Amidst the booming retail market, the gems and jewelry industry is undergoing a gradual transformation from a "storehouse of value" to a fashion accessory bazaar.
In the gems and jewelry industry, gold and diamond are two major segments. While gold jewelry is meant for domestic consumption, a major chunk of rough and uncut diamonds are processed and diamond jewelry is exported. Though India is a global leader in this area, exports are dependent entirely on the import of rough diamonds (imports around $8 bn of rough diamonds), gold and other gemstones. The sector has got its importance in the economy, and particularly the diamond segment accounts for 80% of total exports of the sector and is providing employment for close to 10 lakh artisans and workers, both directly and indirectly. The gold jewelry segment accounts for 15% of total exports. Being one of the significant foreign exchange earners, the industry is contributing significantly to the economy. And being the largest consumer of gold in the world, the countryestimated to hold nearly 14,000 tons of goldis accounting for around 9% of the global cumulative mine production.
According to a survey conducted by KPMG, the global gems and jewelry will grow up to US$185 bn by 2010 and $230 bn by 2015. It says India, along with China, will play a dominant role and as a market equivalent to the US. In fact, the country is emerging as one of the biggest markets for premium products. The gems and jewelry sector is very popular among the people. We can judge its popularity from the fact that over one million are employed in this industry and it is still growing at the rate of approximately 15% every year. |
