How much is the gems and jewellery industry worth in India?

October 14, 2022

Gems and jewellery financing

India is one of the world’s critical gems and jewellery trading growth markets.

In fact, did you know that from April to August 2022, export jewellery from India reached a total of US$16,695.56 million? According to gems and jewellery export data, this was 4.4% more than the previous year, with export values of over US$15,991.68 million.

India’s dominance lies in the country’s affordable labour prices and quality education. As a result, businesses also have easy access to highly qualified workers.

In addition, it is a sophisticated diamond cutting and polishing hub. And finally, local government regulations favour and promote the sector.

Gems and jewellery trading in India may soon be among the country’s most profitable trade sectors.

Today, the world stands at the edge of a global economic boom in gems and jewellery, and India’s poised to sit at the centre. This article provides insight into India’s expanding gem and jewellery business, including artificial jewellery export from India.

So read on!

Origins of Gems and Jewellery Trading in India

India’s traditional jewellery is beautiful and showcases the country’s cultural and aesthetic history. The Indian jewellery-making practice has been around for over 5,000 years.

India has also always been a leader in the gemstone trade, an ancient industry dominated by everyone from the Moghuls to the findings of J-B Tavernier, a French jewels merchant and traveller.

In fact, India was once the only place in the world selling gems—this early trade spanned more than 2,000 years. Merchants worldwide came to the continent to buy valuable Golconda diamonds, Kashmir sapphires, and Gulf of Mannar pearls.

And just as in the West, jewels signified the wealth, stability, and status of those in the Indian upper classes.

The Museum of Gem and Jewellery Federation was founded in 2015 in Jaipur. This “gems and jewellery in Jaipur” trading centre and museum safeguards valuable items of national and historical significance.

Evolution of the Indian Gems and Jewellery Industry

The Indian gem and jewellery trading sector is bustling and fast-growing.

India is the world’s most significant source of trained, competent, and adaptable workers, and deregulation-focused government policies encourage the proliferation of all types of businesses. As a result, the Indian gem and jewellery export industry contributes about 7% to the country’s GDP.

In 1966 the Gem & Jewellery Export Promotion Council (GJEPC) was set up for the sector of gems and jewellery in Surat. One example is, they help traders with how to export jewellery from India to the USA.

It helped (and continues to help) exporters expand their efforts to make the gem and jewellery sector a powerhouse of India’s export-driven economy. Since its inception, GJEPC has sought to make it the world’s one-stop shop for luxury goods.

A Market Overview in Brief
The global gems and jewellery sector saw periods of slow growth at the height of the pandemic. Despite this, the worldwide market size for this lucrative industry is projected to exceed US$480 billion by 2025.

Indian Gems and Jewellery in Numbers
India provides 29% of all jewellery sold around the world. The country has more than 300,000 companies selling gems and jewellery, which is predicted to grow.

Today, the Indian gem and jewellery sector has a large number of:

This rapid development in demand has resulted in a skilled labour shortage.

Government Support

Because gem and jewellery export from India to the USA and other countries is essential to India’s industrial production, the Indian government is dedicated to promoting the products to ever-more countries—for example, supporting jewellery export from India to Canada.

This includes:

These actions aim to guarantee this vital sector survives into the future.

Export growth is primarily attributable to increased import demand from the sector’s top export market: the United States. North America, the Middle East, and the Far East are the other primary export destinations for Indian gems and jewellery.

Various government programs in India are supporting industrial expansion and exports. This includes the creation of a special low-tax zone in Mumbai focused mainly on the gem sector that aims to compete with the world’s leading diamond trading hubs.

Benefits of Invoice Financing for the Indian Gem and Jewellery Industry
Indian exporters who sell to the US and EU can take advantage of invoice financing or factoring. For example, this is one way to help the gems and jewellery export to the USA from India.

This can help them in several ways:

The significant advantage of receivables financing is the release of frozen cash. This helps gem and jewellery exporters better employ their capital to produce more profits.

Keep Your Gems and Jewellery Supply Chain Safe

Exports are up in 2022 mainly because import demand has picked up in the USA and EU, two of India’s biggest export markets. As a result, many Indian traders have been ready and waiting to fill orders fast.

This operation is both internal and external. It is internal because domestic players are starting to work together, and it is external because large global gems and jewellery trading companies are entering the worldwide market.

As an importer, you make purchases from suppliers in other countries. If you’re thinking about improving the payment terms on your suppliers’ invoices, which could lead to higher discounts on the goods you purchase) and ensure that your supply chain is safe, you should consider invoice financing for your suppliers.

Want to know more on how it works? Contact us at Incomlend and we’ll be happy to give you more details.