The Gem & Jewellery Export Promotion Council (GJEPC) recently released the annual performance for the Indian Gem & Jewellery sector, declaring a contribution of US$ 39898.81 million to India's coffers in terms of foreign exchange earnings. In the year 2014-15, the G&J industry successfully battled several economic issues including the downturn in China, the political and terrorist unrest in Middle East, declining European market and the suffering Russian Ruble, which had a direct and adverse impact on the G&J exports that saw a downward trend. However, the foresight and agility of GJEPC and the industry helped survive in these trying times, owing to the significant actions taken towards divesting in the USA and UAE to boost export trade from India.

The promotional efforts towards increasing exports to the USA through Buyer Seller Meets, co organizing VOD in Dubai, India Pavilions at global Trade Fairs, and on-going dialogues with key G&J players in the USA, value-additions in the form of design excellence and trends forecast seminars for Indian manufacturers have resulted in a better understanding and the positive state of the industry stands testimony to the Council’s efforts. At the same time, the Council has taken substantive measures to instill confidence of the global consumer by addressing ethical issues.

The lower costs of importing roughs through the SNZ establishment in India is anticipated to benefit the Indian G&J industry hugely in the coming years and will result in an upward growth curve, very soon. The Council and members of the industry applaud the Govt. for having scrapped the 80:20 rule that has immediately boosted the exports of gold jewelry. India International Jewelry Show 2015 will also be seen in a new avatar with several new initiatives that will augment the trade relations and networking significantly. The GJEPC is optimistic about maintaining the current levels of performance and towards that will align with diamond mining companies such as De Beers, Rio Tinto and others to promote diamond and diamond jewelry at a generic level.

GJEPC’s thrust areas in alignment with the ‘Make in India’ campaign will mainly include implementation of the much awaited turnover taxation system for Indian Diamond Industry and implementation of Special Notified Zone in Bharat Diamond Bourse to facilitate smooth movement of rough diamonds on consignment basis by RBI approved overseas diamond miners, in year 1. In the mid-term, GJEPC will champion the mission to further industry growth and strongly establish India as a global diamond trading hub. This includes skill and talent development, working with the GOI to commission exploration programmes and surveys to ascertain availability of rough diamonds and colored gemstones in India. The Government of India may spearhead initiatives to legalize current mining activity through an appropriate licensing framework and develop a regulatory framework for new mining and exploration.

Summary of 2014-2015 performance

• The overall gross exports of gems & Jewellery at US$ 39898.81 million (Rs. 243885.81 crores) is showing a decline of 0.62% in dollar terms and growth of 0.43% in Rs term as compared to US$ 40147.50 million (Rs. 242837.07 crores) for the period April 2013-March 2014

• The overall gross imports of Gems & Jewellery at US$ 31470.78 million (Rs. 192074.99 crores) is showing a growth of 1.29% (2.65% in Rs. term) as compared to US$ 31071.18 million (Rs. 187109.89 crores) for the same period previous year.

This import is reflected through a positive impact on the exports of both plain and studded Gold and silver jewelry, propelling growth for Indian design and manufacturing sector.

Cut and Polished Diamonds

The overall gross export of Cut & Polished diamonds at US$ 23160.18 million (Rs. 141514.28 crores) is showing a decline of 5.46% (-4.50% Rs. term) as compared to US$ 24498.48 million (Rs. 148185.20 crores) for the same period of previous year. This can be attributed to the decline in volume terms of the gross Import of rough diamonds at 1473.41 lakh carats during April 2014 – March 2015 that has shown a decline of 9.06% compared with the imports at 1620.17 lakhs carats during April 13 – March 14.

At the same time, the overall gross Imports of Cut & Polished diamonds at US$ 6943.07 million (Rs. 42410.19 crores) is showing a growth of 6.15% (7.11% Rs. term) as compared to US$ 6540.77 million (Rs. 39585.97 crores) for the same period of previous year. Gross Imports of rough diamonds at US$ 16740.85 million (Rs 102131.80 crores) in April 2014 – March 2015 have shown a growth of 0.15% (+ 1.75 % Rs. term) compared with the imports at US$ 16716.22 million (Rs. 100377.27 crores) for April 13 – March 14, owing to the increasing costs due to the anticipated shortage of roughs as compared to the increasing demand of diamond.

Gold & Silver Jewellery

Provisional gross export of Gold jewellery for the period April 14 – March 15 at US$ 9852.18 million (Rs. 60198.63 crores) shows growth of 17.77% (18.64% Rs. term) over the comparative figure of US$ 8365.68 million (Rs. 50738.85 crores ) for April 13 – March 14. Provisional gross export of Silver Jewellery for the period April 14 – March 15 at US$ 2054.52 million (Rs. 12583.73 crores) shows growth of 39.29% (41.41% Rs. term) over the comparative figure of US$ 1475.02 million (Rs. 8898.78 crores ) for April 13 – March 2014. This growth stands testimony to the design and manufacturing excellence of the Indian G & J sector and a true reflection of PM Modi’s ‘Made in India’ vision.

The Gem & Jewellery Export Promotion Council continued with its various initiatives aimed at promoting international as well as domestic trade in India. Some of the initiatives included India International Jewellery Week (IIJW), India International Jewellery Show (IIJS), India Pavillions at global exhibitions including the latest initiatives of Beijing International Jewellery Fair 2015 in China and Vicenza Oro Dubai 2015, Smart Jewellery Show 2015 in Chicago, Budget recommendations to the Government of India and regular industry reports. Please refer annexure for detailed calendar of G&J events.