Gems and Jewelry Industry: Indian Scenario in 2024
Welcome Reader and Entrepreneurs in the Blog Post of ‘Gems and Jewelry Industry: Indian Scenario in 2024’. It’s wonderful time to be aware of gemstone jewelry industry in addition of India’s glimmering jewelry and gems sector. In this Blog post we are going to explore Gemstones Jewelry business, Importance, Exports, Retail Business scenario, market and India’s Role in Industry, Structure of Industry’ raw material of Gems and Jewelry availability, Indian Government Initiatives and its position on the Global Front as well as Impact of AI on industry Gem and Jewelry.
Importance of the sector gems and jewelry
It is said that gems and jewelry are a part of many Indian cultures and traditions. Gems and jewelry have long been from long time aesthetic value as well as their potential as investments. People believe that gems and jewelry can improve your life standard. Today, there may be a boom in the gemstone and jewelry industry.
Market of Gems and Jewelry Industry
We all know the sourcing, processing, manufacturing, and selling of precious metals and gemstones like Gold, Silver, Diamond, Diamond, Ruby, and Sapphire are all part of the gem and jewelry business. Buyer preferences, varieties, unit values, properties, applications, etc. are some of the factors that affect the demand for various types of gems and jewelry. It is cleat this industry is highly labor-intensive and export-oriented. With a contribution of roughly 7% to the GDP and 15% to all of India’s exports of goods, the gems and jewelry industry is important to the Indian economy. The market for gemstones and jewelry are of gold, diamond in gold, gemstones, diamond, silver, and other gems. Gold has always been fascinated due to culture and is often thought of as a financial asset of family. Despite platinum and diamonds being the top fashion symbols in recent years and you all know gold still controls this market and accounts for the highest demand. Now day’s stones have also gained popularity among a different group of spiritualists, though this area is still in the early stages of development.
India’s Role in Gems and Jewelry Industry
Jewelry is a status symbol in India. As per capita income has increased so jewelry sales also increased. Since the Indus Valley Civilization, India has had a fascination with gems and jewelry. Ever since civilization first appeared on Indian soil, gems and jewelry have played a significant role in Indian society and the economy. In terms of the total number of luxury goods sold in the nation, jewelry makes up about 50%.
As one of the first nations to begin producing fine jewelry from metals and minerals was India, which is known for its handcrafted jewelry. Large-scale employment, foreign exchange earnings from exports and value addition are all produced by the gem and jewelry industry in India. India is thought to be the center of the world’s jewelry industry due to its affordable labor costs and accessibility to highly skilled workers. India is known for its diversity and craftsmanship.
Now days it is said to be that the main center for diamond cutting and polishing is in India. The third-largest market for polished diamonds is India. 75% of the polished diamonds in the world are exported from India. The Indian gems and jewelry industry has been a significant contributor to the nation’s foreign exchange earnings. After the United States and Japan, India ranks third in terms of polished diamond consumption. India accounts for nearly 50% of the global market. India’s cut and polished diamonds, colored gemstones, gold jewelry, pearls, non-gold jewelry, and fashion jewelry are worldwide recognize today . India’s experience with organized jewelry has been gradual and steady. It has taken a lot of work to carve a niche in a country where traditional family jewelers have long held to instill exclusivity. 10% of India’s entire jewelry market, worth Rs. 3437.20 billion, is made up of organized retailers.
Setup of Gems and Jewelry Industry in India
Understand the Indian Gems, Jewelry, and Industry Structure. India as country’s rapid urbanization and expanding middle class, particularly as the market for diamond jewelry has expanded.
Mumbai, which receives the majority of India’s imports of gold and rough diamonds, is the center of the country’s jewelry industry. In Maharashtra, Mumbai has also been home to numerous diamond processing facilities. However, there are quite a few contemporary, semi-automatic factories and laser cutting facilities in Mumbai, the majority of which are situated in the special economic zone. However, the State of Gujarat, which accounts for nearly 85% of the diamonds processed in India as compared to other states, has led to the expansion of the diamond processing industry.
Gujarat’s major diamond centers are Surat, Bhavnagar, and Ahmadabad. Additionally, Trichur in Kerala, Coimbatore in Tamil Nadu, Jaipur in Rajasthan, and Goa all have diamond processing facilities. Indian consumerism has reached new heights.
Raw material of Gems and Jewelry availability in India
Let’s examine the availability of raw materials. In this sector, imports of raw materials for gems and jewelry hold a special place. 90% of India’s raw materials are imported. The raw material is transformed into marketable products for the global market.The National Mining Development Corporation only mines diamonds in the Indian state of Madhya Pradesh, specifically at Panna. India has sizable gold, diamond, ruby, and other gem stone reserves.
Maharashtra, Madhya Pradesh, Orissa, Chattisgarh, Bihar, and Andhra Pradesh are important states that have gem stone reserves and mining potential. Orissa State have potential of ruby as well as 20 different kinds of different gemstones like Rhodolite garnet, Aquamarine and others. Gold is found in Andhra Pradesh.
India’s Position on the Global Front of Gems and Jewelry
The gems and jewelry industry has become well-known on the basis of its skilled artisans, methods for cutting and polishing fine diamonds and precious stones, and its cost-effectiveness.
India, USA, China, Japan, the UK, the Middle East, Turkey, and Italy are top eight global markets. With its gold jewelry, cut and polished diamonds, pearls, colored gemstones, non-gold jewelry, and fashion jewelry, India supplies nearly 50% of the global market. In terms of value, pieces, and carats, India’s gem and jewelry sector accounts for nearly 55% of the net global exports of cut and polished diamonds. China, Japan and India are the biggest consumers of gold worldwide. Along with china and India big player major gold consumers in Asia-Pacific region are Vietnam and Thailand.
Gems and Jewelry Exports from India
The world’s gem and jewelry industry is about to undergo a significant transformation. Gems and jewelry are primarily exported from India to the UAE (32% of the total), Hong Kong, the USA, Thailand, the United Kingdom, Africa, Israel, Belgium, Switzerland, Russia, Singapore, Latin America, and China. Individual exporters’ disparate efforts have been combined into a potent force propelling the nation’s export-led growth.
Retail Business scenario of Gems and Jewelry in India
Scenario for a retail business you can see the growth of major retailers and brands will be a major factor in the Gems and Jewelry sector in the upcoming years. The organized market is being led by well-known brands, which are also creating growth opportunities. Additionally, the industry is likely to benefit from the easing of import restrictions on gold. The positive developments in the industry are anticipated to significantly support the demand for jewelry. The Indian gems and jewelry retail industry has seen a large influx of players in recent years due to a booming market. PC Jewellers, PNG Jewellers, Popley and Sons, Swarovski, Damas Jewellery, Reliance Retail, and Joy Alukkas are the big player in Retails business of Gem and Jewelry. However, this industry is still not organized; family jewelers account for 80% of the jewelry market.
Challenges in the industry Gems and Jewelry in India
There are challenges facing this sector, many issues have an impact on consumer and investment demand. Players of this industry serves for the jewelry consumption, demand face challenges in talent and skill development, research and technology adoption, and limited financing options.
The investment side of the market is also affected by rising investment demand and a lack of supply infrastructure.
Regulations and restrictions as well as a high reliance on imports have an impact on the market’s investment and consumption demand.
There is international competition from nations such as China, Hong Kong, and Vietnam.
Transportation and customs clearance challenges exist for product development.
India with creative R&D solutions, the divide between high-end machines and unskilled labor can be narrowed the industry as well.
Since a large portion of the raw diamond material is first exported to China for use in jewelry manufacturing or wholesale trading.
The US-China trade war had an impact on India’s exports of diamonds. These goods travel from China to the United States. India’s gem and jewelry industry suffered as a result of the US reducing its purchases of certain Chinese goods and raising tariffs.
Indian Government Initiatives for the industry Gems and Jewelry
Now day’s industry receiving strong support from governmental regulations. The government constructed the biggest jewelry park in India in Ghansoli, Navi-Mumbai. Through the Gold Monetization Scheme, peoples increase of trusts in mutual funds so that they can deposit gold with banks and receive interest in return. The sector has been prioritized by the Indian government for export promotion. Government introduce the automatic route, that’s how the Indian government currently permits 100% Foreign Direct Investment (FDI) in the sector. The Government of India has designated the gems and jewelry sector as a focus area for export promotion based on its potential for growth and value addition. The government has recently implemented a number of initiatives to encourage investments and to modernize technology and skills in order to market with Brand Make in India abroad.The Ministry of Commerce developing a medium term exports strategy for various sectors, including gems and jewelry business potential by promoting the export of Indian “hallmark” jewelry for buying rough diamonds directly from mining nations. Promotion of Indian diamonds and jewelry through direct contact with market retailers, advertising, publicity, and participation in international trade shows. Market research conducted by industry experts to find new markets.
Impact of AI on industry Gems and Jewelry
It is time for industry to Making Use of Technology to Create Value. AI’s effects on industry methods for grading diamonds are being rapidly altered by machine learning. The diamond industry cannot be left unaffected as AI permeates every aspect of contemporary life. With technology like 3D printing metal printing can be possible without need of molds and other equipment. Transparency and trust will no longer be problems thanks to technology like Block Chain. Technology and procedures created by innovators have freed design new creations to respond to market demands.
Conclusion
With just a few words to wrap up, India’s Role on the International Scene is increase now. Frequently, jewelry is a work of art but it is said that it only becomes worthwhile when you add emotions to it.
It time for the jewelry designers in India that have to turned to entrepreneurship to take advantage of the opportunities in the industry after noticing the rising demand for gemstone jewelry because trends are erratic. Women invest heavily in fashion jewelry, which is quickly becoming the top choice for daily wear in the rapidly expanding fashion industry, in addition to purchasing gold. It has become mandatory for industry entrepreneurs to keep evolving in a world where every day brings something fresh and new. Bring your designs of Gems and Jewelry to life by exercising greater imagination and creativity. Keep Reading! Thank You.
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