The overall gems and jewellery exports fell 8.14 percent year-on-year in December to Rs 18,281.49 crore ($2,195.23 million), as per data released by the Gem Jewellery Export Promotion Council (GJEPC). The overall exports of cut and polished diamonds dipped by 31.42 percent to Rs 7,182.53 crores ($862.48 million) in December compared to Rs 10,472.93 crore ($1,270.36 million) for the same period of the previous year.
As the seventh largest exporter, which contributes to 3.5% of exports, India’s gems and jewellery market is integral to the growth of the economy. With Budget 2025 round the corner, industry experts seek initiatives that can uplift the sector and position India as a global trading hub for diamonds and coloured gemstones.
Vipul Shah, Chairman, Gem and Jewellery Export Promotion Council (GJEPC) says that the industry is currently facing challenges in the aftermath of geopolitical scenarios and issues related to rough diamond sourcing. “Against the backdrop of the macroeconomic scenario, I urge the government to take measures to revive exports in this sector. GJEPC recommends support for co-funding global diamond promotion campaigns, the inclusion of jewellery parks in the harmonised infrastructure list and an Infrastructure Support Fund to develop a gem bourse in Jaipur. Advancing a platinum jewellery ecosystem and expanding IJEX trading centres will further strengthen India’s global leadership while creating substantial employment opportunities,” he highlights.
Shah adds that GJEPC has launched a global campaign to promote natural diamonds in collaboration with leading international diamond mining companies and countries. “GJEPC, through crowdfunding from its members, has contributed Rs 15 crore towards this campaign. However, in light of the ongoing challenges, government support can be hugely beneficial. The council seeks approval of a matching grant for the generic promotion of diamonds in international markets to protect jobs, safeguard exports and preserve millions of livelihoods while ensuring India’s global leadership in diamond exports,” he states.
Besides such measures, leading industry players highlight how India’s definitive edge in coloured gemstone manufacturing must be leveraged. “The handcrafted gemstone jewellery making skill and craftsmanship of Indian artisans is unique and bespoke. There is a shift of focus from neighbouring countries towards the Indian diamond market, with the demand supply tilt favouring India. India needs world class infrastructure, education, empowerment, and on-ground execution to elevate the industry further,” Paul Rowley, Executive Vice President, Diamond Trading – De Beers Group says. Affirming his views, Shah says that the industry requires robust infrastructure development to achieve the goal of ‘Viksit Bharat.’ “The Council, with funding from the industry, is developing the world’s largest jewellery park in Mumbai, and similar parks are also emerging in Meerut, Bangalore, and other cities. We propose the inclusion of Jewellery Park in the harmonized list of infrastructure to support the sector’s growth,” he adds. In order to bolster the industry’s competitiveness, experts also call out reducing import duty on cut and polished diamonds from 5% to 2.5%. “To further enhance competitiveness relative to China and a few other countries, the government might consider reducing such import duties. Some measures to support the diamond sector were already announced in the Union Budget 2024, including exempting it from the equalization levy and introducing the Safe Harbour Rule on sale of rough diamonds at Special Notified Zones,” Anand Ramanathan, Partner, consumer products and retail sector leader, Deloitte India says.
Remaining competitive in the international market for the gem and jewellery sector entails policy interventions and concerted efforts that can help it inch closer to this goal. “To counter competition from China, India should invest in advanced technology for gemstone processing and implement skill development programs to elevate craftsmanship and productivity,” Ramanathan adds.
