1) Gems and Jewellery Gems and Jewellery symbolise Indian tradition in a lot many ways.

A legacy that passes from one generation to another, the components of jewellery include not only conventional gold but also diamond, platinum accompanied by a variety of precious and semi-precious stones. The Indian gems and jewellery sector is expected to grow at a compound annual growth rate (CAGR) of around 13 per cent during 2011 ± 2013, on the back of increasing government efforts and incentives coupled with private sector initiatives, according to a report 'Indian Gems and Jewellery Market Forecast to 2013' The diamond industry in India is predicted to remain stable during 2010-11 due to improved prices and steady demand. On the back of healthy demand from Western markets like the US and Europe, India's gems and jewellery exports rose by about 22 per cent year-on-year (y-o-y) to US$ 2.86 billion in January 2011. Rajiv Jain, Chairman, Gems and Jewellery Export Promotion Council (GJEPC), said that they are expecting the jewellery exports to surpass the target of US$ 30 billion in 2010-11. Industry Structure: Although the market is highly dominated by unorganised players, with increase in consumer income and economic prosperity, the future of organised branded jewellery in India is very bright. In its bid to enhance the market strategy, a gems and jewellery special economic zone (SEZ) sprawling over 40 acres with an investment of US$ 441.1 million is being planned to be set up by Gold Souk, the jewellery mall developer. The company plans to have residential apartments named Gold Souk City, apart from having gems and jewellery manufacturers from Thailand and Dubai who will open their units in India. The US and European markets constitute about 60 per cent of India¶s gems and jewellery exports. Indian exporters are also exploring other new markets including South America and East Asia in order to reduce their dependency on the West. Gold: India is one of the largest bullion markets in the world. It has been until now, the undisputed single-largest Gold bullion consumer. As per the study µHeart of gold' by the World Gold Council (WGC), the industry association for the gold industry, India owns over 18,000 tonnes of above-ground gold stocks (all physical and gold holdings, including private, Reserve Bank of India and institutional) worth around US$ 800 billion. WGC maintains a highly positive outlook on gold demand for future considering a 30 per cent jump in the imports during December 2010. For the quarter ended December 31 2010, India's gold jewellery demand rose 47 per cent to 210.5 tonne from a year ago, the WGC data showed. India's share of global demand, which stood at 16 per cent in 2009, rose to 25 per cent in 2010. The country is also the biggest buyer of gold jewellery with a 20 per cent share of the market.

it is poised for 20 per cent growth. It is predicted that the number of outlets selling platinum jewellery would increase to around 1.6 billion from US$ 22 billion a year earlier. it has now been decided to allow Duty Drawback on such exports. In terms of the percentage share held in gold of total foreign reserves. Most platinum jewellery manufacturers are targeting 20-40 years age group consumers with high disposable income. contributing over 80 per cent of the country's diamond processing industry with annual revenue of around US$ 13. The diamond jewellery industry grew 30 per cent in calendar year 2010. period.000 outlets in the next 2-3 years. Exports : Gems and jewellery exports from India. As per the Platinum Guild International (India).59 billion in comparison to the same period last fiscal. platinum jewellery has gained momentum in the past few years not only worldwide but also in India.9 billion. exports of precious items increased by 38.44 per cent year-on-year in January 2011. Furthermore. During the April 2010-January 2011. as consumers are attracted towards using items as both luxury fashion and investment. as compared to 2010 due to growing demand for gems and jewellery. Diamond: India is the largest diamond cutting and polishing centre in the world.Exports in January 2011 gained 22 per cent to US$ 2. The country is also the third largest consumer of polished diamonds. followed by gold jewellery (15. according to the Gem & Jewellery Export Promotion Council. During calendar year 2011. Surat is India's diamond processing hub. the number of outlets selling platinum jewellery increased from 12 in 2000-01 to over 300 currently. Platinum : Due to the increasing gold prices. y To neutralize duty incidence on gold Jewellery exports.81 percent to US$ 30.7 tonnes of gold and 8. Shipments increased to US$ 30. the government has incorporated some other measures like providing interest subvention of two per cent to labour intensive export sectors and duty drawback facilities. rose by 39 per cent in the April 2010-January 2011 period. accounting for about 95 percent share of the global market by number of pieces.5 per cent of gold reserves.03 billion. The industry is set to continue its growth momentum this year. India stood at 11th position with 557.38 per cent) and coloured gemstones (3. Exports of cut and polished diamonds saw the maximum growth of 23. in order to promote gems and jewellery export. as calculated by the World Gold Council. .8 per cent). the government has formulated new rules for faster clearance of import and export consignments of specific goods including jewellery and gems. Government Initiatives/FTP: In a move to boost the industry. the largest supplier.Gold import is likely to rise by 15 per cent in 2011 to around 805 tonnes.

and saddler. The composition of export of leather and leather products from India has undergone a structural change during the last three decades.e.    2)LEATHER INDUSTRY : Leather Industry in India. the value limits of personal carriage have been increased from US$ 2 million to US$ 5 million in case of participation in overseas exhibitions.41%. it is planned to establish ³Diamond Bourse (s)´. particularly from exports. technology driven designers. Direct and indirect employment of the industry is around 2 million. The export increased from Rs. for export promotion tours. ranging from footwear. leather industry has tremendous potential for employment generation. The limit in case of personal carriage. India accounts for a share of 2. all of which are both for domestic distribution and export markets. Assaying and Hallmarking Centre's Mark. gloves. this is slightly higher at 3. BIS Mark. QUALITY STANDARDS:   Hallmark has been acting as a safeguard to purchasers of gold and gold articles for centuries in various countries. garments. Jeweler's Mark and year of Marking denoted by a code letter and decided by BIS The Gems & Jewellery Promotion Council is India¶s certification authority.1 million to US$ 1 million. The Indian gems and jewellery industry has made rapid strides in design. 30760 mn in 1991-92 to Rs. from merely an exporter of raw material in the sixties to that of value added products in the nineties. Hallmark consists of five components i. Certification for quality diamonds and jewellery has given a fillip to exports and resulted in greater acceptance of Indian products in the world market. The export of leather and leather products increased manifold over the past decades. Leather goods manufacturers produce a wide variety of products. shoe uppers. aimed at optimum utilisation of available raw materials for maximising the returns. has also been increased from US$ 0. which was mere 7% in 1956-57. growth and exports. 290 mn in 1956-57 and from Rs. as samples. powered by a new generation of young. The value added finished products presently constitute around 80% of the total export from the Industry. the Fineness number (corresponding to given caratage).Today the industry ranks 8th in the export trade in terms of foreign exchange earnings of the country. With the exclusion of non-leather footwear. To promote export of Gems & Jewellery products. . 140007. A new facility to allow import on consignment basis of cut & polished diamonds for the purpose of grading/ certification purposes has been introduced.y y y In an endeavour to make India a diamond international trading hub. Apart from a significant foreign exchange earner.33 mn in 2007-08. There has been increasing emphasis on its planned development.62% in the global leather trade during 2006. occupies a place of prominence in the Indian economy. The skilled and semi-skilled workers constitute nearly 50% of the total work force. in view of its massive potential for employment. accessories. professionally trained.

footwear accounts for 18 percent share of total exports of leather exports. ‡ ‡ ‡ ‡ . Major production centers are Chennai (Madras). Itlay. Various types of shoes produced and exported from India include dress shoes. EPCG Scheme at Zero Duty has been introduced. Features of Leather Sector in India y y y y y Employs 2. Annual export value poised to touch about 2 billion US dollars. Hongkong. Brazil France. Indonesia FTP for Leather Industry 2009-14 ‡ Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi finished leather from public bonded ware houses. moccasins. Dewas and Ambur have been recognized as µTowns of Export Excellence¶ for leather products. A large part (nearly 60-65%) of the production is in the Small/Cottage Sector. Endowed with 10% of the world raw material and export constitutes about 2% of the world trade. To accelerate exports and encourage technological up gradation. Delhi. its production estimated over 700 million pairs per annum. Spain. Enhancement of FPS rate to 2%. additional Duty Credit Scrip's shall be given to Status Holders @ 1% of the FOB value of past exports. hibachis. Germany . Agra. To aid technological up gradation of our export sector. y Very high value addition within the country. The large domestic market and the opportunity to cater to world markets make India an attractive destination for technology and investments. and booties. subject to payment of 50% of the applicable export duty. ballerinas.5 million persons. would also significantly benefit the leather sector. Germany. Major Export Destinations : Usa. Most of the modern footwear manufacturers in India are already supplying to well establish brands in Europe and USA. casuals. France. Kanpur.Indian Leather Footwear Industry India is the world's second largest producer of footwear. Mumbai (Bombay). sandals. y Has enormous potential for future growth. Amongst top 8 export earners for India. At about US $ 300 million per year. Uk Major Competitors In The Global Market : China. Kanpur. Spain. Itlay. Calcutta and Jalandhar. sports shoes. Hongkong.

India's large service industry accounts for 57. . floorcoverings. India ranked at 12th position in World trade in commercial services in 2009.2% of the country's GDP.5 per cent over 2007-08. y international quality assessment / certification bodies like SATRA. The service sector makes up a further 34% of employment. y The services exports reached US$ 102 billion in 2008-09 registering a growth of 12. Germany. UK and PFI. safety products.5 per cent. ISO 14000 as well as the SA 8000 norms.7 per cent in 2009-10. y The miscellaneous services category share has increased by 16.5 percentage points to 45.4 per cent in 2008-09 as compared to 2000-01. clothing. Problems of Indian Leather Industry: € € € € € Lack of warehousing support from the government International price fluctuation Huge labour force resulting in high labour charges Lack of strong presence in the global fashion market Unawareness of international standards by many players Challenges to Indian Leather Industry: € Major part of the industry is unorganized € Limited scope for mobilizing funds through private placements and public issues (many businesses are family-owned) € Difficulty in obtaining bank loans resulting in high cost of private borrowing € Stricter international standards € High competition from East European countries and other Asian countries € Lack of communication facilities and skills 3) Service Exports in India y y y y The economy of India is the eleventh largest economy in the world. leathergoods and fabric care.Quality Manufacturing Standards y Many Indian footwear factories adhere to ISO 9000.1 percentage points to 76. y SATRA Technology Centre was formed as the Shoe and Allied Trade Research Association in 1919 to serve the footwear industry but has since built on this core expertise and expanded to serve other consumer product industry sectors including furniture. y The share of software services increased by 6. Production Centers Delhi Mumbai Bangalore Chennai Hyderabad Kolkata NCR Domestic Industry y The services sector grew by 8.

y Management consultancy includes services contracted for and provided to organizations by specially trained & qualified persons assisting in identifying problems. manufacturing. recommend solutions y Engineering Consultancy is application of physical laws and principles of Engineering to a broad range of activities in the areas of construction.y Non-software services increased by 9.5% of global trade in services y International firms are larger in size and operate across countries which give them market access to these countries and also the opportunity to tap the market for consulting business. It also accounts for 21 per cent of the total FDI inflow.9 per cent in 2008-09.6 percentage points to 30.17 billion y Foreign Tourist Arrivals during the period January-February 2010 were 10.000 crores and expected to grow at a CAGR of 25% Export performance in consulting services Consultancy contracts secured largely in West Asia followed by pacific. 10.7% . y However Indian consulting organizations are growing with great pace to compete with international organizations y Local presence in the countries benefits multinational organizations in liaisoning with clients y In these countries with sustained business development resulting better prospecting record with large expenditure on business development when compared to Indian firms who largely depend on proactive business development in these countries at low business development cost. It is about Rs.92 lakh with a growth rate of 12. south east Asia and South Asia Indian share in consultancy service is 0. Types of services y Consultancy y Management consultancy organizations y Engineering consultancy organizations y Legal consultancy organizations y Socioeconomic consultancy organizations y Financial consultancy organizations y Tourism y Hospitality y IT/Offshoring Size of consultancy in India India engages about 100. transportation and environment y India ranks 11th in Asia-pacific and 62nd in world in tourism y It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources y Tourism industry¶s contribution to the Indian economy through FDI between 2000 and 2010 is $2.000 persons in 5000 consulting firms.

which are physically incorporated in the export product (making normal allowance for wastage). An Advance Authorisation is issued under Duty Exemption Scheme. 2. Japan FTP Provisions in services y FTP 2004-09 has announced setting up of Export promotion council to map opportunities for key services in import markets & develop strategic market access programme. fuel. against their foreign exchange earnings under the Served from India Scheme 4) FTP TEA 1. .25. ³Domestic Tariff Area (DTA)´ means area within India which is outside SEZs and EOU/ EHTP/ STP/BTP.4 of the Handbook of Procedure ± Vol. the provisions contained in para. Other destinations include: Europe. Duty Exemption Scheme consists of (a) Advance Authorisation Scheme and (b) Duty Free Import Authorisation Scheme (DFIA). An Advance Authorisation is issued to allow duty free import of inputs. The Duty Exemption Scheme enables duty free import of inputs required for export production. as per the extant guidelines y The exporter produces a certificate from the Foreign Mission of India concerned. y Key initiatives taken in development of consultancy services are through MDA(Market development assistance). 1962 and the Rules made there under. which are consumed/utilized in the course of their use to obtain the export product.y Total spending on products & services of IT sector in India increased from US $ 5 billion to US $20 billion y India accounts for 65% of global market in offshore IT services y High growth in software exports require deep & enduring innovations across multiple dimensions: Infrastructure offshoring Knowledge innovation Internet protocol based solutions Better technologies & research capabilities y USA is the major export destination. about the fact of non-recovery of export proceeds from the buyer y Drawback scheme is governed by the provisions of the Customs Act. DTA sale limit of instant tea by EOU units has been increased from the existing 30% to 50%. catalysts etc. Minimum value addition under advance Authorisation scheme for export of tea has been reduced from the existing 100% to 50%. may also be allowed under the scheme. 2. energy. of the Foreign Trade Policy (FTP) (2009-2014) would not be applicable to the Duty Drawback scheme. oil. In addition. y Hotels and Restaurants are allowed to import duty free equipment and other items including liquor. I. MAI(Market Access Initiatives) y The write-off on the basis of merits is allowed by the Reserve Bank or by the AD Category ± I banks on behalf of the Reserve Bank.

Under the scheme. 3. Exporters can obtain the duty incentive when they import or they can claim it through the Duty Entitlement Passbook Scheme (DEPB) after the shipment. Export of tea has been covered under VKGUY scheme benefits. (iv) Forest Based Products. and to offset other disadvantages.³EOU´ means Export Oriented Unit for which an LOP has been issued by Development Commissioner. Mr Anand Sharma. Duty Credit Scrip benefits are granted with an aim to compensate high transport costs. according to the Foreign Trade Policy 2009-14 unveiled by the Commerce Minister. and (v) Other Products. (ii) Minor Forest Produce and their value added variants. Export of tea has been covered under VKGUY Scheme benefits. as notified from time to time. (iii) Gram Udyog Products. exporters are entitled to 5 per cent duty credit scrip on the export value of the consignment. . Vishesh Krishi and Gram Udyog Yojana (VKGUY) (Special Agriculture And Village Industry Scheme) Objective of VKGUY is to promote exports of: (i) Agricultural Produce and their value added products.