Goldsmith

Overview of Gems and Jewellery Sector in India

Gold has always been regarded as precious as well as important by citizens of this country, be it in the form of bars, coins or jewellery. It is used as a medium of saving, gifting, form of transfer of wealth, as well as a highly liquid financial instrument. Initially, India was a large producer of gold; its reserves have been depleted by its ever increasing demand and now remain negligible. In recent years, India has accounted for almost one-fourth of the annual global demand for gold and is one of the world?s largest importers of gold. Further, raw materials, such as silver, platinum, gemstones and diamonds, among others are also imported from different parts of the world.

Indian clusters for diamond processing Surat, Ahmedabad; for gemstone processing Bhavnagar and Jaipur; and for handmade gold jewellery Kolkata, Thrissur and Coimbatore are among other areas that are known world over for their products. Every region of the country has a different style of jewellery unique in its proposition. Some examples of these traditional jewellery forms are Bikaneri, Dhokra, Minakari and Filligree. Collectively, India is a source of manufacturing all varieties of products; and its presence is critical in the global gems and jewellery sector.

Growth Estimates and Latest Trends of Gems and Jewellery Sector in India

Traditionally, jewellery was not a daily-wear item. It was worn on special occasions. However, recent times have seen an increasing propensity to wear jewellery on a daily basis, for example wearing jewellery to offices. This has led to a shift in consumer tastes from heavy and chunky designs to lightweight and contemporary ones. Designers and product development personnel who can identify such shifts and potential new lines will be key assets for players.

With production of gold meeting less than 0.5 percent of the total annual demand, India has had to import gold to meet its demand. Its share of the annual global demand for gold has steadily increased from ~13 percent in 2002 to more than a quarter, ~26 percent, in 2012. Further analysis of the trend through the years indicates that barring a marginal dip in 2008 and 2009, the global recession years, India?s share has steadily been increasing. Gold is the second-largest import item after petroleum crude, and its imports were estimated at INR 345000 crore during 2011?12, an upshot of 49.2 percent over 2010?11. With the increase in the domestic market, a lesser quantum of gold is being exported, impacting the external sector stability. RBI working group to study issues related to gold imports, further estimates that gold imports will account for almost 2 percent of the GDP in the coming years and add to the current account deficit (CAD) adversely. This prompted the Government of India to introduce policies governing import and export of gold in the second half of 2013. The import duty on gold was raised to 10 percent and a minimum export requirement of 20 percent on any imports. All these factors will result in more job opportunities for candidates applying in this sector across India.