Chapter Two

EXPORT MARKETING –
CONCEPT & SIGNIFICANCE

2.1 Introduction
2.2 Meaning of Export Marketing
2.3 Definition of Export Marketing
2.4 Features / Characteristics of Export Marketing
2.5 Significance of Export Marketing
2.6 Exports of Gems and Jewellery from India
2.7 Govt. and Institutional contribution to the export of Gems and Jewellery
2.8 Conclusion

P a g e 41
 CHAPTER TWO
EXPORT MARKETING – CONCEPT & SIGNIFICANCE

2.1 Introduction
Indian gems and jewellery industry has reached a foremost position in the global
market. The products of India’s exports of gems and jewellery are recognized
all over the world for their attractive workmanship. Use of modern art
machinery and automation through computer have gave a new cutting edge to
gems and jewellery manufacture. Over more than 2000 million people are
engaged in this industry either directly or indirectly. The industry is one of the
key foundations of the export growth of India. It is not only a major exchange
earner but also one of the fastest growing sectors. Recognizing massive
prospective of the sector, the Ministry of Commerce, Government of India,
declared gems and jewellery as thrust sector for export promotion. Main
objective and motto of The Gem and Jewellery Export Promotion Council
(GJEPC) is to presenting the gems and jewellery products to the international
market and helping and promoting exports. To achieve this, the council provides
data, news and detailed information about market and its facts and figures to its
members regarding inquiries of foreign trade, rules and regulations of trade and
tariff and import duties etc.

India caught and increased share of this market, and at present, India is the
world’s most important diamond cutting and polishing center. In current times,
India has progressively held a leading position in the global market in the cutting
and polishing of diamond. It is said that 9 out 10 cut and polished diamond sets
in jewellery are in India. India is accounting for 65 percent share of the global
polished diamond market in terms of value. Gold jewellery contributes more
than 30 percent and colored gemstones and others contribute more than 2
percent each, whereas rough diamond contributes more than 3 percent of total
share. The industry is rightly international one, with both suppliers and buyers
from many different countries. (GJEPC, 2010)1
According to study, India’s growing importance in global jewellery market is
expected to reach US $ 28.28 billion in 2015. According to the Geological

P a g e 42
survey of India, India has a boundless prospective for diamond deposits. From
this information and analysis, few diamond investigation companies are making
efforts to make India another target destination for diamond survey, study etc.
Maharashtra is on the top in the list of prospective states for diamond
assessment.

Export marketing means buying and selling of goods to other countries in the
world. The procedure is long with many formalities. Exporters have to follow
many long procedures and formalities as per the norms of the exporting country.
Export marketing is more difficult than national marketing because of
international restrictions, formalities, lengthy procedures and international
competition etc.When a business goes across the borders of a country, it
becomes much more complex in nature. Along with this, export marketing
opens up plenty of opportunities for earning huge profits and good amount of
valuable foreign exchange. Export marketing has broader economic importance
since it offers many advantages to the development of national economy. It
promotes economic / business / industrial development, and simultaneously
helps to earn foreign exchange and also equally ensures maximum utilization of
available natural resources. Every country takes part in International business,
and this has become a worldwide reality now. In Indiavarious policy initiatives
for encouraging exports and for participation in global markets have been taken
at different levels. This defiantly happens at mutual level. Every country has to
allow to other countries to participate in its markets and vice versa in the best
possible manner. This is a normal rule which every country has to follow under
the current global marketing environment. The process of economic
development of the country comes in danger, if they are not participating in
global marketing.2

As an effect of globalization today we exporting gems and jewellery worldwide

and became the leader in this area.To know more about the export of gems and
jewellery we must know the meaning of export marketing, its features and
significance etc. Present chapter is focusing on the first steps of export i.e. to
know the basic of export marketing.

P a g e 43
2.2 Meaning of Export Marketing

TRADE means Transfer of ownership of goods or services. Trade is sometimes

we called buying and selling or financial operation or barter system.
International trade is the exchange of resources, and services across worldwide.
According to International Trade, "exports" refers to selling goods and services
produced in the home country and selling it to other countries. The supplier of
such goods and services is known as an "exporter”3. In International Trade,
“imports" refers to buying goods and services produced in a foreign country or
in other countries. The buyer of such goods and services is known as an
"importer"

Export marketing means exporting goods to other countries of the world and
also have to follow the rules, regulations and procedures set by the exporting –
importing countries. Export marketing has more economic importance as it
offers many advantages to the national economy. It has bought back several
nations back from the dead.4

Marketing is defined as satisfying basic human needs for a profit by using all or
some of the resources of the organization. The difference between export
marketing and national marketing is basically that export takes place across
national borders and domestic marketing take place within the nation. This
directly leads to difficulties, which is not a case in national or domestic trade.
This means that you may face with barriers to trade that you will not have faced
before.eg. Different languages, politics, policies, laws, governments and
cultures etc. You may have to forget the product half-way across the globe and
to distant markets and pay the import duties imposed on these products by the
importing country. For export marketing we need to deal with the logistical and
documentation problems related to exports. These and many more problems are
faced during export marketing. .Export marketing also involves developing a
product which is appealing and will attract the foreign buyers and customers.
This offering includes a product that is offered at a certain price and that is made
available – distributed – to the foreign customer. At the same time, the offering
is conversed – or promoted – to the buyer using certain communication or

P a g e 44
promotion channels. These essentials – the product, price, distribution (also
referred to as the place) and promotion – are called the marketing mix.

EXPORT MARKETING is one of the significant areas of the marketing. The

exporter come to know about the likes, dislikes, tastes, and busing behavior of
the foreign consumers.

Functions of export marketing:

The functions of export marketing consist of those activities, which are
necessary for smooth flow of goods from the producers or sellers to the
purchasers or consumers.

The following are the functional areas of marketing:

1) International marketing research:

It is one of the important zone of the marketing. By international research
exporter come to know about the busing behavior likes, tastes dislikes, tastes
behavior of the foreign consumers marketing research is essential in export
markets because of many aspects such as differences in social, cultural,
economic and political background of distant markets Thus, marketing research
will help to recognize the right export for the company’s products.

2) Export production:
When producing the goods and services as per the needs and requirements of
foreign markets we can say that the fruits of marketing research and R&D can
be put into use, strict activity control must be kept while producing export
goods. Goods and services should meet to international standards, and then only
the export firm will last and succeed in the overseas market.

3) Marketing research:
Marketing research is must in export markets because of factors such as
diversities in social, cultural, economic and political background of distant
markets thus marketing research will help to identify the right export for the
company’s products.

P a g e 45
4) Export packaging:
Packaging for exports must be given due consideration because proper and
attractive packing not only protects the products but also sell the product in the
market , this is because attractive packaging has advertising value, if required
aid can be taken from Indian institute of packaging located at Marol- Andheri
Mumbai.

5) Export pricing:
Export pricing is also important feature of export management; a proper pricing
strategy speaks a firm’s survival and success in the home market and in the
export market. The exporter cost, demand and competitive environment
presence in the export market must be measured while fixing prices.

6) Advertising:
To promote the goods and services beyond the national boundaries, advertising
is the best tool for it. It makes understand the consumers about the qualities,
uses and benefits of the products which are available in the market. Use of
various media of advertising such as newspapers; magazines trade journals,
trade directories, televisions etc. by the exporter for selling in foreign markets.

7) Sales promotion:
Not only advertising but there are various sales promotion techniques such as
sale on installment basis, free gifts, contests, offering discounts etc. effective
selling through sales can also be use by exporters to increases sales in the
overseas market.

8) Export risk management:

Export involve many risk such as export cargo in transit etc. goods can be
insured with marine insurance company to reduce this risk of cargo. A more
important risk is that credit offered to overseas buyer, the government of India
has setup export Credit guarantee corporation (ECGC) to provide credit
insurance to protect exporters from consequences of payment risks.

P a g e 46
9) Financing:
Export demand a need for funds carry out marketing activities such as marketing
research sales promotion etc., these funds can be obtained as advances from the
customers, credit from suppliers, loans from institutions etc.

10) Branding:
Branding is the important marketing function of export. It means to give name
to the product. The reason of branding is to give a unique Identity to the product,
which is distinct from that of competitor. The catchy brand name can sell the
product in the market. Caution must be taken to see that the selected brand name
do not have negative meanings in foreign languages.

11) Transporting:
It refers to moving goods from one country to another country. the exporter
make of transporting export goods i.e.- sea transport and air transport .the nature
of goods ,cost transport, buyers requirement and such other factors efficient
export marketing requires the right choice of transport according the right type
of products can be produce to suit the requirements to the target markets.

12) Geographic factors:

The exporter must also consider geographical factor such as area, to geography,
climate and seasons. Again the availability of transport and port facilities must
be studied.

13) Social factors:

The attitude of the buyer and the society are to be taken note of while exporting
the goods. The exporter has to know about the social values and life styles of
the target consumer’s. Different lifestyles and attitude of the society may require
different marketing mixes and marketing programmers. Thus social factors are
also to be considered while exporting the goods.

14) Technological factors:

Technological factors are also consider while exporting the goods. Its level in
the export markets also affects export marketing, eg. Technology advanced

P a g e 47
nations enjoy higher standards of living. They expect high quality goods. The
exporter must well-thought-out the degree of technology advancement of the
importing countries and in view of that supply the goods that are match with the
requirement of the customers.

15) Trade factors:

The availability of distributors, the channel of distribution, the services provided
by the distributors etc. are the examples of trade factors .The trade factors must
be considered by the exporter while exporting. The exporter must understand
that it is trade factors that finally sell the product in the international market .one
need to have good distributors to sell goods in the export market.

While performing the exports functions some problems are face in this area.
Following are the Difficulties or problems in export marketing

Difficulties / problems in export marketing:

Export marketing is restricted to some extent due to certain difficulties or
drawback such as;
1) Difficulties of distance:
Export markets are extent over long distances. Obviously, the exporter will find
difficult in supplying to long distance markets. More the distance more will be
the transport cost. There are also possibilities delays in supply.

2) High risk and uncertainties:

In export there are political and commercial risk .The political risk includes
government instability, war, civil disturbances etc. The commercial risk
contains bankruptcy of the buyer and so on. Certain political and commercial
risk are covered by export credit guarantee corporation (ECGC).

3) Diverse languages, customs and traditions:

In export market there is a difference in languages, customs and traditions.
Exporters has to be selective, and he should deal in only such markets where he
can easily manage or overcome difference or diversities.

P a g e 48
4) Different currencies, weights and measures:
All countries in the world have their own system of weights and measures. Some
countries may measure in pounds others in kilograms or in some other measures.
Again every, country has its own currency. Each currency has heavy fluctuation
in exchange note.

5) Customs formalities:
There are number of formalities in export of goods from one country to another,
again there are customs formalities for the buyers i.e. customs formalities of the
importing country.

6) Trade Barriers:
Export trade is subject to a number of tariff and non-tariff barriers various
importing countries do impose aviaries of taxes and other formalities. This
creates difficulty for the smooth flow of goods and services among
countries.However efforts are now being a world trade organization (WTO) to
reduce and simplify a number of trade barriers.

7) Foreign exchange regulation:

The exporter has to give a declaration to the reserve bank of India (RBI) that
they will realize the full value of exports within a period of six months i.e.180
days.

8) Documentation formation:
There are a number of documents to be prepared in export trade.
In spite of above problems there are some motivational factors which encourage
the trades to participate in the export. Following are the motivational factors for
export marketing.

Motivations for Export Marketing

Nation or government should take many decisions along with Companies to
participate in export marketing. There are some elementary economic reasons
which affect the company’s decision regarding export participation. Such

P a g e 49
motives can be treated as motivators for export marketing. These motivational
factors for export marketing are as follows.
1) Rate of profit:
The profit in export business is normally higher as compare to rate of profit in
domestic marketing. The unit value recognition of export products normally
increases. Such progressive improvement in the unit value of realization is one
reason which acts as a motivator for exporting.

2) Sales and production stability:

Export marketing helps or assists in sales and production stability of a company.
Or a firm. For example, in the case of seasonal products, due to opposite seasons
be in certain export markets exporting may help to achieve sales stability. For
example - woolen clothing.

3) Inadequate domestic demand:

Inadequate national demand is taken care of by Export marketing. The aim of
any company is to use available production capacity at its maximum. But many
a times the level of domestic demand may be insufficient for the same, i.e. at
the optimum level. In such a case, the company enters in export marketing so
that the available production capacity will be utilized fully for meeting domestic
demand as well as demand from abroad. And thus acts as one of the prominent
motivational factor for export marketing.

4) Economic growth:
Another main reason for Export marketing is Growth. The foreign companies
attract and our business expands resulting in the growth prospective of foreign
markets which is very strong reason for the export. Some developing countries,
like China, and India, have been growing at a much faster rate than the
developed countries. With view of future potential in mind Many Multinational
companies are excited to start to intervene in such countries.

5) Reducing business risks:

Export Marketing directly reduces business risk. Variation in geography enables
to divide business risks among different export markets. Even by undertaking

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export marketing, risks in internal marketing can be reduced. A diversified
business spreads business risks among different markets.

6) Information and media Revolution:

The remarkable growth in the field of information and media has led to a
Revolution and thus export marketing plays a very important role. For example,
internet facility has given a big jump to an International trade. Now, business
firms can conduct International operations without much investment in setting
up elegant offices. Business activities in other foreign countries can be
conducted through internet network.

7) Strategic vision:
Some firms enter in export markets with a strategic view point. Systematic
international growth is their main business strategy. The desire to grow and
expand becomes the main source of motivation for export marketing and thus
the need to become more competitive.

8) Accepting social responsibility:

Social responsibility acts as a motivation for export marketing. Large business
houses accept this social obligation and actively participate in export marketing.
Export promotion is a collective responsibility of all social groups including
business enterprises.

9) Government policies:
Government rules, policies and Regulations may also motivate the companies
for export marketing. To take the benefit of available economic incentives, and
benefits provided by the government some companies export and invest in
foreign countries. Also due to government’s importance for import development
and increase foreign investment some companies go global. In India, many
companies export just to fulfill their export obligation.

10) W. T. O.:
Number of trade restrictions has reduced due to the efforts of W.T.O. The
member nations have benefited and has led to increase in trading of goods and

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services. For example, the custom duties have been reduced worldwide. This
has motivated business firms to enter in the International markets to a greater
extent.

11) Benefit of bulk selling:

Export business is usually in bulk capacity. Export orders are much bigger as
compared to orders in domestic marketing. Export business is undertaken in
order to take the benefits of selling in bulk i.e. in large quantities. It helps to
earn foreign exchange in large.

In brief, export marketing offers many benefits to exporting organization. Such

benefits encourage companies to participate in export marketing. The benefits
also act as motivators for export marketing.

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2.3 Definition of export marketing

According to B. S. Rathor;

“Export marketing includes the management of marketing activities for

products which cross the national boundaries of a country”.

“Export marketing means marketing of goods and services beyond the national
boundaries”.5

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2.4 Features / Characteristics of Export Marketing
To know the export marketing in detail one should know its Characteristics.in
this section the features of export marketing are explained as follows.
The main important features of export marketing are as follows.

1) Systematic Process – Export marketing is a systematic process of

developing and distributing goods and services in overseas markets. In
export marketing business has to carry out many marketing activities, such
as marketing research, product design, branding, packaging, pricing,
promotion etc. To carry out the various marketing activities, the export
marketing manager should gather the accurate information from the right
source; evaluate it appropriately and then take logical export marketing
decisions. 6

2) Large Scale Operations – Normally, export marketing is undertaken on a

large scale. Importance is given on large orders to gain cost-cutting in large
production and distribution of goods. The economies of large scale help the
exporter to quote competitive prices in the foreign markets. Exporting goods
in small quantities is costly because of heavy transport charges and other
formalities.7

3) Dominance of Multinational Corporations – MNCs are dominated Export

marketing. E.g. USA, Europe and Japan. They are having capacity to
develop worldwide contacts via their network and conduct business
processes and actions efficiently, professionally and economically. They
produce quality goods at low cost and also on massive scale. 8

4) Customer Focus –export marketing always focuses is on the customer. The

main work of exporter is to identify customers‟ needs and wants and
accordingly design and develop products to create and enhance customer
satisfaction. The focus on customer will not only result in higher sales in the
international markets, but it will also increase and enrich goodwill of the
firm as well as country.9

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5) Trade barriers – Export marketing is not free and easy like internal
marketing. There are numerous trade barriers because of the protective
policies of different countries. Tariff and non-tariff barriers are used by
countries for restricting import. The export must have a good knowledge of
trade barriers imposed by importing countries. 10

6) Trading Blocs – Trading blocs is also affect Export trade. Due to nation’s
mutual benefit and economic development certain nations are blocking
trade. Because of common external barriers the non-members face problems
in trading with the members of a trading bloc. Indian exporters should have
a good knowledge of important trading blocs such as NAFTA, European
Union and ASEAN.11

7) Three – faced competition –, there are three-faced competition in export

markets, i.e., competition from the three angles – from the exporters of
competing nations, from the local producers of importing country and from
the other suppliers of the exporter’s country. 12

8) Documentation – in Export marketing there are various documentation

formalities. Various authorities such as customs, port trust etc. to whom
Exporters require to submit various documents. The documents include –
Shipping Bill, Consular Invoice, and Certificate of Origin etc. 13

9) Foreign exchange regulations – Export trade is subject to foreign exchange

rules and regulations executed by different nations. These rules and
regulations relate to payments and collection of export proceeds. Such
restrictions affect free movement of goods among the countries of the
world.14

10) Marketing – mix Export marketing requires the right marketing mix for the
target markets, i.e. exporting the right product, at the right price, at the right
place and with the right promotion. The exporter can adopt different
marketing – mixes for different export markets, so as to maximize exports
and earn higher returns.15

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11) International marketing Research – Export marketing requires the
backing of marketing research in the form of market study, product analysis,
product research and development as it is extremely competitive. Various
challenges, identification of needs and wants of foreign buyer in export
marketing can be dealt with through international marketing research.16

12) Spreading of Risks – Export marketing supports to spread risks of business.

Normally export firms sell in a number of overseas markets. If they are
affected by losses in one market, they may be able to spread business risks
due to good profit from some other markets. 17

13) Reputation – Export marketing brings name and goodwill to the export firm
and to the country. The country of its origin the gets reputation in the
international markets. The reputation enables the export firm to command
good sales in the domestic market as well as export market.18

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2.5 Significance of Export Marketing

Exports are important for all countries whether developed or underdeveloped.

The need / importance / advantages of export marketing can be explained from
the viewpoint of a country and that of business organization.

Need / Importance / Advantages of Export Marketing at the National Level:

1) Earning foreign exchange – Exports earn valuable foreign exchange to the

exporting country, which is mainly required to pay for import of capital
goods, raw materials, spares and components as well as importing advance
technical knowledge.19

2) International Relations – Almost all countries of the world want to prosper

in a peaceful environment. One way to maintain political and cultural ties
with other countries is through international trade. 20

3) Balance of payment – Large – scale exports solve balance of payments

problem and enable countries to have favorable balance of payment
position. The deficit in the balance of trade and balance of payments can be
removed through large-scale exports.21

4) Reputation in the world – A country which is leading in the field of

exports, commands a lot of respect, goodwill and reputation from other
countries. For example, Japan commands international reputation due to its
high quality products in the export markets. 22

5) Employment Opportunities – Export trade calls for more production.

More production opens the doors for more employment. Opportunities, not
only in export sector but also in allied sector like banking, insurance etc. 23

6) Promoting economic development – Exports are needed for promoting

economic and industrial development. The business grows rapidly if it has

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 access to international markets. Large-sole exports bring rapid economic
development of a nation.24

7) Optimum Utilization of Resources – There can be optimum use of

resources. For example, the supply of oil and petroleum products in Gulf
countries is in excess of home demand. So the excess production is exported,
thereby making optimum use of available resources. 25

8) Spread Effect – Because of the export industry, other sectors also expand
such as banking, transport, insurance etc. and at the same time number of
ancillary industries comes into existence to suppo0rt the export sector.26

9) Higher standard of Living – Export trade calls for more productions,

which in turn increase employment opportunities. More employment means
more purchasing power, as a result of which people can enjoy new and better
goods, which in turn improves standard of living of the people. 27

10) Reputation – An organization which undertakes exports can bring fame to

its name not only in the export markets, but also in the home market. For
example, firms like Phillips, HLL, Glaxo, Sony, coca cola, Pepsi, enjoy
international reputation.28

11) Optimum Production – A company can export its excess production after
meeting domestic demand. Thus, the production can be carried on up to the
optimum production capacity. This will result in economies of large scale
production.29

12) Spreading of Risk – A firm engaged in domestic as well as export

marketing can spread its marketing risk in two parts. The loss is one part
(i.e. in one area of marketing) can be compensated by the profit earned in
the other part / area.30

13) Export obligation – Some export organization are given certain

concessions and facilities only when they accept certain export obligations

P a g e 58
 Largescale exports are needed to honor such export obligations in India,
units operating in the SEZs / FTZs are expected to honor such export
obligations against special concessions offered to them.31

14) Improvement in organizational efficiency Research, training and the

experience in dealing with foreign markets, enable the exporters to improve
the overall organizational efficiency. 32

15) Improvement in product standards - An export firm has to maintain and

improve standards in quality in order to meet international standards. As a
result, the consumers in the home market as well as in the international
market can enjoy better quality of goods.33

16) Liberal Imports Organizations exporting on a large-scale collect more

foreign exchange which can be utilized for liberal import of new technology,
machinery and components. This raises the competitive capacity of export
organizations.34
17) Financial and non-Financial benefits In India, exporters can avail of a
number of facilities from the government. For example, exporters can get
DBK, tax exemption 7 etc. They also can get assistance from export
promotion organizations such as EPCs IIP, etc. 35

18) Higher profits – Exports enable a business enterprise to earn higher prices
for goods. to raise the profit margin , exporters can charge higher prices than
those charged in the home market by offering quality products. 36

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2.6 Exports of Gems and Jewellery from India

India’s gems and jewellery industry is a glowing star of the economy, and one
of the important foundations of the country’s growth due to export. It is a most
important foreign exchange earner and one of the fastest growing sectors, which
accounted for 14 percent of India’s total merchandise exports during FY 2011-
12. The industry has recorded a notable growth over the last four decades, with
exports developing from US$ 28 million in 1966-67 when the Gem & Jewellery
Export Promotion Council (GJEPC) was established, to US$ 42.84 billion in
FY 2011-12.37

Diamonds account for 54 percent of the total export of the industry, with gold
jewellery contributing 38 percent and colored gemstones and others
contributing 1 percent each, whereas rough diamond contributes 4 percent of
the total share. The industry is a truly global one, with both suppliers and buyers
from many different countries.38

The UAE (44 percent), Hong Kong (25 percent) and USA (12 percent) are
among the major buyers, while Belgium, which accounts for 21.55 percent of
all imports of raw materials, is by far the major supplier.

Diamonds: Undisputed Leadership

The diamond manufacturing sector is a major contributor of the industry
because of its commendable performance and employs nearly one million
people across the country. India exported cut and polished diamonds worth US$
23.30 billion in 2011-12.39

The industry has emerged from its small roots in the ‘50s and has established
itself as the world’s largest manufacturing Centre of cut and polished diamonds
since the last many years, and is now contributing 60 percent of the world’s
supply in terms of value and almost 85 percent in terms of volume. Mumbai,
Surat and Jaipur being major cities in India where, 11 out of every 12 diamonds
set in jewellery, are processed. They have reached here because of various
factors. The most important being the skill of the Indian skilled worker. 40The

P a g e 60
unhampered efforts of Indian entrepreneurs, who has taken on the task and have
been working hard to set up this industry and thus have contributed to its growth
and development in large manner. They have gone on to create a marketing set
up and network worldwide, which is truly complicated. At the same time the
support of financial Institutions of the country has added and made a strong
financial base.

Today, after creating a significant place for itself in the diamond world with
small diamonds, India is also developing skills for cutting and polishing larger
diamonds and fancy cuts. Indian is no far behind and is at par with the world’s
best and are at the age of developing technology and using laser machines,
computerized yield planning machines, advanced bruiting lathes, etc.

Jewellery:
In the recent years Indian jewellery sector has made an excellent advancement
and India is developing as the fastest growing jewellery exporter in the world,
with an average growth of nearly 15-20 percent each year over the last ten years.
Exports of gold jewellery in 2011-12 touched US$ 16.5 billion from just US$
486 million in 1994-95.41

But, the development of the branded jewellery segment is still in its primary
stage, mainly because the age old jewellery designing sector has been
dominated by home grown retail business or the traditional family jeweler. The
Bureau of Indian Standards introduced The Hall Marking to institutionalize
international bench marking for quality assurance and also to prevent the
fraudulent activities that will go a long way in building a reliable Brand India.
A few Indian jewellery brands are marking their International ways, having
already set themselves in the existing domestic market.

India is believed 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 center for diamonds, with the cutting and polishing industry being
well supported by government policies. Moreover, India exports 95 percent of
the world’s diamonds, as per statistics from the Gems and Jewellery Export

P a g e 61
promotion Council (GJEPC). India's Gems and Jewellery sector has been
42
contributing in a big way to the country's foreign exchange earnings (FEEs).

The Indian Gems and Jewellery (G&J) sector is one of the largest in the world,
contributing around 29 percent to the global jewellery intake. The sector
provides employment to over 2.5 million and is home to over 300,000 gems and
jewellery players. The sector contributes 6-7 percent to the Gross Domestic
Product (GDP) of the country.43

Indians have always been good judge of precious stones and ornaments. Trade
secrets of the jewellery business have been passed over generations, ensuring
continuity of traditional craft. Thus, India is today the world’s largest diamond
cutting and polishing center. India has been adding modern and latest techniques
to its traditional know how that are more in adjust with global market trends.

India is the most preferred country in terms of gems and jewellery export. The
facts listed below give us an idea of India’s position on the global gems and
jewellery export map. Indian gems and jewellery are exporting across
continents.44

 Net G&J exports from India stood at US$ 35.54 billion in April 2016-March
2017 (year-on-year growth of 9.09 percent).45
 Over April 2016-March 2017, exports of silver jewellery registered a growth
of 35.87 percent, cut and polished diamonds registered a growth of 10.24
percent; while gold jewellery registered a growth of 1.92 percent. 46
 India is the largest cut and polished diamond manufacturer in the world and
exports 93 percent of its production.47
 India exported 75 percent of the world’s polished diamonds in 2016. 48
 India exports over 95 percent of the world’s processed diamonds. 49
 India is the world’s largest gold consumer, and third largest diamond
consumer, accounting for 29 percent share and 8 percent share respectively,
of the total global consumption.50

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 According to GJEPC Chairman Praveen Shankar Pandya, gems and
jewellery exports are likely to witness a growth of about 10 percent in FY
2017-18 due to increasing demand in the US and Europe.51
 The domestic G&J market is expected to grow at a rate of compound annual
growth rate (CAGR) of 13 percent to US$ 80-85 billion mark by 2018, from
US$ 50 billion in 2015.52

Exports of gems & Jewellery-total in India decreased to 20263.73 INR TML in

January from 21013.76 INR TML in December of 2016. Exports of gems &
Jewellery-total in India averaged 15920.40 INR TML from 2008 until 2017,
reaching an all-time high of 30307.49 INR TML in September of 2016 and a
record low of 6332.58 INR TML in December of 2008.53

Gems and jewellery (G&J) exports declined in 2015-16 to the lowest in six
years, due to a slowing global economy which reduced the demand for luxury
goods. Data from the Gems & Jewellery Export Promotion Council (GJEPC)
showed India's net G&J export at almost $32 billion (Rs 2.1 lakh crore), as
compared to $36.2 billion the previous year, down 5.3 percent in dollar terms
and 11.7 percent With an estimated employment of 3.5 million in this sector,
both domestic and export, G&J claims to be the second largest employer in
India, after the petrochemical.54

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2.7 Government and Institutional contribution to the export of Gems
and Jewellery

The Gems and Jewellery sector plays an important role in the Indian economy,
contributing around 6-7 percent of the country’s GDP. One of the fastest
growing sectors, it is extremely export oriented and labour intensive.

Based on its prospective for growth and value addition, the Government of India
has declared the Gems and Jewellery sector as a focus area for export promotion.
The Government has recently undertaken many measures and actions to
promote investments and to upgrade technology and skills to promote ‘Brand
India’ in the international market.

The Government of India has viewed the 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.

Government Initiatives
The Government of India timely regulates and supports this sector in general.

The Government of India (GoI) has been working to develop the gems and
jewellery industry in India through several initiatives.

 The Indian gems and jewellery export industry began in the 1960s, when the
Government of India introduced the Replenishment (REP) license, allowing
any importer to import rough or raw diamonds worth 80 percent of the value
of his total exports. The REP license in this way also provided the foreign
currency needed to purchase rough or raw diamonds to manufacture the
required type of polished or finished diamonds. In the beginning, a 45
percent customs duty was levied on rough diamond imports, but this duty
was reduced to NIL in the Union Budget of 2003-04.55

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 The EXIM Policy for 2002-07 contains a special focus on exports of gems
and jewellery through market access initiative schemes, duty free imports
and appropriate adjustments in value addition norms. 56

 The government has therefore set up various special economic zones (SEZ)
for gems and jewellery industry and provides specific incentives to the units
in SEZs. Gems & jewellery units in SEZs and Export Oriented Units (EOUs)
can receive precious metal, viz, gold/silver/platinum prior to exports or post
exports equivalent to value of jewellery exported. This means that they can
bring export proceeds in kind against the present provision of bringing in
cash only. In order to give a boost to exports of gems and jewellery,
Government took major policy initiatives during 2004-05.57

 The Government has lowered import duty on platinum from US$ 12.2 per
10 gms to US$ 4.64.58

 The Government has Exempted rough and coloured precious gems stones
from customs duty at the first stage itself instead of claiming
reimbursements later59

 Rough semi-precious stones are already exempted, aimed to further increase

the exports of studded jewellery and platinum jewellery60

 The policies for this sector announced in the Foreign Trade Policy include:
 Duty free re-import entitlement for rejected jewellery up to 2 percent
of Freight on Board (FOB) value of exports
 Increased duty free import of commercial samples of jewellery to
US$ 2232.1
 Import of gold of 18 carat and above under the replenishment
scheme61
The focus here is clearly on promoting export, but the liberalized policy regime
definitely will help businessmen to perform better in the national market as well
as will improve their overall competitiveness internationally also. 62

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Current Government Initiatives63
 In the Union Budget 2017-18, the Government of India, offered tax cuts for
the middle class and other sections of society (5 percent for the Rs 250,000-
500,000 tax slab; which was 10 percent initially). All these measures will
increase the demand, which will be inturn favorable to the gems and
jewellery industry.64

 The Government of India’s proposal to cut corporate tax rates to 25 percent

for micro, small and medium enterprises (MSMEs) having annual turnover
up to Rs 50 crore (US$ 7.5 million) will benefit a large number of gems and
jewellery exporters from MSME category. 65

 The gold spot exchange scheme announced by the Government of India

could help in India’s participation in determining gold price in the global
markets.66

 More and more people are encouraged to use plastic money, debit/ credit
cards for buying jewellery, due to the Demonetization move. This is a
positive sign for the industry and significant in the long run and will help
create more transparency.67

 The Reserve Bank of India has announced rules for gold monetization
scheme, which allows individuals, trusts and mutual funds to deposit gold
with banks and get interest in return, so that gold import is reduced. 68

 Gold import norms have been liberalized by the Reserve Bank Of India.
Because of this, star and premier export houses can import the commodity,
and at the same time banks and nominated agencies offer gold for domestic
use as loans to bullion traders and jewelers. 69

 A Memorandum of Understanding (MoU) has been signed between India

and Russia to source data on diamond trade between the two countries.
Where India is the top global processor of diamonds, while Russia is the
largest rough diamond producer. The Indian Government is planning to

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 establish a special zone with tax benefits for diamond import and trading in
Mumbai, with a strong view to develop Mumbai city as a rival to Antwerp
and Dubai, these two are currently the top trading hubs for diamond. 70

 There is shortage of skilled manpower and therefore the Gems and Jewellery
Skill Council of India is planning to train over four million people till 2022.
The aim of the council is primarily to train, skill and enhance 4.07 million
people by 2022. There is a plan to tie-up with the existing training institutes
including Gemological Institute of America (GIA) and Indian Gemological
Institute (IGI), and also to set up of new institutes in major cities. This
initiative by the council is welcome step. 71

 A jewellery park on Thane-Belapur Road is proposed to be developed by

GJEPC which is around five kilometers from Mumbai. Its main aim is to
boost the Mumbai-based jewellery industry by providing modern facilities
and services72

 Indian Institute of Gems & Jewellery (IIGJ) Mumbai, a project of the

GJEPC, has come-up with three-year Graduate Program in Jewellery Design
& Manufacturing Techniques with an introduction to Management studies
in collaboration with Welingkar Institute of Management. 73

 In September 2015, the Government of India approved the gold

monetization plan in the form of revamped Gold Deposit Scheme (GDS)
and the Gold Metal Loan (GML) Scheme to mobilize tons of gold stored in
households and temples across the country. The Union Cabinet also
approved the introduction of Sovereign Gold Bond Scheme, under which
gold bonds denominated in grams of gold will be issued to individuals by
the Reserve Bank of India (RBI), in consultation with Ministry of Finance. 74

 Exemption of Service Tax on services (related to exports) which are

rendered abroad.75

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 Introduction of re-import of Diamonds and Jewellery exported on
consignment basis.76

 Incorporation of the testing facility at International Diamond Laboratory,

Dubai, to reduce transaction costs for the diamond sector. 77

 Duty free import entitlement of tools, machinery and equipment Other

Provisions.78

 Nil custom duty to import rough and polished diamonds.79

 Import of precious metal scrap and used jewellery for melting, refining and
re-export of jewellery.80

 Indian Government’s decision to allow 51 percent FDI in single brand retail

stores has led to a number of international branded stores actively
considering an entry into the Indian jewellery retail market. 81

 25 percent contribution to the project proposal for training programs

Contribution of 25 – 50 percent of the cost component of the proposal in
other matters. Industrial Park (Provision for the location of minimum 30
industrial / service units) – 20 percent of fixed capital investment up to
maximum of INR 100 lacs Mini Industrial Park (Minimum 11 units) 25
percent of fixed capital investment up to a maximum of INR 100 lacs. 82

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Institutional contribution to the export of Gems and Jewellery:

It is seen that the Government, the union, as well as the institutes are working
very hard to give maximum support to the gems and jewellery industry to
achieve a remarkable global growth. They are not only providing financial
support but have also started giving education and have started educational
courses especially for this industry. Following are the major institutions who
have played a major role for the betterment and overall development of this
industry.83

1) The Gem & Jewellery Export Promotion Council

The Indian Gem & Jewellery sector is one of the most dynamic and fast growing
sectors of the Indian Economy.84

It is a worldwide fact that India is the world's largest source for trained, skilled
and adaptive manpower. The government’s liberalized policies have provided
on the whole a conducive environment for bi-lateral businesses, and it almost
contributes to the continuous growth of this sector. Contributing around 19
percent to the overall Forex income source of the country, the industry's growth
over the years, can be primarily due to the continuous efforts put in by the Gem
& Jewellery Export Promotion Council (GJEPC). 85

This apex body of the gem & Jewellery industry has played a pivotal role in the
evolution of the Indian gem and Jewellery industry to its present scenerio. 86

The over the years has India to become the world's largest manufacturer of cut
and polished diamonds and now it is becoming the leading international trading
center, India's gems and Jewellery sector is now set on a growth graph
undoubtedly. The exports grew by 38 percent to $14,329.23 million for January-
December 2004 period as compared to $10,392.83 million in the corresponding
period. The GJEPC aims to boost exports of gems and Jewellery to US $20

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billion by 2007 and develop India as the only one-stop-shop for gems and
Jewellery.87

Also, in its formation years is the Bharat Diamond Bourse, one of the largest
monoliths ever to be built in Asia.

The Bharat Diamond Bourse is situated in the urban conglomerate of place,

people where all the activities relating to diamond trading is undertaken on a
massive scale. It is Built with world-class facilities and aims to provide to the
members of the Indian diamond community all the Research and development
aspects, the complex aims to work and improve the already predominant
position of the Indian diamond industry in the International market. 88

It is seen that GJEPC is continuously working towards creating a good number

of artisans/designers trained to sustain at the international standards so as to
consolidate the Indian Jewellery industry and establish it as a leading global
player in the Jewellery arena. Keeping this is mind the Council has recently
organized a Trends Forecast Seminar. The aim of which was to give a complete
overview of what influences, and inspires the world’s leading designers and
how customers respond to social changes. The trends and human behavior that
brings about the change. Detailed researched insights into national and
international markets were presented at the seminar by some of the best
international trends forecasting experts. 89

With strength of over 6,500 members spread across the country, the Council is
mainly involved in introducing the Indian gem & Jewellery products to the
global market and simultaneously promote their exports. With the aim to
achieve the goal, The Council provides market information to its members
regarding foreign trade inquiries, trade and tariff regulations, rates of import
duties, and information about Jewellery fairs and exhibitions all over at the
national and International markets.

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The role of GJEPC can be broadly classified under the following categories:

 Trade Facilitator: The institution acts as a trade facilitator. And to do so

the Council undertakes direct promotional activities like organizing joint
participation in international Jewellery shows, sending and hosting trade
delegations, and sustained image building exercises through advertisements
abroad, publications and audio-visuals.90
 Advisory Role: It advises on the market trends and in this way works for
the betterment of the sector directly and indirectly. A crucial area of activity
of the Council has also been aiding Better interaction and understanding
between the trade and the government is the crucial area of activity for
which the Council is aiming at and it helps to do so to the best possible
extent.
 Nodal Agency for Kimberly Process Certification Scheme: GJEPC has
been appointed as the Nodal Agency in India under the Kimberly Process
Certification Scheme.91
 Training and Research: The Gems & Jewellery Export Promotion Council
has a number of training institutions under it. These provide regular and
part-time training in various aspects of manufacture and design in major
cities like Mumbai, Delhi, Surat and Jaipur. 92
 Boosting Exports: Along with the other the promotional activities it is seen
that the GJEPC undertakes the organizing of joint participation of member
- exporters in some important international exhibitions and puts up
promotional stalls in others. The council participates in all major and
important exhibitions/trade fair in leading countries like USA, Hong Kong,
Latin America and Middle East and has also begun to appoint consultants
in important regions in other parts of the world.93

The Gem & Jewellery Export Promotion Council, set up by the Ministry of
Commerce and Industry in 1966, has played a pivotal role in the evolution of
the industry to its present stature and not looked back in its efforts to do so. For
this it has been effectively molding the scattered efforts of individual exporters
into a powerful engine driving the country’s export-led growth. Today, the
Council has 5,300 members spread all over the country. 94

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The Council undertakes direct promotional activities. To do so it organizes joint
participation in international jewellery shows, sends and hosts trade delegations,
and undertakes image building exercise through advertisements abroad,
publications, audio visuals/corporate literature, members’ directory, etc.95

It also directly helps intra-regional investments by encouraging co-operation

and joint ventures in jewellery manufacturing, especially in the various
EPZs/SEZs created by the Ministry of Commerce which offer special facilities
for Foreign Direct Investments in Jewellery units through foreign collaborations
and partnerships.96

The Government has now recognized the inherent strength of this sector in
terms of its employability potential has taken major initiatives to strengthen
institutional linkages. Even to boost the economic importance of this sector.
With a view to enhance the skill levels of the workers and to commensurate with
the requirement of the industry two centres are being set up at Domjur in West
Bengal and Khambat in Gujarat.97

With the long term objective the Government is also encouraging international
partnerships and collaborative ventures for adopting a diversified approach in
the jewellery sector. Collaboration with the Antwerp World Diamond Centre
has also been sought to strengthen skills in diamond and gem stones grading,
certification, research and development, cutting and polishing and setting up
state-of-the –art training centres in India.98

The Gems & Jewellery Export Promotion Council, in its endeavor to promote
India as the “Innovation & Design Destination” for jewellery, presents the India
International Jewellery week (IIJW). The show is held over a period five days.
Extravagant 32 shows are put up together of major jewellery designers of
India. IIJW is an initiative to showcase India’s finest in jewellery, be it design
or innovation supported by top of the line craftsmanship, technology and quality
to customers around the globe.99

The Jewellery week is followed by the India International Jewellery Show. This
show has now grown significantly to become the second largest Jewellery Expo
in the Asia –Pacific region. It has thrived hard and now has acquired the
reputation of being the most prominent sourcing show in India, great

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participation from exhibiters, exporters, buyers and trade visitors is expected
every year. The 29th edition of the India International Jewellery Show, which
was inaugurated by the Union Minister for Commerce & Industry, Mr.Anand
Sharma on August 23, has attracted participation of over 800 exhibitors with
1800 stalls, with exclusive country pavilions of Thailand, Israel, Turkey,
Belgium and UAE.100

The India International Jewellery Show is an amalgamation of the ingenuity of

handcraft, skill, technology, innovation and creativity of our brilliant minds that
truly make India.101

2) The Indian Institute of Gems & Jewellery

The Indian Institute of Gems & Jewellery Mumbai was established in February,
2002 as a non-profit registered company Under Section 25 of the Indian
companies Act 1956. Earlier to this, The Gem & Jewellery Export Promotion
Council was running a jewellery training Institute, known as ‘JPDC’ –
(Jewellery Product Development Centre ) at Tardeo, Mumbai, since 1985.
Subsequently with the formation of IIGJ Mumbai, JPDC was merged with it.
Currently, IIGJ Mumbai in its’ present form has two training Institutes at
Mumbai – Andheri Campus and Tardeo Centre.102

The Institute is governed by a legally constituted Board of Directors, all of

whom are Members of the Gem & Jewellery Export Promotion Council
(GJEPC), India. All directors have strong ties with the Jewellery industry and
are impartially committed to furthering the Institutes’ goals and mission. 103

In accordance with its Articles of Association of IIGJ Mumbai, the Chairman

of the Board of Director’s must be a member of the Council. Day to Day
management of the Institute is undertaken by a ‘Head of the Institute’,
responsible to the board.104

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Non- IIGJ Mumbai has now two training centre’s – at Andheri MIDC and at
Tardeo. Both the centre’s are:105

 Profit Organization committed to excellence in education.

 A Project of the Gem & Jewellery Export Promotion Council.
 Entirely supported by the Industry - By the Industry, For the Industry.
 3rd largest full- fledged Institute offering courses in all aspects of Jewellery
Manufacturing in Asia
 1st full-fledge Jewellery Institute in India headed by renowned experts
 Located near SEEPZ, the powerhouse of India's booming Jewellery
industry.

IIGJ Mumbai is having106

 Highly talented and experienced faculty in Jewellery Techniques

 Modern classrooms and a well-stocked library
 Workshops with the latest technology for focused and practical training
 Regular factory visits and interaction with industry experts

Mission & Vision of IIGJ Mumbai

 The IIGJ Mumbai Mission: 107

"To harness the creative energy of youth and foster a commitment to

professionalism, quality and excellence to meet the rising demand for skilled
manpower as India develops into the undisputed world leader of the gems and
Jewellery industry"112

 The IIGJ Mumbai Aim:

The primary objective of GJEPC for setting up the Institute is to prepare trained
professionals to cater to the various needs of the Gems & Jewellery Trade and
Industry. The endeavor of the Indian Institute of Gems & Jewellery, Mumbai
(IIGJ) Mumbai has been to provide quality training with appropriate
Certification/Diploma to aspiring young students in Jewellery Designing &
Manufacturing.108

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 The IIGJ Mumbai Purpose: 109

a) To bring about major change in the existing Jewellery Industry in our

country.
b) To train and provide sophisticated and high technically sound executives &
workforce in the industry.
c) To meet the fast growing demand for trained and skilled professionals in the
industry.
d) State of the art training to familiarize students with latest techniques

 The Gem & Jewellery Industry is poised for take-off: 110

a) Jewellery exports have registered growth of over 400 percent in the last
decade
b) Leading American and European retailers source products from India
c) Growing demand in the local market for modern, machine-made Jewellery
d) 200 modern factories; 30,000 positions; 10,000 vacancies - Numbers
expected to DOUBLE in the next few years
e) Huge demand for personnel due to the massive shortage of trained and
skilled professionals
f) Attractive starting pay-scales and scope to rise rapidly to senior positions

 IIGJ plans includes: 111

To get the full advantage of this thrust, the Institute is gearing up to meet the
global demands. Shortly, IIGJ will have

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a) Developing and implementing microphotographs of Diamonds and
gemstones for future reference
b) Advanced development is planned for acquiring high end instruments for
identification of HPHT diamonds as well as certification areas.
c) Undertaking industrial projects on consultancy on turnkey basis
d) Annual Career Fair for students
e) Online Placement Service
f) Alumni Association
g) Quarterly Newsletter
h) Interface with industry

3) IDI SURAT

The Institute is leading one and recognizes the "Indian Diamond Industry" as a
major source of employment in a priority sector like export production with a
wide scope for substantial value-addition for the country. Keeping this key
factor in mind the establishment of the Indian Diamond Institute was
conceptualized and later put into effect.

The IDI is a Society registered under Societies Registration Act, 1860 and also
under the Bombay Public Trust Act, 1950.112

Objective

The main aim of the Indian Diamond Institute as seen is to create

professionalism among the industry and to see to organize the development of
a higher level of skill in artisans. The Institute is expected to maintain continuity
and improve upon various skills involved in diamond processing. Development
of new tools, equipment and technology in diamond processing is also given
importance. Other related subjects are seen dynamically matching and marching

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ahead with the developments elsewhere in the world this being its other major
objective. 113

4) Gem Testing Laboratory (GTL) Jaipur

A project of the Gem & Jewellery Export Promotion Council (GJEPC), was
established on 12th August 1972, under the Convenorship of (Late) Padmashri
Khailshanker Durlabhji, founder Chairman of the Gem & Jewellery Export
Promotion Council. GTL is one of the older laboratories of the world which
offers gemological services to both domestic as well as overseas clients. During
the course of time and changing technology, various services and features of
GTL identification reports have been upgraded continuously. 114

The main functions of GTL Jaipur are gemstone certification along with
research & development of techniques for identification of new gem materials,
synthetics and treatments. The results of R&D are shared with the world through
participating in conferences and publications in various trade and gemological
journals. GTL also acts as an information center for various research
institutions, government departments, etc.115

At GTL Jaipur, the strictest of guidelines are followed to ensure the authenticity
of gemstones and possible treatments in the most scientific and reproducible
manner through combination of state-of-art analytical techniques and extensive
practical skills in interpreting gemological data. This not only provides proper
disclosure of the stone, but also ensures public trust in gems and jewellery by
preserving the highest standards of integrity, knowledge and expertise. 116

A Lab Information Circular (LIC) is circulated quarterly featuring latest gem

news, research and gem related articles.

GTL is administered by the Technical & Education Sub-Committee (Jaipur)

comprising of six members who meet regularly to discuss the general policy and
direction of the laboratory.117

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Analytical Methods

New deposits of well-known gemstones or of some new and unusual gems and
minerals are being discovered on a routine basis, which obviously reaches the
world gem markets, such as Jaipur. Similarly, new synthetics and treatments are
under regular developments and hence, their identification has become more
challenging and complicated than ever before. All the reports issued at GTL are
based on a thorough research using ‘years of experience’ on the many analytical
methods including visual examination with the aid of traditional gemological
tools and sophisticated scientific spectrometers. The gemologists at GTL have
a combined work experience of more than 25 years and each year, thousands of
various types of gemstones go through their eyes. 118

Traditional gemological tools and methods play an important role in

determining the nature of mineral species, which mainly involve determining
the physical (such as specific gravity, hardness, cleavage, etc.) and optical
constants (such as optic character, pleochroism, refractive index, birefringence,
optic sign, absorption spectrum, fluorescence reactions, etc.) and comparing
with a table of constants, available in common gemological texts. These
methods are still widely used in most of the gemological labs, but they fail to
provide answers to many questions raised by the advanced and complex
methods of treatments and synthesis of gemstones. They, however, nicely
complement the sophisticated and advanced analytical tools, which have now
become essential components of a modern gemological lab, such as Gem
Testing Laboratory, Jaipur. 119

Some of the sophisticated methods of analysis used at the Gem Testing

Laboratory, Jaipur include Fourier Transform Infrared (FTIR) Spectrometry,
Laser Raman Spectrometry (LRS), Energy Dispersive X-Ray Fluorescence
(EDXRF) Spectrometry, Ultra Violet- Visible- Near Infra-Red (UV-Vis-NIR)
Spectrometry and Diamond View imaging. 120

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5) Gem & Jewellery Skill Council of India (GJSCI)

Gem & Jewellery Skill Council of India (GJSCI) is the nodal entity for skill
development of the Indian Gems & Jewellery industry. Formed in 2012 under
the aegis of the National Skill Development Corporation (NSDC) and currently
functioning under the Ministry of Skill Development & Entrepreneurship
(MSDE). 121
It has a wide scope. And covers skilling under all the areas and functions of the
industry such as diamond processing, colored gemstone processing, jewellery
manufacturing, wholesale, retail and exports. 122

Gems and Jewellery industry currently employs about 4.64 million employees
and is expected to employ an additional of 3.59 million by 2022. 123
A huge leap.

Mission
To create an organized training and development ecosystem in the gems and
jewellery industry to produce skilled workforce at equal level when compared
with global quality standards124

Objectives 125
 To identify skill development needs in the Gem and Jewellery sector in
India.
- study reports for Gems and Jewellery Industry

 To determine skills / competency standards and develop curriculum as per

world Industry standards by creating National Occupational Standards
(NOS) for every job role prevailing in the Gem & Jewellery industry.
- Developed 117 QP / NOS covering 5 sub-sectors.

 Initiate Recognition of Prior Learning (RPL) across India to Recognize the

Prior Learning of artisans and provide them with suitable opportunities.
- 22,640+ artisans have been certified across India under RPL

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 Initiate Dakshagraam across India to upgrade manufacturing setups with
latest technologies to improve productivity and reduce gold loss.
- Affiliate institutes imparting training in the Gems and Jewellery
industry.
- More than 200+ training partners affiliated across India

 Establish Academies of Excellence in the sector PAN India.

- 3 Academies of Excellence

6) The Gemmological Institute of India (GII)

It was in the year 1965, some of the young, enthusiastic and far sighted gem
traders met in an old office room in Zaveri Bazaar Bombay to discuss and give
shape to their dream of setting up a gemmological institute in the country. They
were none other than Shri Kirtilal K. Doshi, Shri Rajendrakumar A. Shah, Late
Shri Himmatbhai C. Jhaveri, Shri Padmakant H. Jhaveri and Shri Pravin M.
Nanavati. Due to their untiring efforts over the next six years, resulting the
Gemmological Institute of India was born in April 1971. The Gemmological
Institute of India (GII) was established under the aegis of the Gem & Jewellery
Exporters’ Association, Mumbai. The institute is registered as a non-profit
Public Charitable Trust. 126

Industry Organisation
In the year 2006, The Gem & Jewellery Export Promotion Council took over
the GII as a project which was also co-sponsored by the following leading
organizations: 127

 Bharat Diamond Bourse

 Diamond Exporters’ Association Ltd
 Gem & Jewellery Exporters’ Association
 Mumbai Diamond Merchants’ Association

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Recognition 128

 The first Research & Development Laboratory in the field of Gemstones in

India recognized by the Department of Science & Technology, Government
of India as SIRO. It is a National Research Center for Gemstones and
Diamonds.
 The International Jewellery Confederation, Switzerland (CIBJO) has
recognized the Gem Testing Laboratory of the GII.
 GII is also conducts and is Allied Teaching Centre (ATC) for the FGA
(London) examinations in India.
 The GII is a recognized centre by different universities for post graduate and
Ph.D studies in the field of gemstones and diamonds.

Achievements

1) Education129
 Started the first Diploma courses in Gemology and Diamond Grading in
India and trained thousands of students so far.
 Started the first correspondence course in Gemology in India.
 Conducts short term courses in Gem Identification, Diamond Grading.
 Developed one of the best Gemological libraries in India.
 Has been continuously training Customs officials for Gem Identification.
 GII is an Allied Teaching Centre (ATC) for the FGA (London) examinations
in India. Institute has been recognized center for the London based
Fellowship (FGA) examinations of the Gemological Association of Great
Britain in India since its inception.
 Students from all parts of the world are enrolled for the course at the
institute.
 Publishes “Indian Gemologist” the only Scientific Journal in Gemology in
India and GJEA Bulletin jointly with the Forum of Indian Gemologists and
Gem & Jewellery Exporters’ Association.

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 Conducts advanced training courses for the use of sophisticated instruments
such as Raman Spectroscope, FTIR, UV Visible Spectrophotometer,
EDXRF, LIBS, Diamond View etc.
 Conducts special courses for various Government departments1
 Organizes National and International seminars and workshops. Committed
as the Alma mater of Gemological studies in India.

2) Laboratory130
 The first Gem Testing Laboratory established in India for identification and
certification of Natural, Synthetics and all types of treatments done on
Gemstones.
 GII is offering regular gem testing services to the general public, Gem
Industry, Government departments like Customs, Police, Income Tax etc.
 GII issues Diamond Grading Certificates as per International Standards.
 Issues the grading report for Diamond Studded Jewellery.
 Issues Geographical Origin Certification for Ruby, Emerald & Sapphire.
 Issues certificates for origin of color identification in diamonds.
 Identification of Types of Diamonds.
 Identification of CVD and HPHT synthetic diamonds.
 Identification of HPHT treated diamonds.

3) Research131
 The first Research & Development Laboratory in the field of gemstones in
India recognized by the Department of Science & Technology, Government
of India as SIRO. It is National Research Center for Gemstones and
Diamonds.
 GII is one of the world class Laboratory which is fully equipped with the
most modern and sophisticated instruments.
 GII has a team of highly qualified Scientists and Gemologists in the
Country.

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2.8 Conclusion

The future of gems and jewellery industry is quite promising and favorable.
Increasingly buyers across the world are turning to India as their preferred
source for quality jewellery. The Gems and Jewellery Export Promotion
Council (GJEPC) and other institute as well as government is looking at
exploring new markets, such as Latin American countries. The industry also
plans and thinking to make India a trading center for cut and polished diamonds,
and is closely working with the Government of India in this respect. The long
term prospects and growth looks good with jewellery exports expected to touch
US $16 billion in 2010 according to industry estimates.

The global market for Gems and Jewellery today is over USD 100 billion with
jewellery manufacturing dominated by a few of countries, namely- Italy, China,
Thailand, USA and India. Although India is the global hub of cutting and
polishing diamonds, the trading hubs are located in the bye lanes of Antwerp
and Belgium where this trade is shared by Jews and Gujarati’s. The setting up
of the Diamond Bourse in Mumbai –amongst the largest bourses in the world,
at par with international standards is predictable to ensure India’s strategic shift
as a leading diamond trading market in Asia. The vision is to make India the
Global Jewellery Hub and world’s one stop destination for diamonds, gems,
gold and jewellery, in the years to come.

P a g e 83
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 Chapter Three

Profile of Gems and Jewellery

Industry in India

3.1 Introduction
3.2 History of development of Gems and Jewellery Industry in India
3.3 Gems and Jewellery industry in India
3.4 Gems and Jewellery industry in Maharashtra
3.5 Gems and Jewellery industry in Gujarat
3.6 Gems and Jewellery industry in Rajasthan
3.7 Comparative Study and Contribution of Maharashtra, Gujarat,
Rajasthan towards the Gems and Jewellery Industry
3.8 Working, process and patterns of the Industry
3.9 Conclusion

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