Gems & Gold business in india..

 India’s gold and diamond trade contributed ~7.5% to India’s Gross Domestic Product (GDP) and 14% to India’s total merchandise exports. The gem and jewellery sector is likely to employ ~8.23 million persons by 2022, from ~5 million in 2020.

Based on its potential for growth and value addition, the Government declared gems and jewellery sector as a focus area for export promotion. The Government has undertaken various measures recently to promote investment and upgrade technology and skills to promote ‘Brand India’ in the international market.

The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign investor or the Indian company do not require any prior approval from the Reserve Bank or Government of India.

Market size

In FY21, exports of gems & jewellery stood at US$ 25.30 billion. In March 2021, exports of gems & jewellery stood at US$ 3.42 billion.

The Government of India is aiming at US$ 70 billion in jewellery export in the next five years (until 2025), up from US$ 35 billion in 2020. In FY21, gems & jewellery exports in India stood at US$ 25.30 billion.

In FY22 (until October), India exported gems & jewellery worth US$ 23.65 billion compared with the US$ 11.482 billion recorded in FY21 (until October).

In October 2021, India exported gems & jewellery worth US$ 4.17 billion compared with the US$ 2.92 billion recorded in October 2020.

In FY22 (until September), India exported gems & jewellery worth US$ 18.98 billion compared with US$ 8.01 billion in FY21 (until September).

In September 2021, India exported gems & jewellery worth US$ 3.16 billion compared with US$ 2.4 billion in September 2020.

In August 2021, the GJEPC announced an ambitious target of raising exports of the sector to US$ 44 billion in FY22.

Growth in exports is mainly due to revived import demand in the export market of the US and fulfilment of orders received by numerous Indian exhibitors during the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC. In August 2021, the GJEPC announced an ambitious target of raising exports of the sector to US$ 44 billion in FY22.

Investments/Developments

Cumulative FDI inflows in diamond and gold ornaments in India stood at US$ 1,194.00 million between April 2000 and June 2021 according to Department for Promotion of Industry and Internal Trade (DPIIT).

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