PROJECT REPORT

(Submitted for the Degree of B.Com. Honours in Accounting & Finance under the
University of Calcutta)

[ ANALYSIS OF GEM AND JEWELLERY INDUSTRY IN

INDIA]

Submitted by
Name of the Candidate: Nandani Gaddhyan
Registration No: 034-1221-1248-16
Name of the College: Shri Shikshayatan College
College Roll No: 11
University Roll No: 1034-51-0319

Supervised by
Name of the Supervisor: Kavitha Sundararajan
Name of the College: Shri Shikshayatan College

February 2019
 Annexure- IA

Supervisor's Certificate
This is to certify that Ms NANDANI GADDHYAN a student of B.Com. Honours in Accounting
& Finance of SHRI SHIKSHAYATAN COLLEGE under the University of Calcutta has
worked under my supervision and guidance for her Project Work and prepared a Project Report
with the title ANALYSIS OF GEM AND JEWELLERY INDUSTRY IN INDIA. which she is
submitting, is her genuine and original work to the best of my knowledge.

Signature:

Name: KAVITHA SUNDARARAJAN

Designation: Lecturer
Department of Commerce (Evening)
SHRI SHIKSHAYATAN COLLEGE

Place: Kolkata

Date: 20th February 2019

 Annexure- IB

Student's Declaration

I hereby declare that the Project Work with the title ANALYSIS OF GEM AND JEWELLERY
INDUSTRY IN INDIA submitted by me for the partial fulfilment of the degree of B.Com. Honours
in Accounting & Finance under the University of Calcutta is my original work and has not been
submitted earlier to any other University /Institution for the fulfilment of the requirement for any
course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated in this
report from any earlier work done by others or by me. However, extracts of any literature which
has been used for this report has been duly acknowledged providing details of such literature in
the references.

Signature

Name: Nandani Gaddhyan

Address: 11/1 Abhishek building ,
flat no 12, Bangur avenue, block C ,
kol-55
Registration No :- 034-1221-1248-16

Place: Kolkata
Date: 20th February 2019

s
 Acknowledgement
This project would remain incomplete if I do not thank the people who have helped me to
successfully complete it. My sincere thanks to Dr. Indrani Saha, respected In-Charge of the
Department of Commerce (Evening Section), Shri Shikshayatan College and Smt. Tanusree Das,
Head of Department, Department of Commerce (Evening Section), Shri Shikshayatan College, for
their constant encouragement. I would like to thank my project supervisor Ms. Kavitha
Sundararajan, Faculty, Department of Commerce (Evening Section) for her advice. I am really
grateful to my seniors for their suggestions and counsel. I am thankful to my family members,
specifically my parents who have encouraged me throughout and have given me support when I
needed it the most. Furthermore I would also like to acknowledge with much appreciation my
classmates, friends and acquaintances that have helped me complete my project. The successful
completion of this project has been possible because of these people who have been of great help.
 Contents

Serial number Topics Page number(s)

1 Introduction 5
1.1 Background of the study 6-8
1.2 Review of Select Literature 9
1.3 Objective 10
1.4 Research Methodology 10
1.5 Limitations 11
1.6 Chapter Planning 11

2 Conceptual Framework 12-16

2.1 National Scenario 17
2.2 International Scenario 17
2.3 Company Profile 18-19

Presentation of Data, Analysis and

3 Findings 20-24
3.1 Presentation of Data 20-23
3.2 Data analysis 20-23

4 Conclusion and Recommendations 24-25

4.1 Conclusion 24
4.2 Recommendation 25

5 Bibliography/ Reference 26
 Chapter I
1.INTRODUCTION :-

1.1 Background Of The Study :-

The Gems and Jewellery sector plays a significant role in the Indian economy, contributing
around 7 per cent of the country`s GDP and 15 per cent to India`s total merchandise exports.
It also employs over 4.64 million workers and is expected to employ 8.23 million by 2022.
One of the fastest growing sector , it is extremely export oriented and labour intensive.
Based on its potential growth and value addition, the government of India has declared the
Gem and Jewellery sector as a focus area for export promotion. The Government has recently
undertaken various measures to promote investments and to upgrade technology and skills to
promote ‘Brand India’ in the international market.

India is deemed to be the hub of the global jewellery market because of its low costs and
availability of high-skilled labour. India is the world`s largest cutting and polishing centre for
diamonds, with the cutting and polishing industry being well supported by government
policies.Morover, India exports 75 per cent of the world`s polished diamonds, as per statistics
from the Gems and Jewellery Export Promotion Council (GJEPC) . India`s Gems and
Jewellery sector has been contributing in a big way to the country`s foreign exchange
earnings (FEEs).The Government of India has viewed this sector as a thrust area for export
promotion.
The Indian government presently allows 100 percent Foreign Direct Investment (FDI) in the
sector through the automatic route.
The project deals with the gem and jewellery sector of the Indian economy and its
contribution to the economy as a whole by analyzing various figures such as its CAGR, GDP
etc. The Indian gems and jewellery industry is one the largest in the world with a share of
29% in global jewellery consumption. India is the largest diamond processing centre in the
world and has the biggest consumer pool of gold. This industry plays a significant role in
maintaining the current account deficit and export-led growth of the economy. It is the
second highest contributor to the country’s commodity exports with a share of 23%, after
petroleum products (30%) in 2017- 18. Indian gems and jewellery is largely export oriented
holding 46% share of the market size, the balance being 54% being domestic demand. After
the global economic slow-down though, its share in total exports has seen a declining trend.
However, recently published data by the Ministry of Commerce shows that exports of
jewellery of gold and other precious metal have increased by 40.7% in 2017-2018.

The gem and jewellery sector has been chosen here because it is one of the fastest growing
sectors in India and accounts for around 7% of the country`s GDP and 15.7% of its total
merchandise exports. It is the field of personal interest.
1.1 Background of the study
 India Gems & Jewellery Industry – Highlights

JEWELLERY MARKET SIZE US$ 13 BILLION

GOLD JEWELLERY MARKET US $1.1 BILLION

DIAMOND JEWELLERY MARKET US $1.3 BILLION

DIAMOND JEWELLERY MARKET GROWTH 27%

The Indian diamond industry has acquired leadership position in cutting and polishing of rough diamonds.
India has the world’s largest cutting and polishing industry, employing around 800,000 people
(constituting 94 per cent of global workers) with more than 500 hi-tech laser machines. The industry is
well supported by government policies and the banking sector - around 50 banks provide nearly US$ 3
billion credit to Indian diamond industry. India is expected to have its diamond bourse functioning at
Mumbai in 2006. India is therefore a significant player in the world gems and jewellery market both as a
source of processed diamonds as well as a large consuming market.
1.2 Review of Select Literature :-

Review of literature is the most simple and fruitful basis of formulating the research problems precisely.
For this purpose the research has to review the works already done by the others. Relevant
bibliographical reviews of studies are most useful to the researcher for formulating the problems
precisely. Knowledge can also be acquired through studying some standard books, magazines and
journals on the subject. It helps in understanding the problem well and creates awareness of technical
terminology to be used in the study. Keeping in view the objective of study, the following literatures
have been reviewed for its consideration.

Literature related with the gems and jewellery industry can be broadly grouped in the following manner:
(i) Literature relevant with the marketing aspects of gems and jewellery products.

. (ii) Attempts related with the role of gems and jewellery industry in the country’s economy.

(iii) Literature related with the problems and prospects of the gems and jewellery sector.

Simoni, Christian and Samuel Rabino25 (2010) examined current patterns of international marketing
activities of Italian gold firms with a special emphasis on the USA market and juxtaposed them with
those adopted 34 by Indian gold firms. They evaluated small companies based in two regions (Arezzo
and Hyderabad, India). They told that competitive behaviour of Italian Small and Medium Enterprises
(SMEs) is primarily reactive, whereas Indian companies strategically focus on the expending Indian
immigrant community.

Kuriyan, Vinod26 (2010) reported that the Indian diamond industry stands clearly above most of the
competition. He told that the single easiest way to check on how the Indian diamond industry is doing
today is to look at all the online diamond trading systems such as index online, etc. He also reported that
the industry should push harder to ensure that its products get to more markets around the world if it
wants to sustain value growth.
 1.3 Objectives:- The main objectives are :-
 This project seeks to understand the contribution of gem and jewellery sector to the GDI,
GNP, FDI and analyse the trends in the last 4 years .
 The project also analyses the contribution of the gem and jewellery sector to exports of the
country by analyzing the trends in the last 4 years.
 Finally the project seeks to determine the position and the significance of India within the
global gems and jewellery industry, by studying the structure of the sector in India and exploring
the future outlook of this sector.

1.4 Research Methodology

Area of study

This study intends to analyse the gem and jewellery industry overall by analyzing their contribution to
GDI, GNI, FDI. This project also tends to find out the contribution of this sector to exports as well as
imports.

Sample

Data used in this project relates to 2016-2018.

Type of study

This study is an exploratory study. An exploratory approach is conducted to gain insights

and become familiar about a topic.

This study does the same by studying the trends in the export , GDI , FDI figures of this sector.

Tools of data collection

This study is completely based on Secondary Data. Secondary data refers to existing and published
data and include censuses, information collected by government departments, organisational
records and data that was originally collected for other purposes.

Data has been obtained from the following websites

[www.ibef.org, www.gjef.in, www. gjf.in ,Ministry of Commerce.]
.

Method of analysis
A basic tool of quantitative data analysis is the analysis using charts and graphs. This study too
uses various types of charts like bar, line, time-series, pie, etc. to achieve its objectives
1.5 Limitations

 Data used in this project is secondary.

 Report is built within a time constraint so it is less exhaustive.

1.6 Chapter Planning

Chapter I- Introduction

Chapter II- Conceptual Framework

Chapter III- Presentation of Data, Analysis and Findings

Chapter IV- Conclusion and Recommendations

Chapter II

2 Conceptual Framework:-
 The gems and jewellery industry occupies an important position in the Indian economy. It is a leading
foreign exchange earner and also one of the fastest growing industries in the country. The two major
segments of the sector in India are gold jewellery and diamonds. Gold jewellery forms around 80 per cent
of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes
diamond studded as well as gemstone studded jewellery. A predominant portion of gold jewellery
manufactured in India is consumed in the domestic market. In diamonds, however, a major portion of
rough, uncut diamonds processed in India is exported, either in the form of polished diamonds or finished
diamond jewellery. Besides being the largest consumer of gold, India is also the leading diamond cutting
nation in the world.
 India Gems & Jewellery Industry – Highlights

JEWELLERY MARKET SIZE US$ 13 BILLION

GOLD JEWELLERY MARKET US $1.1 BILLION

DIAMOND JEWELLERY MARKET US $1.3 BILLION

DIAMOND JEWELLERY MARKET GROWTH 27%

The Indian diamond industry has acquired leadership position in cutting and polishing of rough diamonds.
India has the world’s largest cutting and polishing industry, employing around 800,000 people
(constituting 94 per cent of global workers) with more than 500 hi-tech laser machines. The industry is
well supported by government policies and the banking sector - around 50 banks provide nearly US$ 3
billion credit to Indian diamond industry. India is expected to have its diamond bourse functioning at
Mumbai in 2006. India is therefore a significant player in the world gems and jewellery market both as a
source of processed diamonds as well as a large consuming market.

India`s fascination with jewellery dates back to 5000 years ago in Indus Valley. At that time, the country
was the largest manufacture and exporter of beads in the world. It was home to diamonds, semi-precious
stones and gold. In fact, for more than 2000 years, India was the sole supplier of gemstones to the world.The
Gems and Jewellery industry is an important sector with a high contribution to India’s merchandise
exports and employment generation. It has however been impacted by a tough business environment and
tepid domestic demand during the first quarter of FY19. In FY18, Indian gold demand met primarily
through imports increased due to jewellers’ restocking inventory and enhanced retail interest. However,
for the first four months of FY19 a lower than anticipated demand and a depreciating rupee have hindered
imports. Gold prices were volatile in FY18 and have been on a general downward trend and are anticipated
to remain weak due to factors such as trade disputes, strong US dollar and a hike in the interest rates by
the US Federal Reserve. In CY17, global diamond jewellery consumer demand reached $83bn from $62
bn in CY10, growing at a CAGR of 4% driven by sustained growth in the US and increased demand in China
For the first four months of FY19, overall exports stood at $10.6 bn, a decline of 4% compared with $11.1
bn during the same period last year. The growth in cut and polished diamonds, and gold jewellery was
suppressed by the drop in silver jewellery and gold medallions exports which negatively affected overall
growth. For the Apr –Jul FY19 period, overall imports witnessed a decline of 4% to $10.3bn. UAE, US, and
Hong Kong continue to be the biggest trading partners of the Indian gems and jewellery sector. As a part
of measures to control the current account deficit, the government increased the basic customs duty of
certain items such as cut & polished diamonds and synthetic diamonds, but has not imposed any
additional duty on gold. Credit exposure to the sector is depressed especially to the diamond segment.
However, according to market participants; credit availability has eased for only the higher rated jewellery
players.
2.1 JEWELLERY MANUFACTURING PROCESS

Jewellery manufacturing process includes most advance technologies and dedicated research.
Jewellery making is a very composite process undergoing a long and slow procedure making it
tough from the initial point to the finishing point. Each product undergoes a series of procedures
before we get the finished product as a beautiful Jewellery product.
The natural components of Jewellery (stones, metals, and accessories) passes through multiple
processes. These jewellery is unique and involve a lot of time and skill. Except for personalized
Jewellery which is handcrafted, most of the jewellery is executed by casting machines.

Jewellery manufacturing process may be exhibited with the help the following chart:

CHART SHOWING THE JEWELLERY

MANUFACTURING PROCESS

 DESIGN MAKING

 MOLDING

 CASTING

 POLISHING

Following is a brief description of all the processes involve in

the manufacturing chain.:-

A. DESIGN MAKING

In order to produce a unique piece, the very initial step is to create a design. This is the point
from where the magic begins. An idea of the end product is communicated to a very talented
designer who then makes a sketch of the design. This process of Blueprint Designing is carried
out by proficient craftsmen using techniques and methods handed down over decades.
Each piece of Jewellery starts off with a concept. A concept is basically a rough design in the
mind of the designer. The final design is the result of close cooperation between designer and
client.
B. MOLDING

Once the master piece of Jewellery is complete, it is used tomake a high technology mold, which
in turn is used to make wax reproductions of the Jewellery. After the sketch is complete with all
the fine details, it is passed on to the molding section. In the molding department the very
experienced professional molders then turn the sketch into a master mold which sets the base for
the total process there from. The master mold is a very complex level of crafting as the final
outcome rests on the master mold.

C. CASTING

Casting again is a very complex process and requires utmost skilled and experienced casters for
the desired final product. The wax replicas are placed in steel containers which are then occupied
with a chemical powder and the containers are heated in a chamber to 550°c which solidifies the
powder and melts the wax leaving behind a perfect effect. Liquefied metal is then poured into the
flasks, allowed to cool, then demolished to reveal the Jewellery in casting form.

D. POLISHING

Every part must be polished while the mount is being made. The entire mount is carefully made
clean and polished to the highest degree of smoothness so that each and every part is attractively
polished. After stage setting, the polish man is credit worthy for giving the Jewellery a
concluding polish. All tinctures of the polishing compounds and 'rouge' must be meticulously got
rid of either by careful washing by hand or by use of supersonic cleaning baths.

EMBELLISHMENTS/ DECORATIVE PROCESSES

After the product has passed from the polishing and finishing departments, it has to undergo for
embellishment process. When the products gets cased and foiled, the required decorative stones
of the correct sizes and weight are cut and made with extreme preciseness and assorted for the
final setting which is done once the products leave the foiling and finishing department.
It requires immense patience and skill to make the master model and to produce an exquisitely
casting free from defects and which needs the minimum of chasing to make it perfect.

CHART SHOWING THE EMBELLISHMENTS /

DECORASTIVE PROCESS

 FINISHING
 PLATING
 QUALITY CHECKING
 PACKAGING AND TRANSPORTING
The process of embellishments/decorative can be explained as
below:

i. FINISHING

Once the casting process is over and the caster delivered the products to the following
department, these are then foiled extreme attention for a smooth and soft finish. These castings
are then hand finished in order to meet high standards - adding adjustments and settings before
being delivered to all corners across the world.

ii. PLATING

Considerable technical improvements have been made in plating, especially as used in the
Jewellery trade. Most plating is done by electro-deposition, rhodium, copper, chromium or other
metals being practiced by passing an electric current through a solution and then channelizing the
plating metal from the piece of pure metal to the object set aside in the solution. Sincere attention
must be paid to fabricating and polishing procedures because it is vitally significant.

iii. QUALITY CHECKING

After the plating process is over, the product is brought to the checking department where each
and every piece is checked with excessive attention and thoroughly checked for any defects. This
process of quality checking is done by very experienced workers and all the defected pieces send
back to the respective departments.

D.PACKAGING AND TRANSPORTING

Last but not the least, once all the products pass through all the inspections and checking, it is
then forwarded for final packaging and labeling. Each product is extensively packed into
respective boxes in order to avoid any sort of damages. Thus, each piece of Jewellery, regardless
of its size and weight, passes through a long and complex manufacturing process forming each
piece as valuable, precious and unique.
2.2 NATIONAL SCENARIO

GROWING DEMAND:-

India is the second highest consumer of gold in the world as of 2017, supported by increasing disposable
income of the middle class.

Gold demand in India rose 11 per cent year-on-year to 737.5 tonnes in 2017.

India imported gems and jewellery worth US$ 31.52 billion during FY 2017-18. Imports of gems and
jewellery reached US$ 17.71 billion in April-November 2018 .
INCREASING INVESTMENT:-

The cumulative Foreign Direct Investment (FDI) in diamond and gold ornaments between April 2000 and
June 2018 stood at US$ 1.15 billion.

Domestic companies are also increasingly investing in India by expanding their business

ATTRACTIVE OPPURTUNITIES:-

The Indian middle class is expected to rise to 547 million by 2025 and this rise of young Indian middle
class worker is expected to lead to an increase in demand for gold.

India’s cut and polished diamonds exports are increasing at a fast pace reaching US$ 23.73 billion in
FY18, accounting for the highest share in gems and jewellery exports.


POLICY SUPPORT:-

The Government of India has permitted 100 per cent FDI under the automatic route in this sector.

Gold Monetisation Scheme enables individuals, trusts and mutual funds to deposit gold with banks and
earn interest on the same in return.

2.3 INTERNATIONAL SCENARIO:-

NET EXPORTS OF GEMS AND JEWELLERY

Gems and jewellery industry plays a vital role as it is one of the largest exporters and contributes a major
chunk to the total foreign reserves of the country. The net exports rose from US$ 15.66 billion in FY2004-
05 to US$ 32.71 billion in FY 2017-18, at a CAGR of 5.83 per cent over FY05-18.

In FY18, Hong Kong, UAE and US accounted for 33 per cent, 25 per cent and 23 per cent respectively,
accounted as major export destinations of gems and jewellery.

The net exports of gems and jewellery stood at US$ 20.73 billion between Apr-Nov 2018*. It is
forecasted to grow at 5 per cent in FY19.

Exports of gold coins and medallions stood at US$ 258.35 million and silver jewellery exports stood at
US$ 503.17 million between Apr-Nov 2018*.

Deals worth Rs 8,000 crore (US$ 1.19 billion) were made at the Indian International Jewellery Show
held in August 2018.
EXPORTS OF CUT AND POLISHED DIAMONDS

India is the world’s largest centre for cut and polished diamonds in the world and exports 75 per cent of
the world’s polished diamonds.

In FY18, India exported US$ 23.73 billion worth of cut and polished diamonds, at a CAGR of 5.97 per
cent.

India exported US$ 16.55 billion worth of cut and polished diamonds in Apr-Nov 2018*. It contributed
79.84 per cent of the total gems and jewellery exports.

IMPORTS OF GEMS AND JEWELLERY

India is a major importer of gems and jewellery as well.

India’s total gems and jewellery imports rose from US$ 11.63 billion in FY05 to US$ 31.52 billion in
FY18, thereby registering a compound annual growth rate (CAGR) of 7.97 per cent.

India’s imports of gems and jewellery stood at US$ 17.71 billion in Apr-Nov 2018*.

SHARE OF VARIOUS SEGMENTS OF GEMS AND JEWELLERY IN TOTAL

EXPORTS:-

India exports of gems and jewellery are composed of a variety of items like cut and polished diamonds,
gold and silver jewellery, gold medallions and coins, coloured gemstones, pearls and synthetic stones,
rough diamonds etc.

Cut and polished diamonds account for the highest share of 72.55 per cent in total gems and jewellery
exports as India exports 75 per cent of the world’s polished diamonds.

Gold jewellery accounts for the second highest share of 29.57 per cent followed by others with a share
of 24.86 per cent and silver jewellery with a share of 10.35 per cent.

Rough diamonds account for 4.36 per cent of the total gems and jewellery export

2.4 KEY PLAYERS (COMPANIES PROFILE)

 TANISHQ
 MALABAR GOLD AND DIAMONDS
 PC JEWELLER
 KALYAN JEWELLER

Tanshiq, Malabar gold and diamonds, PC jeweller, Kalyan jewellers are some of the key players
in the gem and jewellery market because they hold more than 50% of the industry`s total supply.
TANSHIQ:- Tanishq (India) Ltd. manufactures and retails jewelry. It offers diamond jewelry; and gold
jewelry, ranging from traditional harams, mangalsutras and thalis to earrings, chains, bracelets, and rings.
The company also offers gold coins, bricks, and biscuits or bars; ‘Shine’, a white gold collection; and
Anuttara, a program that gives reward points on every purchase at a Tanishq store and provides care for
old Tanishq jewelry. It offers its products through its stores, as well as online. The company was founded
in 1994 and is based in Bengaluru, India. Tanishq (India), Ltd. operates as a subsidiary of Titan Industries
Ltd.

MALABAR GOLD AND DIAMONDS :- Malabar Gold Pvt Ltd manufactures, retails, and
wholesales jewelry through a chain of jewelry stores and online. It offers solitaires, gold, diamond,
platinum, and silver jewelry products. The company’s products include rings, earrings, pendants, nose
pins, tanmaniya, necklaces, bangles, bracelets, pendant sets, mangalsutra, chains, maang tikkas, and
anklets, as well as gold coins for men, women, and kids. It also provides watches, gift cards, and gifts.
The company serves customers in India, Bahrain, Kuwait, Malaysia, Oman, Qatar, Saudi Arabia,
Singapore, and the United Arab Emirates. Malabar Gold Pvt Ltd was founded in 1993 and is based in
Calicut, India with additional offices in Dubai.

PC JEWELLERS:- PC Jeweller Limited manufactures, retails, and trades in gold jewelry, diamond
studded jewelry, and silver items in India. The company sells its jewelry through its showrooms and
Website, wearyourshine.com. As of March 31, 2018, it had 92 showrooms, including 82 company owned
showrooms and 10 franchisee showrooms. The company also exports its products. PC Jeweller Limited
was founded in 2005 and is based in Delhi, India.
 Chapter III

3.1 PRESENTATION OF DATA :-

NET EXPORTS OF GEM & JEWELLERY EXPORTS (US BILLION) :-

DESCRIPTION :- Y-axis represents net exports of gem & jewellery in US $ billion and
X-axis reprensts the years.

INTERPRETATION :-
 Net exports of gems and jewellery from India rose at a compound annual growth rate
(CAGR) of 7.01 per cent between FY15 and FY17.
 The overall net exports stood at US$ 35.59 billion during FY2016-17 registering a growth
of 9.07 per cent over FY2015-16.
 The exports stood at US$ 11.12 billion between April-July 2017.
 US, Hong Kong and UAE accounted for 75 per cent of the total gems and jewellery
exports from India during FY 2016-17.

NET EXPORTS OF GEM & JEWELLERY

40.00

35.00

30.00

25.00

20.00
Column3
15.00

10.00

5.00

0.00
FY-15 FY-16 FY-17 FY-18

Graphical representation of net exports of gem and jewellery over the years.
EXPORT OF CUT AND POLISHED DIAMONS (US BILLION) :-

DESCRIPTION :- Y – axis intercept represents export of cut and polished diamonds (US billion)
and X –axis intercept represents the years.

INTERPRETATION:-

 India’s exports 93 per cent of its cut and polished diamonds produced.
 India’s exports of cut and polished diamonds rose from US$ 11.16 billion in FY2004-05 to US$
22.78 billion in FY 2016-17, thereby registering a compound annual growth rate (CAGR) of 6.13
per cent.
 India exported US$ 7.42 billion worth of cut and polished diamonds between April-July 2017.

25

20

15

Column1
10

0
FY-15 FY-16 FY-17 FY-18

Graphical representation of exports of cut and polished diamonds.

IMPORT OF GEM & JEWELLERY :-

DESCRIPTION:- Y- axis represents quantities of import of gem and jewellery in (US billion)
and X –axis represents over the years.

INTERPRETATION :-

 India’s total gems and jewellery imports in rose 5 to US$ 28.78 billion in FY 2016-17, thereby
registering a compound annual growth rate (CAGR) of 7.84 per cent.
 India’s imports of gems and jewellery stood at US$ 10.68 billion between April-July 2017.

IMPORT OF GEM & JEWELLERY

35

30

25

20

Column1
15

10

0
FY-15 FY-16 FY-17 FY-18

Graphical representation of imports of gem and jewellery.

INCREASING OF FDI FLOWS INTO THE SECTOR :-

DESCRIPTION :- Y - axis represents cumulative FDI inflow in US billion and X-axis

represents the years.

INTERPRETATION :-

 Cumulative FDI in the sector rose to 961.62 million as of June 2017.

 The Government of India has permitted 100 per cent FDI in the sector through the automatic
route.
 The International Institute of Diamond Grading and Research (IIDGR) has invested US$ 5 million
for expanding its synthetic diamond testing facility in Surat.

INCREASING FDI FLOW IN THIS SECTOR

1200

1000

800

600
Series 1

400

200

0
FY-15 FY-16 FY-17 FY-18

Graphical representation of foreign direct investment flows into this sector.

3.2 Findings: -

 The net exports of gem and jewellery has increased at at a rate of 7% from 2015 to 2018.
 The net exports of cutted and polished diamonds have increased at an average rate of
6.13% from the year 2015 to 2017 and in the year 2018 the rate has decreased.
 The imports of the gem and jewellery have increased from 2015 to 2017 and then
decreased in the year 2018 .
 The Foreign Direct Investment in this industry has been increased from 2015 to 2018.
 Chapter IV.

4. CONCLUSION AND RECOMMENDATIONS:-

4.1 CONCLUSION :- Now as it is the last part of the project almost so it will lead into
familiarizing with the reasons which lead to the successful meet up with the basic objective of
the project. There are certain factors which have led to the growth of the GDI, FDI, Exports and
Imports which have in turn led to the overall growth of this sector.

Population demographics Rising gold demand Government initiatives

ddddddddddddemographics

India`s middle class population
is supposed to increase to 1.25
million in 2048 from 270 million
in 2018.
Rapidly increasing middle
class population has lead
to increase in the
demand of gold.
Gold Monetisation Scheme
(It is a scheme to convert
cash savings into gold
savings by providing
attractive returns) to reduce
country`s reliance on gold
imports to meet the
domestic demand.

Thus it can be said that the Indian gem and jewellery export industry had its modern beginning in
the 1960s and after that the sector never looked back. Gems and Jewellery exports accounted for
16.44 per cent of India`s total exports in 2009-2010. The industry provide employment to
around 3.4 million people directly. The sector CAGR of 16.59% of India`s exports in 2010-
2018. However, this sector is facing various problems such as dependence on imports , changing
fashions, imbalance growth of products , manual way of crafting, procedural hardships etc. Even
after these problems the future of Indian gem and jewellery industry is quite promising as
more and more buyers across the world are turning to India as for their referred source of the
quality of gems and jewellery products
4.2 Recommendations:-

Few recommendations are:-

1. Special Economic Zones should be promoted by the government of India to increase the
domestic demand.
2. Gems and Jewellery units in SEZs can receive gold or other precious metals equal to the
value of jewellery exported, which would lead to decrease in exports.
3. The GJF (Gem and Jewellery Federation) and other jewellery institutions along with the
government should create awareness for marketing and branding this would lead to
increase in the domestic as well as international demand.
4. Improve standards of hallmarking an assaying for better quality.
5. Promotion of related industry like fashion, mining will in turn lead to promotion of Gem
and Jewellery industry as promotion leads to increase in the customer base which in turn
will increase the demand of both jewellery and its related industry.
Bibliography

 CARE RESEARCH
INAIAN GEM AND
JEWELLERY
INDUSTRY,2016
 www.ibef.org
 www.gjef.in
 www.indiabulls.com
 Journals of Ministry
of commerce.
 www.gjf.in