INDUSTRY STUDY REPORT

GEMS AND JEWLLERY INDUSTRY

PROGRESS REPORT –I PROJECT REPORT

PREPARED BY
NEVIL
MANGROLIA
KEVIN SHELADIYA
(BBA SEMESTER – III)

ENROLLMENT
NUMBER
20FOMBA11524
20FOMBA11540

FOR THE SUBMISSION OF

CIE – I

GUIDED BY
PROF. DHARA BHALODIA

SUBMITTED TO
FACULTY OF MANAGEMENT
RK UNIVERSITY
RAJKOT
MONTH AND
DATE
11-8-2021
 Preface
This report for the year ended 31 March 2009
has been prepared for submission to the
President of India under Article 151(1) of the
Constitution of India. Audit of Revenue
Receipts – Indirect Taxes of the Union
Government is conducted under the Section 16
of the Comptroller and Auditor General of
India (Duties, Powers and Conditions of
Service) Act, 1971. The observations included in
this report have been selected from the findings
of test audit, during the year 2008-09, while
conducting performance audit of custom duties
from ‘Natural or cultured pearls, precious or
semi-precious stones, precious metals, metals
clad with precious metal and articles thereof,
imitation jewellery, coin

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 Acknowledgement

Preparing a project of this nature is

an arduous task and I was fortunate
enough to get support from a large
number of persons. Iwish to express
my deep sense of gratitude to all
those who generously helped in
successful completion of this report
by sharing their invaluable time and
knowledge. It is my proud and
previledge to express my deep
regards to Respected Mrs. Anjali
Namdeo Thakur FeranSingh Art
and Commerce Collage Shahpur for
allowing me to undertake this
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 project. I feel extremely exhilarated
to have completed this project under
the able and inspiring guidance of
Mrs. Anjali Namdeo He rendered
me all possible help and guidence
while reviewing the manuscript in
finalising the report. I also extend
my deep regards to my teachers,
family members, friends and all
those whose encouragement has
infused courage in me to complete
the work successfully.

SR. NO. PARTICULARS PAGE NO.

Chapter
1 INTRODUCTION 6
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GROWTH DRIVERS 7
CONTRIBUTION TO INDIAN ECONOMY 8&9
MARKET SIZE AND INVESTMENT 10
GOVERNMENT INITIATIVE TO BOOST THE
INDUSTRY 11
MAJOR PLAYERS IN THE INDUSTRY 12
Annexure
Bibliography / References

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 INTRODUCTION

As of January 2021, 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.

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 GROWTH AND DRIVERS

The Global Gems and Jewelry Market report covers

drivers, restraints, challenges, and threats to understand
the overall scope of the market in a detailed concise
manner. The report inculcates an influential view on the
volume and market size.

The research report on the Global “Gems and Jewelry

Market”2021 elaborates the key market opportunities,
CAGR, yearly growth till 2024 to review the market. The
market study is segmented by key regions that are
accelerating the marketization to help the readers to
understand the qualitative and quantitative aspects of the
global Gems and Jewelry market. The study is a perfect

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 amalgamation of qualitative and quantitative information
covering the competition landscape, company profiles,
financials, technological developments, and investments.
Various parameters have been collected through
validating research techniques with the help of primary
data and secondary sources while estimating the market
size

CONTIBUTION TO INDIAN ECONOMY

India’s gems and jewellery export sector—which is one of

the largest in the world—contributed ~27% to the global
jewellery consumption in 2019. Market size of the global
gems and jewellery sector is likely to expand to US$
103.06 billion between 2019 and 2023. India’s gems

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and jewellery exports are expected to reach US$ 100
billion by 2025.
In FY21*, exports of gems & jewellery stood at US$
21.89 billion. In February 2021, exports of gems &
jewellery stood at US$ 2.64 billion.
In September 2020, the US was the largest country (at
44%) to import gems and jewellery (US$ 938.54 million)
from India, followed by Hong Kong (~33%) and the UAE
(~13%).
In FY21*, cut and polished diamonds accounted for
~65% of the total gems and jewellery exports, with India
exporting 75% of the world’s polished diamonds.
According to Gem and Jewellery Export Promotion
Council, between April 2020 and December 2020, gold
bars accounted for ~6.8% (US$ 678.77 million) and
gold jewellery at ~1.8% (US$ 181.49 million) of the total
gems and jewellery imports in India. As per the World
Gold Council (WGC), India’s gold demand stood at
446.4 tonnes in 2020.
The Government has permitted 100% FDI in the sector
under the automatic route, wherein the foreign investor or

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the Indian company do not require any prior approval
from the Reserve Bank or Government of India. The
Government has made hallmarking mandatory for gold
jewellery and artefacts and a period of one year is
provided for its implementation.
As per Union Budget 2021, the Gem and Jewellery
Export Promotion Council has proposed a reduction in
import duty on cut and polished diamonds to 2.5%, from
the existing 7.5%, in order to double exports of gems &
jewellery to US$ 70 billion by 2025.
Cumulative FDI inflows in diamond and gold ornaments in
India stood at US$ 1,190.47 million between April 2000
and December 2020 according to Department for
Promotion of Industry and Internal Trade (DPIIT).
*between April 2020 and February 2021

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 MARKET SIZE AND INVESTMENT

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.
In April 2021, India exported gems & jewellery worth US$
3.37 billion compared with US$ 36.11 million in April
2020.
In September 2020, the US was the largest country (at
44%) to import gems and jewellery (US$ 938.54 million)

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from India, followed by Hong Kong (~33%) and the UAE
(~13%).
In FY21, imports of gems & jewellery stood at US$ 16.49
billion. Imports of gold jewellery recorded US$ 262.25
million from April 2020 to February 2021. 

Cumulative FDI inflows in diamond and gold ornaments in

India stood at US$ 1,190.47 million between April 2000
and December 2020 according to Department for
Promotion of Industry and Internal Trade (DPIIT).

GOVERNMENT INITIATIVE TO BOOST THE INDUSTRY

 The government has reduced import duty for Gold &

Silver (from 12.5% to 7.5%) and Platinum &
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 Pallidum (from 12.5% to 10%) to bring down the
prices of precious metals in the local market.
 Indian Government made hallmarking mandatory for
Gold Jewellery and Artefacts. A period of one year is
provided for implementation i.e. till January 2021.
o In December 2020, All India Gem and Jewellery
Domestic Council (GJC) welcomed the decision
to make hallmarking compulsory from June 2021
in a phased manner; urged the government to
examine the key concerns of the industry for
smooth implementation of the initiative.
 In December 2020, the Finance Ministry notified that
the amendment under Prevention of Money
Laundering Act (PMLA), notifying dealers in precious
metals and stones, will maintain records of cash
transactions worth Rs. 10 lakh (US$ 13.61 thousand)
or more cumulatively with a single customer.

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 MAJOR PLAYERS IN THE INDUSTRIES

Hong Kong accounted for the highest value in the export

of precious gems and jewelry from India in fiscal year
2020 at over 675 billion Indian rupees. United States
and United Arab Emirates ranked second and third
respectively. Pearls, precious and semi-precious stones
made up nearly eight percent of exports from India, while
precious metal jewelry contributed nearly four percent in
financial year 2019.

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THANK
YOU

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