“A STUDY ON INDIAN EXPORTS OF GEMS AND JEWELLERIES”

A PROJECT REPORT SUBMITTED TO VELS INSTITUTE OF SCIENCE AND

TECHNOLOGY AND ADVANCED STUDIES
(VISTAS)
(Deemed to Be University Este. U/S 3 of the UGC Act, 1956) In
Partial fulfilment of the requirement
For The Award of The Degree Of
BACHELOR OF COMMERCE (COMPUTER APPLICATION)

Submitted by,
Sriram. G
(Reg No. 21103156)

Under the guidance of,

Dr.V.CHITRA, M. Com, M.B.A, B.Ed, M.Phil, NET, Ph.D,
Assistant Professor & Research Supervisor,
Department of Commerce.

MAY-2024
 DEPARTMENT OF COMMERCE (COMPUTER APPLICATION)

BONAFIDE

This is to certify that the project report titled “STUDY ON INDIAN EXPORTS OF GEMS
AND JEWELLERIES” is a Bonafide record of the work carried out and submitted by
SRIRAM. G (21103156) to the Department of Commerce, under VELS INSTITUTE OF
SCIENCE TECHNOLOGY AND ADVANCED STUDIES (VISTAS) in partial fulfilment
of requirements for the award of the degree of Bachelor of Commerce (COMPUTER
APPLICATION) for the year 2021-2024 under the guidance of CHITRA, Department of
Commerce (CA), VISTAS, Pallavaram-117.

Dr.V.CHITRA, Dr. CHANDRAN,

M. Com, M.B.A, B.Ed, M.Phil, NET, Ph.D, Head of Dept. of Commerce,
Associate Professor & Research Supervisor, (COMPUTER APPLICATION)

Department of Commerce.

INTERNAL EXAMINER EXTERNAL EXAMINER

 DECLARATION

SRIRAM. G ( Reg. No :21103156 ) a student of B.COM (COMPUTER APPLICATION),

Department of Commerce VELS INSTITUTE OF SCIENCE TECHNOLOGY AND
ADVANCED STUDIES, hereby, declare that the Project work titled “STUDY ON INDIAN
EXPORTS OF GEMS AND JEWELLERIES” submitted to the VELS INSTITUTE OF
SCIENCE TECHNOLOGY AND ADVANCED STUDIES in partial fulfilment of the
requirement for the award the degree of BACHELOR OF COMMERCE (COMPUTER
APPLICATION) is a Bonafide research project work carried out by me under the guidance
of Dr. CHITRA.. Professor, Department of Commerce (CA), No Part of the research
project has been submitted for any other degree or diploma.

PLACE: PALLAVARAM

DATE: 14/10/2023 SRIRAM.G

 ACKNOWLEDGEMENT

With God’s grace and Mercy I have been able to prepare a report

I owe my sincere thanks to Shri. Dr. ISHARI K. GANESH, CHANCELLOR, Vels

Institute of Science Technology and Advanced Studies who has imparted me sufficient
support and confidence to complete this project.

I owe my sincere thanks to Thiru. Dr. S. SRIMAN NARAYANAN, Vice Chancellor,

Thiru Dr. P. SARAVANAN, Registrar, and Thiru Dr. UDHYA KUMAR. A, Controller of
Examinations of Vels Institute of Science Technology and Advanced Studies, Pallavaram
Chennai 117.

I extend my gratitude towards Dr. CHANDRAN, Head of the Department,

(COMPUTER APPLICATION) Commerce, for the encouragement and support to complete
the project successfully.

I express my heartfelt thanks to of Dr. CHITRA. Professor, Department of

Commerce (CA), Research Supervisor for guiding the project in a successful manner.

I also thank all the faculty of commerce department, VELS INSTITUTE OF SCIENCE
TECHNOLOGY AND ADVANCED STUDIES for their support on several occasions
during my research work through their valuable suggestions.

SRIRAM.G
 CHAPTER-1
INTRODUCTION
 INTRODUCTION

As we all know an export is a good that is produced domestically and sold to

consumers overseas. The main reason a country exports its production to other
countries is to increase its revenue and support the Gross Domestic Product
(GDP). Exports and Imports aid in development of a country’s economy and
implies that a nation is keen in enhancement of all the individual lives. India has
been carrying out trade with the outside world for a long time. In India, a broad
consensus emerged over the last decade about the imperative need to achieve
and maintain a seven per cent plus annual growth rate of GDP, and the main
source to maintain this growth rate are exports. However, the socially accepted
objective of rapid economic growth that has been in the national economic
agenda since 1991 has not been accepted by a wide section of people including
political leaders, policy-makers and even economists. This report is to study the
exports made by India in order to attain their objective of stability and rapid
economic growth.

GEMS AND JEWELLERY:

India’s gems and jewelleries attracted a lot of people right from the British rule.
India’s fascination with jewellery dates back 5,000 years to the Indus Valley. At
the time, the country was the largest producer and exporter of pearls in the world.
Our country was the home to diamonds, semi-precious stones and gold. It is an
undeniable fact that for the last 2,000 years, India was the sole supplier of
gemstones across the world. These stones and jewellery were considered as the
power, success and reputation and for the Indian women, they were and still are
considered essential to provide social and economic security, the value of which
can never be undermined. The country started exporting jewelleries during the
colonial period. For its jewelleries India had a global market. The excellent
quality of craftmanship was highly regarded and had a worldwide reputation.
However, the British transferred most of these riches to the United Kingdom.
Today, the Gems and Jewellery industry has become one of the largest
businesses in India playing an important role in the Indian economy. If we go
through the statistical data, it contributes 7% of the country’s GDP and 15.71% of
India’s total merchandise exports which itself is one of the fastest growing sectors.
As a result, the industry brings in a huge amount of foreign exchange and provides
employment to over 4.64 million workers in both organized and unorganized
sectors.
Historical Significance:
 India has a long-standing tradition of jewellery making, dating back
thousands of years.
 Historically, jewellery has been an integral part of Indian culture, worn as
adornments in ceremonies, festivals, and daily life.

Industry Size and Scope:

 The Indian gems and jewellery industry is one of the largest in the world,
contributing significantly to the country's GDP and exports.
 It encompasses a wide range of products including gold, diamonds,
precious and semi-precious stones, silver jewellery, and costume
jewellery.

INDIA’S EXPORTS IN THE BRITISH PERIOD:

A lot of exports were made by India in the British period. India’s main exports
partners were England, West Asia, Arab Countries and Europe. The main
exports were Spices, Indigo, Calicoes, Silks, Gems and Jewellery etc. India
exported manufactured goods. The volume of trade was limited compared to
modern times. Sea route was mainly used for foreign trades. William Digby
estimated that from 1870 to 1900, £900 Million was transferred from India. In
the 17th Century India was a relatively urbanized section with a large export
trade.

EXPORTS OF GEMS AND JEWELLERY IN RECENT TIMES:

There are diamond processing units in Mumbai, Trichur, Coimbatore, Jaipur,
and Goa. Mumbai is the prime trading centre for diamond exports as it accounts
for 93 percent of diamond exports being dispatched from Mumbai airport.
Exports of gems & Jewellery-total in India averaged 18289.18 INR TML from
2008 until 2023, reaching an all-time high of 31241.09 INR TML in October of
2021 and a record low of 4315.23 INR TML in May of 2020. As per the 2020
statistics, India’s gems and Jewellery exports account for 3.5% of the world’s total
exports, making it among the top 7 highest exporters in the world. Diamond
jewellery ranks first in the world’s total exports with a 29.0% share, followed by
silver-cut diamonds and lab-grown diamonds and synthetic stones with 22.0% and
32.7% shares, respectively. As per reports, India has witnessed a massive growth
of 54.13% over the previous year and has reached USD 39.14 billion in 2021-22.
Moreover, the Government of India is looking forward to taking it to a milestone
of US$ 100 billion in jewellery exports in the coming years (by 2027).
HISTORICAL SIGNIFICANCE:

The gems and jewelry industry in India has a rich and ancient history, dating
back thousands of years. Here's an overview of its historical evolution:

Ancient Roots:

 India has been renowned since ancient times for its expertise in jewelry
making.
 The civilization of the Indus Valley, dating back to around 2500 BCE,
produced intricate jewelry using gold, silver, beads, and gemstones.
 Ancient texts such as the Vedas and the Ramayana mention the
significance of jewelry in Indian culture, symbolizing wealth, status, and
religious beliefs.

Influence of Ancient Kingdoms:

 Various dynasties and kingdoms that ruled over the Indian subcontinent,
such as the Mauryas, Guptas, and Mughals, contributed to the
development and patronage of the gems and jewelry industry.
 The Mughal era (16th to 19th centuries) is particularly renowned for its
exquisite jewelry craftsmanship, with rulers like Emperor Akbar
promoting the art of jewelry making and gemstone cutting.

Traditional Techniques and Craftsmanship:

 Indian jewelry artisans developed sophisticated techniques for

metalworking, engraving, enameling, and gemstone setting.
 Regional styles and designs emerged, reflecting the diverse cultural
heritage of India's different regions, such as the intricate filigree work of
Rajasthan and the temple jewelry of South India.

Colonial Influence:

 During British colonial rule in India, the gems and jewelry industry faced
challenges due to economic exploitation and trade policies favoring raw
material exports.
 However, Indian craftsmanship continued to thrive, catering to both local
and international markets, including British aristocracy.

Post-Independence Growth:

 Following India's independence in 1947, the gems and jewelry industry

experienced renewed growth and modernization.
  Government initiatives aimed at promoting exports, such as the
establishment of the Gem and Jewelry Export Promotion Council
(GJEPC) in 1966, facilitated the industry's expansion into global markets.

Global Recognition:

 India emerged as a leading exporter of gems and jewelry, renowned for

its craftsmanship, quality, and diverse product range.
 The country's gems and jewelry exports gained prominence in
international markets, contributing significantly to India's foreign
exchange earnings.

Contemporary Landscape:

 Today, the gems and jewelry industry in India is a dynamic and thriving
sector, encompassing a wide range of products, including gold, diamonds,
colored gemstones, and costume jewelry.
 Traditional craftsmanship coexists with modern technologies, with Indian
artisans and manufacturers adopting advanced techniques for design,
manufacturing, and quality control.
The gems and jewellery industry plays a pivotal role in the Indian
economy, contributing significantly in various aspects:

Economic Contribution:

1. GDP Growth: The gems and jewelry industry is a major contributor to

India's Gross Domestic Product (GDP). Its substantial exports and
domestic sales contribute significantly to economic growth.
2. Employment Generation: The industry is one of the largest employers
in the country, providing livelihoods to millions of people, particularly in
rural and semi-urban areas. It encompasses a wide range of jobs, from
skilled artisans to managerial positions, supporting diverse skill sets.
3. Foreign Exchange Earnings: India's gems and jewelry exports generate
substantial foreign exchange earnings, contributing to the country's
balance of payments. This helps stabilize the economy and supports
international trade.

Export Revenue:

1. Key Export Sector: The gems and jewellery industry is one of India's
top export sectors. It enjoys a strong global reputation for its
craftsmanship, quality, and variety of products, including diamonds, gold,
silver, and gemstones.
2. Global Market Presence: Indian gems and jewellery products are in
demand worldwide, with exports reaching numerous countries across the
globe. The industry's export prowess enhances India's global trade
position and strengthens its economic ties with other nations.

Cultural Heritage:

1. Preservation of Tradition: The gems and jewellery industry is deeply

intertwined with India's rich cultural heritage. It preserves traditional
craftsmanship and design techniques that have been passed down through
generations, contributing to the preservation and promotion of cultural
identity.
2. Symbolism and Tradition: Jewelry holds significant cultural and
religious importance in Indian society. It is worn on various occasions
and ceremonies, symbolizing wealth, status, and auspiciousness. The
industry's products are integral to Indian rituals, festivals, and
celebrations.
STATEMENT OF PROBLEM:

The main purpose of this study is to analyse India’s exports of Gems and
Jewelleries over the years.

OBJECTIVES OF THE STUDY:

 To study about the jewellery exports made by India.

 To shed light on various issues and scope of gems and jewellery export in
India.

 Analyse the growth of export in the sector.

 To create awareness about the exports.

 To find out where India exports its jewelleries the most.

SCOPE OF THE STUDY:

Artifacts of India’s export of gem and jewellery are acknowledged all over the
world for their exquisite craftsmanship. However, in the present scenario
industry is confronting various hindrances which obstruct the path to realize its
true potential.
This study will help us understand better about the exports made by the country
in this sector.
 CHAPTER-2
REVIEW OF LITERATURE

LITERATURE REVIEW
The Indian gems and jewellery have passed through different phases, and have
been influenced by different religious and cultural streams. The rich tradition
craft is still relevant in the Indian household, and in many communities the use
of craft is for artistic pursuits and as a source of occupation. Review of literature
is the most simple and fruitful basis of formulating the research problems
precisely. For this purpose, the research must review the works already done by
the others. Relevant bibliographical reviews of studies are most useful to the
researcher for formulating the problems precisely. Review of literature of a
subject clarifies the conceptual framework and provides a detailed account of
work which was done in the past on that subject. It proves helpful to the
candidate in deciding the line of action to start his research study. Keeping in
view all these facts a review of existing literature has been made by the
researcher.
A review of existing literature on the gems and jewellery industry in India
reveals a rich body of research covering diverse aspects of this sector. Here's an
overview of some key themes and findings:

1. Economic Significance and Export Dynamics:

 Numerous studies highlight the economic importance of India's gems and

jewelry industry, emphasizing its significant contribution to GDP,
employment generation, and foreign exchange earnings.
 Research examines export dynamics, including trends, market
destinations, and factors influencing export growth, shedding light on the
industry's role in India's international trade.

2. Manufacturing Practices and Supply Chain:

 Scholars explore manufacturing practices and supply chain dynamics

within India's gems and jewelry industry, examining traditional
craftsmanship, technological advancements, and the role of various
stakeholders.
 Research assesses the adoption of modern technologies, such as
CAD/CAM systems and 3D printing, in jewelry production, and analyzes
their impact on manufacturing efficiency and product quality.

3. Market Trends and Consumer Behavior:

  Literature reviews investigate market trends and consumer behavior
patterns in the gems and jewelry sector, identifying factors driving
demand, preferences for design and materials, and purchasing behavior.
 Researchers examine the influence of cultural factors, changing fashion
trends, and demographic shifts on consumer choices, providing insights
into market segmentation and product positioning strategies.

4. Policy Environment and Regulatory Framework:

 Studies assess the policy environment and regulatory framework

governing India's gems and jewelry industry, analyzing trade policies, tax
regimes, and compliance requirements.
 Research explores the impact of government policies on industry growth,
competitiveness, and sustainability, and evaluates the effectiveness of
export promotion schemes and regulatory reforms.

5. Technological Innovation and Design:

 Literature reviews focus on technological innovations and design trends

shaping India's gems and jewelry industry, highlighting the adoption of
advanced manufacturing techniques and digital design tools.
 Scholars examine the integration of new technologies, such as laser
cutting and computer-aided design, in jewelry production, and assess
their implications for product innovation and market competitiveness.

6. Sustainability and Ethical Practices:

 Increasingly, research addresses sustainability issues and ethical practices

within India's gems and jewelry industry, considering concerns related to
responsible sourcing, environmental impact, and labor rights.
 Studies analyze industry initiatives aimed at promoting sustainable
practices, such as certification programs, supply chain transparency
measures, and corporate social responsibility initiatives.

7. Challenges and Opportunities:

 Literature reviews identify key challenges and opportunities facing

India's gems and jewelry industry, including fluctuating raw material
prices, evolving consumer preferences, global competition, and
regulatory complexities.

1. Verma, Manohar Lall (1983) studied that the diamond exporters and the
diamond industry faced various problems of which one of the major problems
was import of rough diamonds (raw materials) he analysed that the import cost
of rough diamond was very much on a higher side and this industry was faced
many problems as the cost of raw materials was very high the cost of finished
goods was also on a higher side. Further he analysed that this industry was
based on labour incentive and the use of modern machines and modern
technology was at the least. He also analysed that there was always a shortage
of skilled man power as in India there are no professional institutes or training
institutes which train people for this industry, he also stated that diamonds are
one of the largest exporters in the country which gives a lot of foreign exchange
by way of foreign remittance from abroad. In his study of the theses, he reported
that, during the period of five years from 1979 to 1983, diamond imported by
USA from India rose from 33 per cent to 48 per cent and diamonds imported by
Japan from India increased from 36 per cent to 50 per cent.

2. Purushothaman, Nair C. N. (1992) Mr. Nair highlighted the potential

exports and the potential problems of diamond industry. He informed that the
diamond industry is a traditional industry group diamond industry in India has
made larger contributions to our export earnings year after year in value terms
was Rs. 44.80 crores in the year 1970-1971 which rose to 618.40 crores in the
year 1980-1981. He further continued that neither India is having a source of
diamond nor thus India has the consumption balance. India is only famous for
the processing of diamonds. With special reference to Kerala, he discussed
various problems faced by the diamond industry such as supply of poor-quality
stones, poor bank facilities, labour problem and arbitrary pricing etc. In the end
he offered some suitable policy implications to get rid of various problems that
have been faced by the diamond industry.

3. Sevdermish, Menahem, Alan R. Miciak and Levinson (1998): in this paper

submitted he studied that there is a rising trend in this industry. The diamond
cutting industry has a great impact on the jewellery industry. They examined
that the modern diamond grew at a remarkable rate of about 85 % in the
polished weight and by about 250 % in the value of polished diamonds. Today
India has controlled over more than 90% of polished diamonds and about 10 %
as a share of its wastage.
4. GJEPC (2007): The Abbreviation GJEPC stands for “Gems and Jewellery
Export Promotion Council”. This book also highlights list of Harmonized
System (HS) codes of chapter 71 pertaining to gems and jewellery along with
the classification of HS codes specially pertaining to the GJEPC.

5. GJEPC (2009): In the year 2009 Gem and Jewellery Export Promotion
Council discussed and highlighted the major points of the Foreign Trade Policy
(FTP) 2004-09 in the field of gems and jewellery Industry. It analysed the
contribution made by all gem and jewellery products which are exported from
India from last 10 years. It also discussed what are the objectives and functions
of GJEPC and it also identifies the facilities provided by the GJEPC to the trade
of diamond and jewellery industry.

6. Kala, Alok (2009): He has discussed the Export wise performance for the
financial year 2008-09 of Indian gems and jewellery sector. He informed the
GJEPC that Indian gems and jewellery has witnessed decline due to recession
and slowdown of the US Economy. However, there was an overall growth in
this sector which was primarily due to increase in the prices of the raw materials
and the finished goods. On the other hand the study revel that the cut and
polished diamonds and the colour gem stones have shown reduction in their
exports but the growing demand of gold is very strong as gold is considered to
be a major saving device.

7. Sevdermish, Menahem, Alan R. Miciak and Levinson (1998): In their

paper, they studied the rise of the modern diamond cutting industry in India and
its impact on the global diamond trade. They examined that the modern
diamond industry in India grew at a remarkable rate, which is 82 fold by
polished weight and 249 fold by polished value. Today India accounts for about
seventy per cent by weight and thirty five per cent by value of diamonds
polished annually worldwide. India has had a profound effect on this trade
because of the enormous quantities of small and low-cost diamonds
manufactured there.
8. Siegel, Dina (2009): She highlighted that there are many dealers of diamond
and jewellery industry who are present in India having their blood relations
around the world especially in Antwerp, Dubai, and Belgium. He also stated
that usually people who are inward in this trade are Pallanpuris (City called
Palampur in Gujarat). Antwerp and Belgium are mainly famous for origin of
rough diamonds.

9. Mital, Amita (2008): She analysed matters related to competition involved

and matters relating to, demand and supply conditions of India’s gems and
jewellery products. The Government has taken initiatives to form regulation to
promote exports of gems and jewellery products which are also discussed in her
study. She has also pointed out that demand of gems and jewellery depends on
various factors such as economic growth, employment levels, income levels,
saving levels, rates of tax, banking Facilities, credit availability and competition
based primarily on the cartage, quality, quantity, availability of designs, shapes
of diamonds and mainly on the pricing of the product. She also analysed that the
diamond and jewellery by some group of people who hold diamond and
jewellery also as investments for a long span of time.
 CHAPTER-3
RESEARCH METHODOLOGY

Research Methodology:
Methodology is a way to solve the research problem systematically. It includes
various steps that are generally adopted by the researcher studying research
problem along with logic behind them.

Research Design:

Descriptive research design is used for this study. A research design is the
overall operational pattern or frame work of the project and from which source
the stimulated information is collected. A research design can be defined as a
series of advanced decisions taken together from a specific master plan or
model for the conduct of investigation.

Methods of Data Collection:

1.SECONDARY DATA:

Secondary source is a process of describes, discuss, interpret, comments,

analysis, evaluate and summarize. It is the conclusion about the event reported
in primary sources. These are usually in the form of published works such as
journal articles or books that discuss or evaluate someone else’s original
research.

2.DATA COLLECTION:
Gathering export data from reliable sources such as government reports, trade
databases, and industry publications.

3.DATA ANALYSIS:
Utilizing statistical methods to analyze trends, growth rates, and patterns in
exports.
Conducting comparative analyses across different time periods and market
segments.

4.MARKET RESEARCH

Surveys and interviews with industry experts, exporters, and government

officials.

Examination of trade policies, tariffs, and regulations affecting exports.

TOOLS USED FOR DATA ANALYSIS:

1.Bar Diagram
2.Pie Diagram
 CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
SEVERAL INDIAN GEMS AND JEWELLERY COMPANIES HAVE
SUCCESSFULLY IMPLEMENTED EXPORT STRATEGIES,
LEVERAGING THEIR STRENGTHS IN CRAFTSMANSHIP,
INNOVATION, AND MARKET UNDERSTANDING.

1. Tanishq (Titan Company Limited):

 Background: Tanishq, a leading jewellery brand in India, is a subsidiary

of the Tata Group's Titan Company Limited.
 Export Strategy: Tanishq has focused on creating a strong brand
presence in international markets by offering high-quality, design-driven
jewellery.
 Market Segmentation: The company targets specific segments within
the global market, catering to diverse consumer preferences and cultural
sensitivities.
 Localization: Tanishq adapts its product offerings and marketing
strategies to suit the preferences of different regions, ensuring relevance
and appeal to local consumers.
 Retail Expansion: Tanishq has established a network of retail outlets and
distribution channels in key international markets, facilitating
accessibility and brand visibility.
 Success Factors: Tanishq's success in international markets is attributed
to its focus on quality, innovation, and customer-centric approach,
coupled with strategic marketing and distribution efforts.

2. Kiran Gems:

 Background: Kiran Gems is one of the world's largest manufacturers of

diamonds, based in Surat, India.
 Export Strategy: Kiran Gems has adopted a vertically integrated
business model, controlling the entire diamond manufacturing process
from sourcing rough diamonds to polishing and distribution.
 Efficiency and Scale: The company leverages economies of scale and
operational efficiency to offer competitive pricing and timely delivery to
international clients.
 Customer Relationship Management: Kiran Gems places a strong
emphasis on building long-term relationships with international clients,
understanding their specific requirements, and providing personalized
service.
 Innovation and Technology: The company invests in cutting-edge
technology and innovation to enhance diamond manufacturing processes,
 improve product quality, and maintain a competitive edge in global
markets.
 Global Presence: Kiran Gems has established a strong presence in major
diamond trading hubs worldwide, including Antwerp, Dubai, and Hong
Kong, enabling it to serve a diverse clientele across continents.
 Success Factors: Kiran Gems' success in the international diamond
market is attributed to its vertical integration, operational excellence,
customer-centric approach, and commitment to innovation and
technology.

3. Tribhovandas Bhimji Zaveri (TBZ) Ltd.:

 Background: TBZ Ltd. is a renowned jewellery retailer in India with a

legacy spanning over 150 years.
 Export Strategy: TBZ has expanded its presence in international
markets by offering a diverse range of jewellery collections catering to
different tastes and occasions.
 Product Differentiation: The company focuses on product
differentiation and innovation, incorporating traditional Indian
craftsmanship with contemporary designs to appeal to global consumers.
 Brand Building: TBZ has invested in brand-building initiatives and
marketing campaigns to enhance brand visibility and recognition in
international markets.
 Partnerships and Collaborations: TBZ collaborates with international
retailers, distributors, and e-commerce platforms to expand its reach and
penetrate new markets effectively.
 Quality Assurance: The company maintains stringent quality control
measures to ensure the authenticity and integrity of its products,
complying with international standards and regulations.
 Success Factors: TBZ's success in international markets is attributed to
its commitment to quality, innovation, brand-building efforts, strategic
partnerships, and a customer-centric approach.
MARKET ENTRY STRATEGIES OF INDIAN GEMS AND JEWELRY
COMPANIES IN KEY EXPORT DESTINATIONS:

1. Malabar Gold & Diamonds in the Middle East:

 Background: Malabar Gold & Diamonds is one of the largest jewelry

retailers in India with a significant presence in the Middle East.
 Market Entry Strategy: The company adopted a strategy of establishing
retail outlets in strategic locations across the Middle East, targeting high-
traffic areas frequented by locals and expatriates.
 Localized Marketing: Malabar Gold & Diamonds tailored its marketing
campaigns to resonate with the cultural preferences and traditions of
Middle Eastern consumers, emphasizing themes such as weddings,
festivals, and family celebrations.
 Partnerships and Collaborations: The company formed partnerships
with local business groups and distributors to navigate regulatory
requirements, understand consumer behavior, and gain insights into
market dynamics.
 Product Differentiation: Malabar Gold & Diamonds differentiated its
product offerings by incorporating traditional Indian craftsmanship with
contemporary designs, catering to the diverse tastes of Middle Eastern
consumers.
 Customer Experience: The company prioritized customer service and
engagement, offering personalized shopping experiences, after-sales
support, and loyalty programs to enhance customer satisfaction and
loyalty.
 Success Factors: Malabar Gold & Diamonds' success in the Middle East
market is attributed to its strategic retail expansion, localized marketing
efforts, strong partnerships, product differentiation, and customer-centric
approach.

2. Gitanjali Gems in the United States:

 Background: Gitanjali Gems is a leading Indian jewelry manufacturer

and retailer with a global presence, including in the United States.
 Market Entry Strategy: The company entered the US market through
strategic acquisitions of established jewelry brands and retailers, gaining
immediate access to distribution networks and customer bases.
 Brand Portfolio Strategy: Gitanjali Gems leveraged its diverse portfolio
of brands, spanning different price segments and consumer
demographics, to capture a broader market share in the US.
  Omnichannel Presence: The company invested in omnichannel
retailing, combining physical stores with e-commerce platforms, mobile
apps, and social media channels to reach and engage US consumers
across multiple touchpoints.
 Celebrity Endorsements: Gitanjali Gems collaborated with celebrities
and influencers in the US, leveraging their star power to enhance brand
visibility, credibility, and appeal among American consumers.
 Quality Assurance: The company implemented rigorous quality control
measures and certifications to assure US consumers of the authenticity
and integrity of its products, complying with industry standards and
regulations.
 Success Factors: Gitanjali Gems' success in the US market is attributed
to its strategic acquisitions, brand portfolio strategy, omnichannel
presence, celebrity endorsements, and commitment to quality assurance.

3. PC Jeweller in Southeast Asia:

 Background: PC Jeweller is a leading Indian jewelry retailer with a

growing presence in Southeast Asia, including countries like Singapore,
Malaysia, and Thailand.
 Market Entry Strategy: The company adopted a phased approach to
market entry, starting with flagship stores in prime locations in major
cities before expanding into secondary markets and online channels.
 Product Customization: PC Jeweller offered customization services to
Southeast Asian consumers, allowing them to personalize jewelry designs
according to their preferences, cultural traditions, and occasions.
 Cultural Sensitivity: The company demonstrated cultural sensitivity and
adaptability in its marketing communications, product offerings, and
customer interactions, respecting local customs, beliefs, and taboos.
 Corporate Social Responsibility: PC Jeweller engaged in corporate
social responsibility initiatives in Southeast Asia, contributing to
community development projects, environmental conservation efforts,
and education programs to build goodwill and trust among local
stakeholders.
 Success Factors: PC Jeweller's success in Southeast Asia is attributed to
its phased market entry strategy, product customization, cultural
sensitivity, corporate social responsibility, and focus on building long-
term relationships with customers and communities.
 TABLE NO.:1

Gems and Jewellery commodities export growth in 2021-22 over 2019-20

Polished lab grown diamonds 211%

Platinum Jewellery 180%

Silver Jewellery 61%

Studded Gold Jewellery 60%

 TABLE NO.:2

COUNTRY WISE SHARE OF INDIA’S GEMS AND JEWELLERY

EXPORTS IN 2021-2022

U.S.A 37%
HONG KONG 24%
UAE 14%
BELGIUM 5%
ISRAEL 4%
THAILAND 3%
OTHERS 13%
 TABLE NO.:3

INDIA’S GEMS AND JEWELLERY EXPORTS (US $ BILLIONS)

2017-18 32.7
2018-19 31
2019-20 35.6
2020-21 25.5
2021-22 39.3
2022-23 34.9
 TABLE NO.:4

INDIA’S DIAMOND, GOLD JEWELLERY EXPORTS ($ MILLIONS)

2004-05 15000
2005-06 16100
2006-07 17000
2007-08 19000
2008-09 23000
2009-10 27000
2010-11 31100
2011-12 34000
2012-13 36000
 TABLE NO.:5
LAB GROWN DIAMONDS AND SYNTHETIC STONES (2019-20)
GLOBAL EXPORT SHARE AND INDIA’S POSITION
INDIA 34.72%
HONG KONG 25.62%
CHINA 13.68%
USA 10.63%
UAE 2.15%
BELGIUM 2.14%
THAILAND 1.68%
ISRAEL 1.53%
JAPAN 1.33%
RUSSIA 1.32%

Diamonds and Synthetic Stones

India

Hong Kong

China

USA

UAE Diamonds and Synthetic Stones

Belgium

Thailand

Israel

Japan

Russia
0 5 10 15 20 25 30 35 40
 TABLE NO.:6
GEM AND JEWELLERY SECTOR (2019-22)
GLOBAL EXPORT SHARE AND INDIA’S POSITION
SWITZERLAND 14.23%
UK 11.63%
USA 10.93%
HONGKONG 8.14%
INDIA 4.70%
CHINA 3.56%
UAE 3.38%
SOUTH AFRICA 3.18%
CANADA 2.82%
GERMANY 2.75%
SINGAPORE 2.68%

GEMS AND JEWELLERY SECTOR

SWITZERLAND 14.23
UK 11.63
USA 10.93
HONGKONG 8.14
INDIA 4.7
CHINA 3.56
UAE 3.38
SOUTH AFRICA 3.18
CANADA 2.82
GERMANY 2.75
SINGAPORE 2.68

GEMS AND JEWELLERY SECTOR

TABLE NO.:7
 GOLD SECTOR (2019-20)
GLOBAL EXPORT SHARE AND INDIA’S POSITION
CHINA 14.68%
SWITZERLAND 12.49%
USA 9.03%
ITALY 8.64%
HONGKONG 8.49%
TURKEY 8.03%
INDIA 5.95%
FRANCE 5.89%
INDONESIA 3.70%
SINGAPORE 3.42%

GOLD EXPORT SHARE

GOLD EXPORT SHARE

16

14

12

10

8
14.68

6 12.49

9.03 8.64 8.49

4 8.03
5.95 5.89
2 3.7 3.42

0
CHINA SWITZERLAND USA ITALY HONGKONG TURKEY INDIA FRANCE INDONESIASINGAPORE

TABLE NO.:8
 SILVER JEWELLERY 2019-22
GLOBAL EXPORT SHARE AND INDIA’S POSITION
INDIA 32.74%
THAILAND 16.77%
CHINA 8.97%
ITALY 8.88%
GERMANY 7.94%
USA 5.56%
HONGKONG 3.62%
SPAIN 1.53%
ISRAEL 1.49%
TURKEY 1.39%

SILVER JEWELLERY
35

30

25

20

15

10

0
INDIA THAILAND CHINA ITALY GERMANY USA HONGKONG SPAIN ISRAEL TURKEY

SILVER JEWELLERY

TABLE NO.:9
 DIAMOND JEWELLERY SECTOR 2019-22
GLOBAL EXPORT SHARE AND INDIA’S POSITION
INDIA 30.82%
USA 20.42%
HONGKONG 15.18%
ISRAEL 10.84%
BELGIUM 5.82%
CHINA 2.53%
UAE 2.22%
THAILAND 2.05%
SWITZERLAND 1.99%
UK 1.29%

DIAMOND JEWELLERY

INDIA USA HONGKONG ISRAEL BELGIUM

CHINA UAE THAILAND SWITZERLAND UK

TABLE NO.:10
COLOR GEMSTONES SECTOR 2019-22
 GLOBAL EXPORT SHARE AND INDIA’S POSITION
HONGKONG 36.00%
USA 18.88%
THAILAND 9.73%
INDIA 5.97%
SWITZERLAND 4.84%
SINGAPORE 3.41%
ITALY 2.01%
ISRAEL 1.95%
SRI LANKA 1.84%
BRAZIL 1.68%

COLOR GEMSTONES
40

35

30

25

20

15

10

0
G A D
DI
A D E LY EL KA ZI
L
ON US LA
N
IN AN OR IT
A RA AN A
GK AI E RL AP IS IL BR
N T H
IT
Z NG SR
HO SI
SW

COLOR GEMSTONES

TABLE NO.:11
IMITATION JEWELLERY 2019-22
 GLOBAL EXPORT SHARE AND INDIA’S POSITION
CHINA 45.17%
HONGKONG 9.77%
FRANCE 8.75%
ITALY 5.95%
GERMANY 4.70%
THAILAND 3.42%
USA 2.30%
AUSTRIA 1.73%
SINGAPORE 1.62%
INDIA 1.42%

IMITATION JEWELLERY

CHINA

HOGKONG

FRANCE

ITALY

GERMANY

THAILAND

USA

AUSTRIA

SINGAPORE

INDIA

0 5 10 15 20 25 30 35 40 45 50

IMITATION JEWELLERY
 CHAPTER-5
FINDINGS, SUGGESTIONS AND CONLUSION

FINDINGS:
 The gems and jewellery sector has contributed $34993.90 million to
India’s exchange earnings, which states the decline in growth rate by
10.58 percent.

The Polished lab grown diamonds have the highest export growth rate.

India exports majority of its Gems and jewellery to U.S.A followed by

Hongkong.

India’s export of gems and jewelleries reached a record high in the year
2021-22 with 39.3 billion.

India leads the global export share of Lab grown diamonds and synthetic
stones, Silver jewellery, Diamond jewellery sectors as of 2019-22.

India holds the 5th place in global export share of gem and jewellery
sector.

India holds the 7th place in global export share of gold sector.

India holds the 4th place and 10th place in global export share of Colour
Gemstones and Imitation Jewellery sectors respectively.

Relative analysis of product category indicates that cut and polished

diamonds contains the highest share in the total export i.e. around 56.13
percent and growth of 12.69 percent in period 2013-14 with its major
demand especially from Belgium followed by the USA, the UK, South
Africa and Israel. There is a sign of strengthen in cutting, polishing and
other manufacturing activities in India as the import of rough diamonds
witnessed rise of 11.98 per cent with $16716 million.

SUGGESTIONS:

To support the growth of gems and jewelry exports, policymakers can

consider implementing the following suggestions:
1. Export Promotion Initiatives:
 Introduce targeted export promotion initiatives, such as trade
shows, buyer-seller meets, and marketing campaigns, to showcase
Indian gems and jewelry products to international buyers.
 Provide financial assistance, subsidies, or incentives to gems and
jewelry exporters to participate in international trade events and
exhibitions, facilitating market access and networking
opportunities.

2. Skill Development Programs:

 Establish skill development programs and vocational training
centers to enhance the capabilities of jewelry artisans, craftsmen,
and designers, focusing on advanced techniques, design
innovation, and quality control measures.
 Collaborate with industry associations, educational institutions, and
training providers to develop industry-relevant curriculum and
certification programs, ensuring a skilled workforce that meets
international standards.

3. Infrastructure Development:
 Invest in infrastructure development projects, such as jewelry
manufacturing parks, gemstone processing centers, and testing
laboratories, to improve production efficiency, quality assurance,
and compliance with international standards.
 Upgrade transportation and logistics infrastructure to facilitate the
movement of raw materials, finished products, and exports,
reducing lead times and transportation costs for gems and jewelry
exporters.

4. Trade Facilitation Measures:

 Simplify export procedures, documentation requirements, and
customs clearance processes to streamline trade facilitation for
gems and jewelry exporters, reducing bureaucratic hurdles and
administrative burdens.
 Enhance access to export finance, credit facilities, and insurance
services for gems and jewelry exporters, enabling them to manage
trade risks, secure working capital, and expand their export
volumes.
5. Market Diversification Strategies:
 Develop market intelligence reports and trade data analytics to
identify emerging export markets, consumer trends, and demand
patterns for gems and jewelry products, guiding exporters in their
market diversification strategies.
  Facilitate market entry initiatives in untapped regions or niche
segments by providing market research support, market entry
assistance, and export promotion incentives tailored to specific
target markets.

6. Quality Standards and Certification:

 Strengthen enforcement of quality standards, certification
requirements, and ethical sourcing practices for gems and jewelry
exports, enhancing the credibility and trustworthiness of Indian
products in international markets.
 Provide technical assistance and capacity-building support to gems
and jewelry exporters to obtain internationally recognized
certifications, such as ISO, GIA, and BIS, demonstrating
compliance with global quality and sustainability standards.

7. Policy Advocacy and Stakeholder Engagement:

 Foster dialogue and collaboration between policymakers, industry
stakeholders, trade associations, and exporters to address industry
challenges, formulate policy reforms, and advocate for the interests
of the gems and jewelry sector.
 Establish a dedicated task force or advisory committee comprising
government officials, industry leaders, and subject matter experts
to provide strategic guidance and recommendations for promoting
gems and jewelry exports.

Policy interventions play a crucial role in addressing challenges and

leveraging opportunities in the Indian gems and jewelry industry. Here are
some key policy interventions that can be considered:

Addressing Challenges:

1. Tax Reforms:
  Simplify and rationalize the tax structure for the gems and jewelry
sector to reduce compliance burdens and transaction costs.
 Provide clarity on GST rates and input tax credits, especially for
items like diamonds and gemstones, to avoid ambiguity and
facilitate smooth business operations.

2. Skill Development Initiatives:

 Implement skill development programs tailored to the gems and
jewelry industry, focusing on enhancing technical skills, design
capabilities, and quality assurance measures.
 Collaborate with industry associations and training institutes to
offer specialized courses and apprenticeship programs to address
the shortage of skilled manpower.

3. Access to Finance:
 Enhance access to finance for gems and jewelry enterprises,
particularly small and medium-sized firms, by offering collateral-
free loans, working capital support, and export credit facilities.
 Encourage banks and financial institutions to develop customized
lending products for the gems and jewelry sector, taking into
account the unique financing needs and cash flow cycles of
businesses.

4. Infrastructure Development:
 Invest in infrastructure development projects, such as jewelry
manufacturing parks, gemstone processing centers, and testing
laboratories, to upgrade production facilities and enhance
competitiveness.
 Improve transportation and logistics infrastructure to reduce transit
times, lower shipping costs, and ensure timely delivery of raw
materials and finished products to domestic and international
markets.

Leveraging Opportunities:

1. Export Promotion Measures:

 Expand export promotion initiatives to showcase Indian gems and
jewelry products in key international markets through trade fairs,
exhibitions, and buyer-seller meets.
  Provide financial incentives, subsidies, and reimbursements to
gems and jewelry exporters participating in overseas marketing
events and promotional activities.
2. Market Diversification Strategies:
 Facilitate market diversification efforts by providing market
intelligence reports, trade data analysis, and export assistance
tailored to emerging markets and niche segments.
 Support gems and jewelry exporters in exploring new export
destinations, establishing distribution channels, and adapting
products to meet the preferences of target consumers.
3. Technology Adoption:
 Promote technology adoption and innovation in the gems and
jewelry industry through incentives, grants, and research funding
for investments in advanced manufacturing techniques, digital
design tools, and automation solutions.
 Foster collaboration between industry players, research institutions,
and technology providers to drive innovation, enhance
productivity, and maintain competitiveness in the global market.
4. Quality Assurance and Certification:
 Strengthen quality assurance mechanisms and certification
standards for gems and jewelry products to enhance their
competitiveness and credibility in international markets.
 Provide support and incentives for gems and jewelry exporters to
obtain internationally recognized certifications, such as ISO, GIA,
and BIS, demonstrating compliance with global quality and ethical
standards.

By implementing these policy interventions, policymakers can address the

challenges facing the Indian gems and jewelry industry while leveraging
opportunities to enhance its competitiveness, expand its export footprint, and
contribute to the country's economic growth and development.

 It is imperative that raw-material being the necessity must be achievable

in adequate quantity of good quality and at reasonable price. Thus,
complexities involved in getting import license by government need to be
simplified.
 The associated agencies should organize trade fairs and exhibitions for
exporters and manufacturers. It would provide a platform for natural
exchange or near orientation of ideas, techniques and scientific methods
and expand the market size globally.

 To catch up with the new trends in global market product planning and
development is highly commended. The government must establish
design development centres to bring new futuristic designs in order to
compete internationally.

 Manufacturers should give urgency on their “comparative advantage”

which is generated through market structure, technology, product
diversification.

 Focus must reroute towards other products of gem and jewellery like
pearls, Synthetic stones, costume/fashion jewellery, non-gold jewellery
and coloured gem stones.

 To publicize the products internationally among diverse sections

promotions techniques should be instigated through media network.

 To compete in international market Indian traders need to refine the

quality of their gems and jewellery products and work towards providing
better working condition and environment to the workforce.

 Association like (ITPO), IIFT and GJEPC should refine their operation
and contribute additionally towards export promotion of gems and
jewellery. The agencies should sincerely support the industry from every
aspect and work towards development.

CONCLUSION:

It is inferred that the fate of India’s gems and jewellery industry is

auspicious, considering that the demand for its worthy creations are
expanding all over the world. The industry plays a very significant role in
country’s economy by tint of its employment creation, estimated value of
production, foreign exchange earnings and immense potential in exports.
Accordingly substantial and synergized tactics should be adopted to
procure strong presence in international market. The sector is facing
various complications due to its traditional approaches thus there is
urgency of acquiring modern techniques in addition to advanced tools and
equipment acceptable by the workers.

This would lead to economical and high standard products approved

internationally. To sustain primacy market awareness, trends, customer
inclination, design verification and standard price of artifacts need to be
tracked. Consequently, it can be deduced that export of gems and
jewellery could be favourable if the production and export is reasonable,
competitive, and meeting customer expectations.

Despite of all this it appears that the performance in the year FY 2019-22
would be reassuring due to various measures taken by the government
and expanding demand of jewellery. Country's gems and jewellery
market would two-fold in coming five years. The advancement will be
the result of nourishing business environment and the government's
investor friendly policies.
 BIBLIOGRAPHY

BIBLIOGRAPHY:

Websites referred:

1. www.wikipedia.com

2. www.GJEPC.org

3. www.paperpublications.org
4. www.shodhganga.com

5. www.ibef.org

6. www.timesofindia.com

7. www.tradingeconomics.com

8. www.icrier.org