The Indian gems and jewellery industry is competitive in the world market due to its low cost of production and availability of skilled labour.
The industry has a worldwide distribution network, which has been established over a period of time. India has set up more than 3,000 offices worldwide for promotion and marketing of Indian diamonds.
The Indian diamond industry has acquired leadership position in cutting and polishing of rough diamonds. India has the world’s largest cutting and polishing industry, employing around 800,000 people (constituting 94% of global workers) with more than 500 high-tech laser machines.
The industry is well supported by government policies and the banking sector - around 50 banks provide nearly $3 billion credit to the Indian diamond industry. India is expected to have its diamond bourse functioning at Mumbai in 2006. India is therefore a significant player in the world gems and jewellery market both as a source of processed diamonds as well as a large consuming market.
The sector is largely unorganised at present with a small but growing organised sector. The Indian gems and jewellery sector is also largely unorganised at present. There are more than 15,000 players across the country in the gold processing industry, of which only about 80 players have a turnover of over $4.15 million.
There are about 450,000 goldsmiths spread throughout the country. India was one of the first countries to start making fine jewellery from minerals and metals and even today, most of the jewellery made in India is hand-made.
The industry is dominated by family jewellers, who constitute nearly 96% of the market.
Organised players such as Tata with its Tanishq brand, have, however, been growing steadily carving a 4% market share. As India’s jewellery market matures, it is expected to get more organised and the share of family jewellers is expected to decline.
There are more than 6,000 players in domestic diamond processing industry. The average gestation period for setting up a diamond cutting and polishing unit is 15 months. The low gestation period, coupled with low capital cost allows easy entry into the sector.
This has led to the industry being largely characterised by a large number of small scale players. However, just as in the case of jewellery, the share of the organised sector has increased significantly in recent years due to an increase in demand for better and finer quality finished goods.
The industry has a worldwide distribution network, which has been established over a period of time. India has set up more than 3,000 offices worldwide for promotion and marketing of Indian diamonds.
The Indian diamond industry has acquired leadership position in cutting and polishing of rough diamonds. India has the world’s largest cutting and polishing industry, employing around 800,000 people (constituting 94% of global workers) with more than 500 high-tech laser machines.
The industry is well supported by government policies and the banking sector - around 50 banks provide nearly $3 billion credit to the Indian diamond industry. India is expected to have its diamond bourse functioning at Mumbai in 2006. India is therefore a significant player in the world gems and jewellery market both as a source of processed diamonds as well as a large consuming market.
The sector is largely unorganised at present with a small but growing organised sector. The Indian gems and jewellery sector is also largely unorganised at present. There are more than 15,000 players across the country in the gold processing industry, of which only about 80 players have a turnover of over $4.15 million.
There are about 450,000 goldsmiths spread throughout the country. India was one of the first countries to start making fine jewellery from minerals and metals and even today, most of the jewellery made in India is hand-made.
The industry is dominated by family jewellers, who constitute nearly 96% of the market.
Organised players such as Tata with its Tanishq brand, have, however, been growing steadily carving a 4% market share. As India’s jewellery market matures, it is expected to get more organised and the share of family jewellers is expected to decline.
There are more than 6,000 players in domestic diamond processing industry. The average gestation period for setting up a diamond cutting and polishing unit is 15 months. The low gestation period, coupled with low capital cost allows easy entry into the sector.
This has led to the industry being largely characterised by a large number of small scale players. However, just as in the case of jewellery, the share of the organised sector has increased significantly in recent years due to an increase in demand for better and finer quality finished goods.