Despite having undergone challenging times in 2008-09, the Indian gems and jewellery industry is experiencing upward trend due to the GJEPC’s constant endeavor to sustain trade relations with the USA and also expand horizon by penetrating other markets. India’s gem and jewellery exports posted a modest growth of 1.45 per cent during 2008-09 at US$ 21.1 billion, primarily driven by gold jewellery exports, including medallions and ornaments. The country exported US$ 20.8 billion of gem and jewellery in 2007-08.

But it has achieved a remarkable recovery within one year wherein polished gems and jewellery, one of the biggest exports from India, grew 16% during 2009-10, even as the value added in India was down by 20% compared to two years ago. The sector accounted for around 13% of India’s total exports in the country last year and hit a record $28 billion in exports, 36% higher than the pre-recession figure.

The growth was more pronounced in gold jewellery exports, which increased to $9.4 billion from $5.6 billion two years ago. Diamond exports increased to $17.5 billion from $14.2 billion during the last two years. India’s share in US diamond jewellery market increased from 20% to 25% last year.

Thanks to the momentum, the exports are set to double by 2013, according to the industry body, Gems and Jewellery Export Promotion Council (GJEPC). The true resilience of the Indian industry was seen over the last year when the industry braved and continued with their consistent plans of building trading relations and penetrating newer markets. As a result, today India is undeniably the US’s largest supplier of jewellery and the US alone imports 25 per cent of its jewellery from India.

The industry is still reeling under the impact of the job losses, though things have continued to get better for the diamond industry.

With consumer consciousness increasing, the future of organized retail in India is very bright. The organized sector of the gems and jewellery industry in India is estimated to grow at 40 per cent per annum. The increasingly savvy Indian consumer is becoming partial to branded jewellery which is associated with better services, premium quality products and attractive exchange policy.

The growing popularity of machine-made jewellery over traditional handcrafted jewellery is also spurring the growth of the organized retail segment. A study released by the Bullion Association of India in March 2009, stated that the share of branded jewellery in the total market was growing at a pace of 20-30 per cent annually. The number of gold retailers in the country has increased by 40 per cent since the year 2000, with 150 domestic and over 65 international established brands, the study said. India dominates the diamond processing trade with 11 out of 12 diamonds being cut and polished in India.

India also dominates the gold and silver consumption globally with consumption of about 800 tonnes per annum. The surge in exports is a strong indicator that the gem and jewellery export market had overcome the recessionary phase of decline and could continue to see high growth rates in the years ahead.