Gems, Jewelry and Diamonds
The history says that India is known for the birthplace for the one of the strongest metals i.e.Diamonds. Initially diamonds were only mined in India and were exported around the globe and were used as a medium of exchange for the commodities until the people knew its actual worth and how much materialist things that they can buy from it.
Currently, India produces 33000 carats of rough diamond and more than 800 million of rough and polished cut diamonds. Few of the Major hubs and producers of diamonds in India.Surat is known for largest market of manufacturing of diamonds in India.Mumbai is known for the wholesaler's market and where most of the trading takes place at BKC.Delhi is known for its silver jewelry and its manufacturing.
There are many other states like Jaipur, Kolkata, Trichur where we can find the precious metals, synthetic diamond and light weighted jewelry respectively around the states in India. Indian Gems, Jewelry and Diamond IndustryOver the years India has been the greatest manufacturing of cut and polished diamond.
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The sector contributes to around 16% of the export of the country and 93% around the globe. To add more to it Gems and Jewelry has become the second largest industry in earning foreign currency and Gujarat is one of the largest manufacturers of diamonds around the globe.
The Diamond Jewelry market has acquired the growth rate of 6% in India and the size of the industry is approximately Rs.6000 crore. Indian has been successful in achieving these goals in cutting and polishing business is all because of the competitive price and ready to work at a low margin.
Moreover, India has developed a specialized skill in polishing large and magnificent stones with fancy cuts which again increase the chances of success. Not only this this but most of the small-scale business have introduced high end machinery from which now they can get the best product from a raw or a polish diamond.
The Gold demand that the Indian market has rose from 9.13 % to 726.9 tones in 2017. As per the recent records it suggested that India has imported approximately $29 billion during the previous year. To Conclude, India has grown to become such a successful market that countries and companies are now insisting their diamonds to be manufactured in India.Industry Structure in India Gems ; JewelryDiamond Jewelry Precious StoneCut ;
Industrial Diamond: Under this there are all the natural and synthetic diamonds that are manufactured in the industry. It comprises of 25% of the total. Jewelry Diamond: All the assembled products such as the ready-made jewelry and gemstones are categorized under this section. It comprises of 15% of the total.3. Investment Diamond: it comprises of both the rough stones which are very expensive. It comprises of 60% of the total.
Market Overview
Every year 124 million carats of rough diamonds are being mined by Alrosa, BHP Billiton, De Beers, etc. The market value of these diamond is around $15 billion. Moreover, there has been a significant improvement in the growth by 31%.India has considered to be the largest exporter in gems and jewelry and to our knowledge the industry has played a very important role in Indian economy as it contributes a large part in the foreign reserves of the country.
Other then, India, USA, Russia, China, Belgium, Hong Kong are few of the world's biggest dealers in the diamonds.Export of Gems and Jewelry IndustryIf we see analysis the data we can see that, the net export of the industries gems and jewelry has shown rise of 7.06 % in the annual growth rate.
During the previous year the overall net exports were $35.51 billion and has reduced slightly in the current and will surely rise. Notes: Data from April-February 2018, CAGR – Compound Annual Growth Rate till FY 2017.Source: GJEPC, Media sources.Import of Gems and JewelryIndia is also of the largest importer of gems and jewelry as well.
If we see in the figures the India's total rose from $11.63 billion to $42.72 billion from the years 2005 to 2012 respectively and since then it has shown a gradual set back during the next year. Again, the market has also gained strength after the fall from $42.72 million to $24 million and now covering back by $28.78 million during the previous years.
Moreover, it will provide vocational training to the engaged peoples who are getting training in it. The Make in India initiative will boost the exports and it will provide critical regulatory framework for the proposal Special Notified Zone(SNZs). However, it will also benefit the small-scale businesses (SMEs) that are involved with the industry.
The government has proposed to cut down the tax to 25% for the micro and small-scale enterprises which was announced in the recent Union Budget. The government has permitted 100% FDI. After the booming of the ecommerce, many companies have started selling their jewelry online.
Not only this but, many companies have tied up with the Amazon to sell their product online at discount. Companies also have provided buy-back option to the customer if they dislike the product but I think there are still terms and conditions to be stringent so that it will ease the procedure.Few of the Key Players in the Indian market are Tanishq, Malabar Gold ; Diamond, Gitanjali, Nirav Modi, PCJ, TBZ, Kalyan, Venus Jewels.
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Gems, Jewelry and Diamonds. (2018, Apr 25). Retrieved from https://phdessay.com/gems-jewelry-and-diamonds/
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