In this work the author focuses on the prospects of gems and jewellery as a potential source of export earnings in India and the problems and constraints it may encounter.
The assimilation of the Indian economy through the twin channels of trade and capital flows has been accelerated in the wake of globalization. Unrestricted international trade maximises the flow of goods and services, accumulates income, builds capital and supplies required inputs for industrialization among the participating countries. Moreover, such trade results in facilitating more diffusion of knowledge, enhances efficiency of inputs which transforms into manufactured outputs and consequently paves the way for economic development.
Table of Contents
India’s foreign Trade
India’s Principal Exports
Gems & jewellery export in India
Review of literature
Objectives and methodology
Methodology
India’s gems and jewellery sector
Diamonds processing and exports
Export of gems and jewellery
Import and Export of gems and jewellery
Export and import of gold jewellery
Growth drivers of gems and jewellery sector
Problems encountered by gems and jewellery exporters
Concluding remarks
Research Objectives and Thematic Focus
This paper examines the role and performance of the Indian gems and jewellery sector within the broader framework of international trade. It aims to evaluate the sector's contribution to foreign exchange earnings and employment, identify key growth drivers, analyze current problems, and propose strategies for enhancing India's export competitiveness in the global market.
- Export performance analysis of Indian gems and jewellery.
- Economic impact, employment generation, and growth prospects.
- Identification of structural problems and industry constraints.
- Analysis of the shift towards technology, organized retail, and branding.
- Role of government policy and export facilitation measures.
Excerpt from the Book
Problems encountered by gems and jewellery exporters
The gems and jewellery sector is beset with numerous problems which are enumerated below:
1) India’s gems and jewellery industry is massively unorganized and 90 percent of the players having family owned businesses. This unorganized sector obstructs the ability of Indian gems and jewellery industry to emerge as a world- class supplier.
2) Appropriate policy alterations in the trade policies are highly imperative in India so that India can exploit opportunities in global market in the context of gems and jewellery sector and enhance its export potentially.
3) Another impediment in the path of gems and jewellery industry is that it is predominantly depends on the supply of raw materials; as India imported rough diamonds mainly from Belgium, the UK, Israel and the UAE etc. while gold jewellery is imported from Switzerland, South Africa, the UAE and Australia etc. In India 90 per cent of raw material is imported, which is subsequently processed to finish products to sale in the global market.
4)As exporters rely on mostly on imported raw material, therefore; more export should lead to more import. Global marketing requires a changing fashion of gems and jewellery particularly in the background of very high prices of diamond, gold and silver. In the absence of design development centres and lack of knowledge to innovate latest designs to match with the changing trend of foreign buyers the exporters are unable compete at the global level.
Summary of Chapters
India’s foreign Trade: Provides a brief overview of India's recent export performance and trade balance, highlighting the country's reliance on merchandise and services.
India’s Principal Exports: Analyzes the composition of India's principal exports and identifies shifts in market share for sectors including gems and jewellery.
Gems & jewellery export in India: Explores the cultural significance of the sector and its evolution into a major global manufacturing hub for jewellery.
Review of literature: Evaluates previous research and studies to establish the research gap regarding the sector's economic contribution and persistent constraints.
Objectives and methodology: Defines the research objectives and describes the desk research approach using secondary data sources.
India’s gems and jewellery sector: Details the sector's contribution to GDP, total exports, and its significant employment potential.
Diamonds processing and exports: Focuses on India's leadership in the diamond cutting and polishing industry and current export values.
Export of gems and jewellery: Discusses the industry's role as a major exporter and identifies key international destinations for Indian products.
Import and Export of gems and jewellery: Examines the balance between the import of raw materials and the export of finished jewellery products.
Export and import of gold jewellery: Reviews India's status as a leading exporter of gold jewellery and highlights recent trade figures.
Growth drivers of gems and jewellery sector: Identifies key factors like skilled labour, government policies, and infrastructure that foster growth in the industry.
Problems encountered by gems and jewellery exporters: Enumerate the structural, financial, and regulatory challenges facing Indian exporters today.
Concluding remarks: Summarizes the sector's importance and the potential impact of CAD/CAM technology and organized retail on its future success.
Keywords
Trade and development, Gems & jewellery, Global market, Export destinations, Economic integration, Foreign exchange, India, Diamond industry, Globalization, Export performance, Employment generation, Gems and Jewellery Export Promotion Council, Economic development, Jewellery manufacturing, Supply chain.
Frequently Asked Questions
What is the central focus of this research paper?
The paper examines the export performance, economic contribution, and growth prospects of the Indian gems and jewellery sector, while also addressing its challenges.
What are the primary themes discussed in the work?
Central themes include the impact of globalization on Indian trade, the role of the gems and jewellery sector in GDP and employment, and the shift towards technological innovation in design.
What is the primary objective of this study?
The objective is to evaluate the sector's export potential, identify obstacles faced by Indian exporters, and suggest measures to improve the industry's global competitiveness.
Which research method is employed in this paper?
The study utilizes desk research, relying on secondary data collected from government reports, industry publications, and academic research papers.
What aspects of the gems and jewellery sector are covered in the main body?
The main body covers market size, diamond processing dominance, gold demand drivers, export/import dynamics, and the impact of government policies like FDI and GST exemptions.
Which keywords best characterize this research?
Key terms include gems & jewellery, global market, Indian economy, export performance, diamond processing, and international trade.
Why is the Indian gems and jewellery sector considered "unorganized"?
The paper notes that 90 percent of the industry players operate family-owned businesses, which limits the industry's ability to scale and compete effectively as a world-class supplier.
What role does CAD/CAM technology play in the future of the industry?
The implementation of Computer-Aided Design and Manufacturing is highlighted as a critical tool for minimizing product development costs, improving design quality, and meeting international market demands.
How has the Indian government supported this sector?
The government has facilitated growth through policies such as allowing 100 percent FDI under the automatic route, IGST exemptions for exporters, and the establishment of the Gold Monetisation Scheme.
What are the main export destinations for Indian jewellery?
The paper identifies key international partners including the UAE, the United States, Russia, Singapore, Hong Kong, and China as major importers of Indian jewellery.
- Quote paper
- Professor S. N. Tripathy (Author), 2019, Jewellery as a potential source of export earning in India, Munich, GRIN Verlag, https://www.grin.com/document/496186
