gems and Jewelery market4% of the global Gems and Jewelery market ..
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COMPETITION AREACOMPETITION AREA
Diamond: China, BelgiumDiamond: China, Belgium
Gemstones: Sri Lanka, ThailandGemstones: Sri Lanka, Thailand
Gold Jewellery: China, Italy, France, Hong Kong,Gold Jewellery: China, Italy, France, Hong Kong,Mexico, Thailand, SwitzerlandMexico, Thailand, Switzerland
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FORECASTFORECAST
INDIA AND CHINA TOGETHER AN EXPORT OF $10 BILLIONINDIA AND CHINA TOGETHER AN EXPORT OF $10 BILLION RETAIL BUSSINESS WOULD EMERGERETAIL BUSSINESS WOULD EMERGE GJEPC PROVIDING A GREAT HELP TO EXPORTER TOGJEPC PROVIDING A GREAT HELP TO EXPORTER TO
INTRODUCE INDIAN GEMS IN INTERNATIONAL MARKETINTRODUCE INDIAN GEMS IN INTERNATIONAL MARKET EXIM POLICY AND SUBMISION OF DOCUMENTS A GREATEXIM POLICY AND SUBMISION OF DOCUMENTS A GREAT
DEAL OF HELP PROVIDEDDEAL OF HELP PROVIDED 4% OF INTERNATIONAL MARKET HERE IN INDIA4% OF INTERNATIONAL MARKET HERE IN INDIA 18% OF INDIAS EXPORT OUT OF $15.5 BILLION18% OF INDIAS EXPORT OUT OF $15.5 BILLION LARGEST CONSUMER OF GOLD JEWELLERY ABOUT 20%LARGEST CONSUMER OF GOLD JEWELLERY ABOUT 20% The sector is expected to grow at 40% p.a. to $2.2 billion by 2010The sector is expected to grow at 40% p.a. to $2.2 billion by 2010 Exports expected to grow from $15.5 billion in 2005 to over $25Exports expected to grow from $15.5 billion in 2005 to over $25
billion by 2010billion by 2010
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POLICIESPOLICIES
1990 GOLD ACT ABOLISHED1990 GOLD ACT ABOLISHED 1993 NRI GRANTED THE RIGHTS FOR BRINGING THE GOLD1993 NRI GRANTED THE RIGHTS FOR BRINGING THE GOLD TRADE POLICY 2004TRADE POLICY 2004--09 ALLOWED IMPORT OF UED09 ALLOWED IMPORT OF UED
JEWELLERY FOR ITS FURTHER USEJEWELLERY FOR ITS FURTHER USE JEWELLERY EXPORTED ON CONSIGNMENT BASISJEWELLERY EXPORTED ON CONSIGNMENT BASIS Cutting and polishing of gems and jewellery treated asCutting and polishing of gems and jewellery treated as
manufacturing for the purposes of exemption under Section 10A ofmanufacturing for the purposes of exemption under Section 10A ofthe Income Tax Actthe Income Tax Act
Levy of two per cent excise duty on premium branded Jewellery.Levy of two per cent excise duty on premium branded Jewellery. 100 per cent Export Oriented Units (EOUs) and units in the Export100 per cent Export Oriented Units (EOUs) and units in the Export
Processing Zones (EPZs)/Special Economic Zones (SEZs), enjoyProcessing Zones (EPZs)/Special Economic Zones (SEZs), enjoya package of incentives and facilities, which include duty freea package of incentives and facilities, which include duty freeimports of all types of capital goods, raw material, andimports of all types of capital goods, raw material, andconsumables in addition to tax holidays against export.consumables in addition to tax holidays against export.
Currently 74% FDI in Mining, 100% proposed.Currently 74% FDI in Mining, 100% proposed.
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GROWTH OF THE SECTORGROWTH OF THE SECTOR
BETWEEN 2003BETWEEN 2003--20072007
FIG IN US$ MILLIONFIG IN US$ MILLION
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ITEMS 2002-03 2003-04 2004-05 2005-06 2006-07
Cut & Polished Diamonds 6187 5972 7111 8627 11182
Coloured Gemstones 203 183 192 178 193
Gold Jewellery 1150 1167 1513 268 3813
Pearls 3 3 4 4 3
Non-Gold Jewellery 56 64 85 99 129
Synthetic Stones 2 2 1 1 1
Costume/Fashion Jewellery 10 10 10 10 -
sales to Foreign Tourist 12 13 13 18 -
TOTAL 7622 7414 8929 11620 15320
Exports to Rough
Diamonds157 142 241 536 358
Net Exports7779 7556 9170 12156 15678
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STRENGTHSTRENGTH
About one million craftsmen are associatedAbout one million craftsmen are associated
with this industry. Their skills can be utilized forwith this industry. Their skills can be utilized fordesigning and making modern Jewellerydesigning and making modern Jewellery
Availability of abundance of cheap and skilledAvailability of abundance of cheap and skilledlabor in India.labor in India.
Presence of excellent marketing networkPresence of excellent marketing networkspread across the world.spread across the world.
Supportive government industrial/ EXIM policySupportive government industrial/ EXIM policy
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WEAKNESSWEAKNESS
Small firms lacking technological/ exportSmall firms lacking technological/ exportinformation expertise.information expertise.
Low productivity compared to labor inLow productivity compared to labor inchina, Thailand and Sri Lanka.china, Thailand and Sri Lanka.
As the major raw material requirementsAs the major raw material requirements
need to be imported, companies normallyneed to be imported, companies normallystock huge quantities of inventorystock huge quantities of inventoryresulting high inventory carrying costsresulting high inventory carrying costs
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OPPORTUNITYOPPORTUNITY
New markets in Europe & Latin AmericaNew markets in Europe & Latin America
Growing demand in South Asian & FarGrowing demand in South Asian & FarEast countries.East countries.
Rupee value depreciating resulting in aRupee value depreciating resulting in awindfall increase in the profitability.windfall increase in the profitability.
Industry moving from a phase ofIndustry moving from a phase ofconsolidationconsolidation
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THREATSTHREATS
China, Sri Lanka and Thailand's entry inChina, Sri Lanka and Thailand's entry insmall diamond segmentsmall diamond segment
Infrastructure bottlenecks, absence ofInfrastructure bottlenecks, absence oflatest technologylatest technology
Unusual increase in the prices of goldUnusual increase in the prices of gold
and rough diamondand rough diamond
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CONCLUSIONCONCLUSION
Based on the findings, the report estimates thatBased on the findings, the report estimates thatworldwide jewelry sales will rise from $146worldwide jewelry sales will rise from $146billion in 2005 to $185 billion in 2010 and $230billion in 2005 to $185 billion in 2010 and $230billion in 2015. However, it stresses that if thebillion in 2015. However, it stresses that if theindustry as a whole focuses on growingindustry as a whole focuses on growingdemand for jewelry as a category anddemand for jewelry as a category andstrengthening industrystrengthening industry--level and enterpriselevel and enterprise--
level capabilities in the next 12level capabilities in the next 12--18 months,18 months,sales could reach $280 billion in 2015,sales could reach $280 billion in 2015,registering a CAGR of 6.7 percent.registering a CAGR of 6.7 percent.
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ReferencesReferences
www.gjepc.orgwww.gjepc.org
www.dgft.delhi.nic.inwww.dgft.delhi.nic.in
www.eximpolicy.comwww.eximpolicy.com
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PRESENTORSPRESENTORS
RIMPY NARULA BMRIMPY NARULA BM--AA--0101
PRATEEK GUPTA BMPRATEEK GUPTA BM--AA--0202
ARCHIT MALHOTRA BM ARCHIT MALHOTRA BM--AA--0303