GEMS AND JEWELLERY
FDI in Indian Diamond Industry
The Gems and Jewellery sector plays a significant role in the Indian economy, contributing around 7% of the country’s GDP and 15% to India’s total merchandise exports. It also employs over 4.5 million workers and is expected to employ 8.23 million by 2022. One of the fastest-growing sectors, it is extremely export oriented and labour intensive.
India's gems and jewellery exports stood at US$ 18.49 billion in FY20P (till October’19, Provisional). During the same period, exports of cut and polished diamonds stood at US$ 12.24 billion, thereby contributing about 73.42 per cent of the total gems and jewellery exports in value terms. Exports of gold coins and medallions stood at US$ 617 million and silver jewellery exports stood at US$ 737.74 million between April-October 2019. The country is deemed to be the hub of the global jewellery market because of its low costs and availability of high-skilled labour. India is the world’s largest cutting and polishing centre for diamonds, with the cutting and polishing industry being well supported by government policies.
The Indian Government has permitted 100% FDI in Indian diamond industry or gems and jewellery sector under the automatic route.