GEMS & JEWELLERY INDUSTRY:

IN THE FOREFRONT OF GLOBALISATION:

 

In the gems and jewellery industry, the cottage-based diamonds processing and jewellery making units compete with modern factories using state-of-the-art machinery and computerized operations. Modernisation and technology absorption through capital goods imports have given a cutting edge to both diamond processing and jewellery manufacture in India. As a step in operational integration, more and more diamond manufacturers have set up jewellery manufacturing units as well, creating an invaluable synergy in the gems and jewellery industry.

 

The Indian gems and jewellery units have set up a worldwide network of offices in Antwerp, New York, London, Tokyo, Hong Kong, Singapore, etc. One can find the offices of Indian gems and jewellery units in every hotspot on the diamond industry map of Europe, Japan, USA, Israel, South East Asia and the Middle East.

 

The phenomenal growth in gems and jewellery exports is a record for among the large Indian export sectors. In fact, the gems and jewellery industry presents itself as a perfect case study for discussing how to build competitiveness of Indian industries. The diamantaires and jewellery makers and their devoted and skilled artisans have shown that even an unorganized industry can achieve international competitiveness. The Indian gems and jewellery industry was the first one to absorb and assimilate the true spirit of globalization by integrating itself with the world gems and jewellery industry.

 

 

GEOGRAPHIC SPREAD OF GEMS & JEWELLERY INDUSTRY

Gold jewellery making is spread throughout the country with every village having a family of goldsmiths. The diamond processing industry has spread from the State of Gujarat, which accounts for almost 80% of the diamonds processed in India, to other States. Surat, Ahemedabad and Bhavnagar are the diamond centres in Gujarat. Many diamond processing units have been set up in Mumbai in Maharashtra. There are also diamond processing units in Trichur in Kerala, Coimbatore in Tamil Nadu, Jaipur in Rajasthan and also in Goa. Mumbai continues to be the main trading centre for diamond exports. Ninety-three per cent of diamond exports are dispatched through Mumbai airport (see Table - 2).

 

SOCIO-ECONOMIC CONTRIBUTIONS OF GEMS & JEWELLERY INDUSTRY:

The Indian gems and jewellery industry has proved its mettle in international competitiveness. Simultaneously, it has also made significant socio-economic contributions:

 

i. Employment generation with low investment: The investment required for creating employment in the diamond processing and jewellery-making units is quite low. Employment generation in other industries call for heavy investments.

ii. Hard currency foreign exchange earnings: The countries to which India exports gems and jewellery are among the hard currency areas. The industry contributes continuously to the country's foreign exchange reserves.

iii. Pollution-free industry: Diamond processing and jewellery manufacture do not pollute the environment, neither air nor water.

iv. Environmental friendly industry: Being an import-based industry, it does not deplete natural resources and also leaves the flora and fauna in tact.

iv. Assists in urban decongestion: Through decentralized location, the gems and jewellery industry helps in the removal of unemployment in the rural sector, prevention of migration to cities and the avoidance of slums in the urban areas.

v. Low Power Consumption: The gems and jewellery manufacturing processes do not aggravate the country's energy problems.

vi. No burden on the country's transport infrastructure: The raw materials as also the finished products are of high-value but of low weight. They do not put any burden on the country's road, rail, sea or air transport.

 

Table 3A: Indias Exports of Gems & Jewellery during the last five years

(Value US $ in Million)

 

 

Gems and Jewellery Items

 

 

 

 

 

% Growth / decline over preceding year

 

 

2002-03

2003-04

2004-05

2005-06

2006-07(P)

2003-04

2004-05

2005-06

2006-07(P)

 

 

 

 

 

 

 

 

 

 

 

1

Cut & Polished Diamonds

7110.57

8627.48

11181.56

11856.77

10909.82

21.33

29.60

6.04

-7.99

2

Coloured Gem Stones

192.07

178.48

192.75

233.53

246.56

-7.08

8.00

21.16

5.58

3

Gold Jewellery

1513.08

2680.92

3783.58

3863.23

5209.32

77.18

41.13

2.11

34.84

4

Others*

112.90

132.82

161.94

187.97

190.33

17.64

21.93

16.07

1.26

 

Total

8928.62

11619.70

15319.83

16141.50

16556.03

30.14

31.84

5.36

2.57

 

 

 

 

 

 

 

 

 

 

 

5

Rough Diamonds

240.88

535.84

357.86

566.89

564.82

122.45

-33.22

58.41

-0.37

 

Net Exports

9169.50

12155.54

15677.69

16708.39

17120.85

32.56

28.98

6.57

2.47

 

Note: Others include Pearls, Non-Gold Jwellery, Synthetic Stones, Costume Fashion Jewellery and Sales to Tourists

 

ACKNOWLEDGEMENTS:

FINANCEMAN ASSOCIATES acknowledges the use of various printed and electronic media for compiling the content, ideas and statistics on the gems and jewellery industry presented on this web page. We at FINANCEMAN ASSOCIATES are thankful to the industry leaders, their spokesmen, commentators in the media and experts in diamonds processing and jewellery manufacture and, specifically the Gem & Jewellery Export Promotion Council, Mumbai, for the use of published text and statistics that are in the public domain. The place of jurisdiction concerning all issues presented on this Web Page by FINANCEMAN ASSOCIATES shall be Mumbai, Maharashtra, India.

Copy Right 2007 FINANCEMAN ASSOCIATES

 

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