The Gems and Jewellery sector plays a significant role in the Indian economy, contributing around 7 per cent of the country’s GDP and 15 per cent to India’s total merchandise exports. It also employs over 4.64 million workers and is expected to employ 8.23 million by 2022. One of the fastest growing sectors, it is extremely export oriented and labour intensive.
India is one of the largest exporters of gems and jewellery and the industry is considered to play a vital role in the Indian economy as it contributes a major chunk to the total foreign reserves of the country.
The Government of India is aiming at US$ 80 billion of jewellery exports in the next five years, up from the present level of US$ 40 billion. India's gems and jewellery exports stood at US$ 25.11 billion in 2019. During the same period, exports of cut and polished diamonds stood at US$ 16.32 billion, thereby contributing about 73.42 per cent of the total gems and jewellery exports in value terms.
Exports of gold coins and medallions stood at US$ 814.33 million and silver jewellery exports stood at US$ 1.22 billion in FY20P (till Jan 2020).
India’s gems and jewellery sector is one of the largest in the world contributing 29 per cent to the global jewellery consumption. The sector is home to more than 300,000 gems and jewellery players. Its market size will grow by US$ 103.06 billion during 2019-2023. India’s demand for gold reached 760.4 tonnes in 2018 and 496.11 tonnes during first nine months of 2019.
The cumulative Foreign Direct Investment (FDI) inflows in diamond and gold ornaments in the period April 2000 – December 2019 were US$ 1.17 billion, according to Department for Promotion of Industry and Internal Trade (DPIIT).