Gems & jewellery grew 71% in April-December 2020

Exports of gems & jewellery surge by 71 per cent during the first three quarters of the current fiscal over April-December 2020.

With $28.9-billion worth of gems & jewellery exports already achieved during the first three quarters of the current FY, it has already surpassed $26.02-billion exports registered during the entire 2020-21, according to an official press release. It is likely to better the previous high of $35.89 billion scaled during the last fiscal.

The gems & jewellery sector accounted for 9.6 per cent share of India’s entire exports basket during April-Dec 2021, garnering the second largest commodity share. The sector contributes about 7 per cent of India’s total GDP and employs the skilled and semi-skilled workforce of more than 50 lakh workers.

More than 450 organized jewellery manufacturers, importers and exporters are based in Surat, Gujarat, making it the jewellery manufacturing hub of the world.

It may be noted that the government has declared the gems & jewellery sector as a focus area for export promotion. It has taken various measures to promote investment for growth of the sector: the revamped Gold Monetization Scheme, reduction in import duty of gold, and mandatory hallmarking.

Various government initiatives include: common production/processing centres, design centers, testing facilities including plug & play facilities where assistance of 90 per centis being given by the government. Then there are marketing hubs, exhibition centres by associations, which receive government assistance of up to 80 per cent of the project cost.

The government has laid out four points to make gems & jewellery a pioneer industry in the world. First, focus on design (creation of patented designs) in order to increase value add of our products and make our manufacturing more profitable.

Second, diversification of export products, which includes emphasis on products like pearls, silver, platinum, synthetic stones, artificial diamonds, fashion jewellery, and non-gold jewellery.

Third, collaboration with other nations for cost-effective methods to enhance production of fusion jewellery. And, finally, promotion of lab-grown diamonds which are environment friendly & affordable. They will contribute to India’s export as well as generate employment, said the press release.