Abstract
In the Indian gems and jewellery industry, the cottage industry-based diamonds-processing and jewellery-making units compete with modern factories which use state-of-the-art machinery and computerized operations. The Indian gems and jewellery units have set up a worldwide network of offices in every hotspot on the diamond industry map.
The phenomenal growth in gems and jewellery exports is a record 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. This sector has grown to become one of the leading export oriented industries in the country and contributes around 15–20 per cent of total merchandise exports (and 20–30% of manufactured exports). This sector recorded an export turnover of US$ 14 billion during calendar year 2004. Now even the Government of India perceives the gems & Jewellery sector as not only a potential and a large foreign exchange earner but also a thrust area for employment generation.
The most important contributors in the industry have been Cut and Polished Diamonds; Coloured gemstones; and Gold Jewellery accounting for almost 95–97 percent of Gems and Jewellery exports of India. According to GJEPC, India accounts for 80–85 per cent of the world's CPD market in volume terms, 55–60 per cent in value terms and about 90 per cent in unit terms.
This figure clearly indicates that India is likely to become a leading exporter of jewellery and gems both in manufacturing and trading. The industry has shown a very impressive growth and is moving in the right direction. India has been able to achieve a dominant position in diamonds and is emerging as the fastest growing jewellery sector in the world. The adequate support extended by the government in terms of pragmatic policies has helped significantly in helping India to be a global hub for gems and Jewellery both in manufacturing and trading. However, lot more has to happen for potential of this sector to be fully achieved.
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