Business Environment

A.GAYATHRI

(1226113101)

GEMS AND JEWELLERY INDUSTRY

SUMMARY:

The Indian Gems & Jewellery Industry is the backbone of the economy by being one of the major contributors towards the export led growth of India. The industry has gained global popularity because of its talented craftsmen, its superior practices in cutting and polishing fine diamonds and precious stones and its cost-efficiencies. The two major segments of the industry are gold Jewellery (covers around 80% of the Jewellery market) and diamonds. India is one of the world’s largest manufacturers of cut and polished diamond with an aggregate contribution of approx. 60% of the world’s supply in terms of value and 80% in terms of volume. The industry contributes more than 14% towards the total export in India and provides employment to 1.3 million people directly and indirectly. The global market for gems and Jewellery is over USD 100 billion with major contribution coming from India, Italy, China, Thailand and USA. Export of Gems and Jewellery has maintained a steady rate averaging over 15% to the national exports.

INTRODUCTION:

An important emerging sector of Indian economy, gem and jewelry is a leading foreign exchange earner for the country. The country consumes around 800 tonnes of gold that account for 20 % of global gold consumption and nearly 600 tonnes of this goes into jewelry making. The Indian Jewellery market, which is estimated to be US$ 13.5 billion in fiscal 2006-07, accounts for 8.3 % of the global Jewellery sales, according to a study by KPMG.

The increase in purchasing parity of the middle class and surging income levels have resulted in consumption growth of gems and jewellery by about 11 % in the 5 year period preceding 2006-07. It also contributes over 15 % of the total exports of...