MINI PROJECT-2 REPORT

On

GEMS AND JEWELLARY

Submitted to

A.P.J. Abdul Kalam Technical University,

LUCKNOW

For the partial fulfillment of

MASTERS OF BUSINESS ADMINISTRATION

BATCH 2021-2023

Submitted to Submitted by

Faculty Name Name

DR. VIDHI AGARWAL VANSHIKA AGARWAL

Designation Roll No.

Associate Professor 2108200700081

AJAY GARG KUMAR INSTITUTE OF MANAGEMENT

27th K.M Stone, NH—24, Delhi Hapur Bypass Road,

Adhyatmik Nagar, Ghaziabad- 201009

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 CERTIFICATE

This is to certify that the report titled Gems and Jewellery Industry has been carried out by
VANSHIKA AGARWAL under my guidance as a part of Mini Project 2 work for MBA at
Ajay Kumar Garg Institute of Management, Ghaziabad, Uttar Pradesh.

Date: Signature

Place:Ghaziabad
………………………

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 ACKNOWLEDGEMENT

I owe my thanks to all the people who helped and supported us during writing this report. I
thank Dr VIDHI AGARWAL for guiding me and correcting my drafts with care. I am
highly obliged for her painstaking efforts and attention to detail. I would also thank my
Institution AKGIM, Ghaziabad for supporting me with the infrastructure without which this
report would have been a distant reality.

………………………

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Table of Contents
INTRODUCTION...............................................................................................................................6

Brief History........................................................................................................................................7

Structure of the Industry:...................................................................................................................7

REGULATION AND POLICY..........................................................................................................8

1. Export Promotion Council (GJEPC):....................................................................................8

2. Gem & Jewellery Trade Council of India (GJTCI):.............................................................8

3. The Bureau of Indian Standards:...........................................................................................9

Competitive Landscape.......................................................................................................................9

Industry forecast:-...............................................................................................................................9

Growth Drivers for the Indian Gems and Jewellery Industry.......................................................10

TOOLS USED FOR ANAYLYSIS...................................................................................................12

SWOT analysis of gems and jewellery industry..............................................................................12

Porter’s Five Forces:........................................................................................................................13

PESTEL Analysis:...........................................................................................................................15

CRITICAL ISSUES..........................................................................................................................18

Business trends:-................................................................................................................................19

EMERGING TECHNOLOGIES: -..................................................................................................20

Impact of a pandemic on industry performance: -..........................................................................21

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Conculsion:-........................................................................................Error! Bookmark not defined.

Reference:-.........................................................................................................................................22

INTRODUCTION
The gems and jewellery industry occupies an important position in the Indian Economy. It is
a leading foreign exchange earner, as well as one of the fastest-growing industries in the
country. The two major segments of the sector in India are gold jewellery and diamonds.
Gold jewellery forms around 80 percent of the Indian jewellery market, with the balance
comprising fabricated studded jewellery that includes diamond and Gemstone studded
jewellery. Besides, India is the world's largest cutting and Polishing Industry for diamonds,
well supported by government policies and the banking sector with around 50 banks
providing nearly $3 billion of credit to the Indian diamond industry.

A predominant portion of the gold jewellery manufactured in India is consumed in the

domestic market.

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However, a major portion of the rough, uncut diamonds processed in India is exported, either
in the form of polished diamonds or finished diamond jewellery. The largest consumer of
gold worldwide, India is also the leading diamond cutting nation.

Gold and precious gems have played a pivotal role in the Indian social fabric and economy.
Precious gems and jewellery are a part and parcel of Indian traditions and customs. Gold has
traditionally been valued in India as a savings-and investment vehicle and even today
continues to be the second most popular instrument after bank deposits. Gems and jewellery
are one of the fastest-growing sectors in the Indian economy with an annual growth rate of
approximately 15 percent. The gems and jewellery industry accounts for nearly 20 percent of
the total Indian exports and employs over 1.3 million people, directly or indirectly. The Gems
and Jewellery (G&J) market essentially comprises sourcing, processing, manufacturing, and
selling of precious metals and gemstones, such as Gold, Platinum, Silver, Diamond, Ruby,
Sapphire, etc. The G&J market is a significant contributor to the Indian economy, based on
the size of the domestic market and through its contribution to the country’s exports. India is
the largest consumer of gold (around 20 percent of global consumption) and also the largest

Brief History
Before the liberalization of the Indian economy in 1991, only the Minerals and Metals
Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to
import gold.

The abolition of the Gold Control Act in 1992, allowed large export houses to import gold
freely. Exporters in export processing zones were allowed to sell 10 percent of their products
in the domestic market. In 1993, gold and diamond mining was opened up for private
investors, and foreign investors were allowed to own half the equity in mining ventures. In
1997, overseas banks and bullion suppliers were also allowed to import gold into India. These
measures led to the entry of foreign players like DeBeers, Tiffany, and Cartier into the Indian
market. In the 1990s, the number of retail jewellery outlets in India increased greatly due to
the abolition of the Gold Control Act.

This led to a highly fragmented and unorganized jewellery market with an estimated 100,000
workshops supplying over 350,000 retailers, mostly family-owned, single-shop operations.

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In 2001, India had the highest demand for gold in the world; 855 tons were consumed a year,
95% of which was used for jewellery.

Structure of the Industry:

India’s G&J industry is highly unorganized and fragmented with 96 percent of the total
players being family-owned businesses. The gold processing industry has around 15,000
players, with only 80 having revenues over USD 5 million. India is also home to around
450,000 goldsmiths,100,000 gold jewellers 6,000 diamond processing players, and 8,000
diamond jewellers. The value chain of the industry starts from sourcing and mining of the
metals and extends to jewellery retail. While India is not a major miner of precious metals
and stones, the country’s inexpensive and well-skilled workforce makes it a world leader in
the processing of diamonds. The country’s jewellery retail sector is also expected to evolve
with a shift among consumers towards branded jewellery, driven by greater quality
consciousness. 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 handmade. The
industry is dominated by family jewellers, who constitute nearly 96 percent of the market.
The country at present has a small but growing organized sector. Organized players such as
Tata with its Tanishq brand, have, however, been growing steadily to carve a 4 percent
market share. India was the first country to introduce diamonds to the world, the first to mine,
cut, and polish them as well as trade them. The cutting and polishing of diamonds and other
precious stones are one of the oldest traditions in India and the country has earned a
considerable reputation both in the domestic and international markets for its skills and
creativity. In the global diamond market today, Indian diamonds account for 55 percent share
in value terms, 80 percent share in caratage (weight) terms, and 90 percent share in volume
terms. Today there is the ready availability of an entire range of diamonds in nearly every
size, quality, and cut. India offers the twin advantages of skilled labor and low cost in the area
of gemstone processing. India's significance in the global gems and jewellery industry can be
largely attributed to its strength in diamond processing. The export industry mainly comprises
small-to-large units based in various special economic zones (SEZs), export processing zones
(EPZs),d Electronics Exports Processing Zone (SEEPZ).

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REGULATION AND POLICY
Regulation and policy regarding gems and jewellery industry Gems & Jewellery:-

1. Export Promotion Council (GJEPC): Established in 1966, the GJEPC is the apex body
of the Indian gems and jewellery industry, and has around 6,500 members across India. The
primary goal of the Council is to introduce Indian gems and jewellery to the international
market and to promote their exports. The Council provides market information to its
members regarding foreign trade inquiries, trade and tariff regulations, rates of import duties,
and information about jewellery fairs and exhibitions.

2. Gem & Jewellery Trade Council of India (GJTCI): The GJTCI was founded in 2000,
and is tasked with resolving any issue arising from trade in gems and jewellery. It plays an
important role in showcasing Indian gems and jewellery to the international as well as the
domestic market. Like the GJEPC, GJTCI also provides information to its members through a
monthly newsletter, and various educative and trade motivational events such as seminars,
workshops, exhibitions, festivals, etc.

3. The Bureau of Indian Standards: The Bureau of Indian Standards (BIS), the National
Standards Body of India, is a statutory body set up under the Bureau of Indian Standards Act,
1986, and is responsible for hallmarking gold jewellery in India. Deregulation of Gold in
India In the pre-liberalization period (before 1991), severe restrictions on the export and
import of gold from and into India were imposed. During that time only the State Bank of
India (SBI) and the Metals Trading Corporation of India (MMTC) were allowed to import
gold. The reasons for imposing these restrictions were: 20 To reduce demand for, as well as
the availability of gold To alter the savings preferences of the population in favor of
investments other than gold/silver To stop the smuggling of gold To conserve foreign
exchange resources To prevent the generation of or to unearth black money. It was thought
that since gold was one of the most obvious choices for keeping undeclared/ill-gotten income
and wealth, a policy to restrict the supply of gold would be effective in curbing black money.

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Competitive Landscape
Historically, the Indian gems and jewellery industry was fragmented, with customers
generally purchasing from family jewellers. However, the industry has undergone major
structural changes in the last few years with more jewellers moving up the value chain
towards a greater emphasis on branded jewellery. Some of the major players in the market
include; Tanishq, Malabar Gold & Diamonds, Joyalukkas, Kalyan Jewellers, Gitanjali, and
TBZ. However, Jewellery retailing is a highly untapped market in India and there is
substantial scope for new entrants.

Industry forecast:-
In the coming years, growth in the gems and jewellery sector would largely be contributed by
the development of large retailers/brands. Established brands are guiding the organized
market and are opening opportunities to grow. Increasing penetration of organized players
provides variety in terms of products and designs. Online sales are expected to account for 1–
2% of the fine jewellery segment by 2021–22. Also, the relaxation of restrictions on gold
import is likely to provide a fillip to the industry. The improvement in availability along with
the reintroduction of low-cost gold metal loans and likely stabilization of gold prices at lower
levels is expected to drive volume growth for jewellers over the short to medium term. The
demand for jewellery is expected to be significantly supported by the recent positive
developments in the industry.

Growth Drivers for the Indian Gems and Jewellery Industry

1. Favourable Government Initiatives & Policy

 The Government of India has made Hallmarking of gold mandatory to accurately

determine the proportionate content of precious metals in the ornaments.

 Gold Monetisation Scheme enables individuals to deposit gold with banks and earn
interest in return.

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  The import duty for gold & silver has been reduced from 12.5% to 7.5%. For
platinum & palladium duty has been reduced to 10% from 12.5% to lower the prices
of precious metals in the domestic market.

 GJEPC (Gems and Jewellery Export Promotion Council) has signed an MOU with
MIDC (Maharashtra Industrial Development Corporation) to build the country’s
largest jewellery park.

2. Growing Middle-Class Population

The middle-class population is the major driver of the Indian economy. According to
estimates, around 55% of the population is expected to join the middle class by 2025. As the
wealth of the middle-class increases, they acquire gold for consumption and also as an
investment.

3. Gemstones as Fashion Statement

In recent times, gemstones such as Diamond, Platinum, Ruby, etc are making a significant
contribution to the changing fashion trends, especially in the elite class and upper-middle-
class society to distinguish them from other people.

4. Increasing women workforce

The rising education level among women has increased the percentage of women workforce
in India giving them more financial power in purchasing decisions. Increasing income levels
of working couples and lifestyle changes have fuelled the demand for gems and jewellery.

5. Branded Jewellery:-

Jewellery companies more often introduce unique and distinctive designs to differentiate their
brands. Young customers who are generally brand conscious and emerging market consumers
for whom established brands inspire trust and a sense of upgraded lifestyle are driving the
branded jewellery segment.

(Source: - IKON Research Team)

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TOOLS USED FOR ANAYLYSIS

SWOT analysis of gems and jewellery industry

Strengths:

One million craftsmen are associated with it. their skills can be harnessed for designing and
making modern jewellery.

-Abundance of cheap and skilled labor in India.

- Excellent marketing network spread across the world.

- Supportive government industrial/ Exim policy.

Weaknesses:

High domestic interest rates compared to elsewhere

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- Small firms lacking technological/ export information expertise.

- Low productivity compared to labour in China, Thailand, and Srilanka. As the major raw
material requirements need to be imported, companies normally stock huge quantities of
inventory resulting in high inventory carrying costs.

Opportunities:

-new market in Europe and Latin America

- Growing demand in south Asian & far-east countries.

- Removal of gold control act.

Threats:

- China, Sri Lanka, and Thailand's entry into the small diamond segment

- Infrastructural bottlenecks, frequent changes in Exim policies, irregular supply of gold.

- Over-dependence on the single-channel supply chain. Decisions of De Beers and Argyle's

terms for renewing their supply contract

Porter’s Five Forces:

1. Rivalry among existing competitors

The gold and jewellery products in the Indian market are not very much differentiable. If we
consider the national players, everyone has access to similar resources and they produce
similar designs. From the consumer perspective, the brand doesn’t play a huge role as
everyone provides similar offerings. The switching cost of the consumer is insignificant.
Though gold is not perishable, the price of these metals is volatile, this adds pressure on the
companies to sell the inventories as soon as possible. Large scale stores have large setup
costs, they do spend heavily on advertising, which creates pressure on the retailers to boost
their sales. All this adds up to high competition among the existing players in the industry.
The incumbents try to differentiate themselves via quality assurances, exchange programs,
buyback guarantees, etc., big players are focusing on building brand equity through brand
ambassadors. All in all, there is high competition among the existing industry players. They
are trying to compete via lower price and higher quality models. Existing players are focusing

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on entering new customer segments which are traditionally ignored by the large-scale
Jewellery companies.

2. The threat of new entrants: -

The growth prospects of the jewellery markets are looking good. There are no restrictions on
new entrants. Also, the customer switching costs in this industry are insignificant. So, when
we consider independent retail stores, the threat of new entrants is low. When it comes to
large-scale retail stores, economies of scale come into the picture. Large players can have
agreements with the gold importers and suppliers. Often, they can hedge the price
fluctuations. This reduces the risk associated with the business significantly. The automated
facilities for jewellery fabrication help these companies in cutting down their costs
significantly. These companies have good visibility and their brand equity is rising steadily.
This will help the large-scale players in patronizing their brand and drive sales. The
government rules and regulations that govern the entry into this industry are really strict.
Also, the requirement of skilled manpower in this industry plays a crucial role in influencing
the decisions of players entering this industry. Overall, there are very low entry barriers for
small-scale retailers. The entry barriers are moderate to high if someone is planning to enter
the industry on a large scale.

3. The threat of substitutes: -

The most important substitutes to jewellery (gold and diamond) are artificial or imitation
jewellery, stone jewellery or bagasra jewellery, etc. But these substitutes cannot replace or
play down the importance of gold or diamond jewellery as such. This is because people
nowadays attach special value to jewellery made up of gold and diamond. It has become a
status symbol and people are willing to spend large sums of money for acquiring something
that reflects their position in society. Income levels are on the rise and the need to display
one’s financial well-being is high as ever and no substitute can meet this incumbent need.
Also, rising living standards influence much of the purchasing decisions of a consumer, and
buying substitute products does not often meet their standards. Gold jewellery also represents
good investment options for most people. This is because the price of gold is market
regulated and it increases with increasing demand. Other investing options like mutual funds,
stocks, real estate, etc are somewhat more volatile than gold, which offers higher long-term
returns. Overall, it can be safely concluded that the threat of substitutes for jewellery is quite
low.

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 4. Bargaining power of suppliers: -

The suppliers to the jewellery industry have low to moderate bargaining power. This is
although India, being a key national player in the industry, has lots of suppliers, both national
and international. Due to this, the bargaining power of suppliers should be low, but it is not.
Their power is greatly influenced not only by the different types of gems and jewels they
supply but also by their quality. The quality of raw materials, per se, is one of the utmost
important criteria that helps in establishing a company’s reputation in the industry. The
supplier has to be reliable, to command its position in the national as well as global market.
Also, the price does not play any role in strengthening the bargaining position of a supplier
because the rates are usually fixed and the value of orders is quite high.

5. Bargaining power of customers: -

The buyers in India are price-sensitive, especially when it comes to holding high-value assets
like gold or diamond. The price of gold is market regulated that is highly affected by supply-
demand. Also, the price of other gems and stones is fixed by the sellers and is (usually)
almost similar across different sellers. The fact that India has a high number of buyers (the
number increases manifold during weddings and festivals like Diwali, Dhanteras, etc.) almost
always ensures a steady demand for gold and diamond jewellery. All these factors contribute
to the low bargaining power of customers.

(SOURCE:- Pratham Desai, https://www.porteranalysis.com/porter-five-forces-analysis-

of-jewellery-industry/)

PESTEL Analysis:

1. Political Factors:

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Complete Foreign Direct Investment in the jewellery sector has enabled the entry of
international brands like DeBeers, Tiffany’s, etc. into the Indian market. Demonetization has
introduced increased transparency for buyers and jewellers as more people now purchase
using plastic money and online transactions which ensures that no illegal currency is parked
in the form of jewellery. The scope of the Gold Monetization scheme has been increased by
the Reserve Bank of India allowing more government bodies and charities to deposit gold.
India is the leading exporter of un-cut diamonds and jewellers can now export with regulated
proofs and certifications which increase their worth in the international market. Economic
Factors: The improvement in living standards and per capita income of Indian consumers has
resulted in the promotion of jewellery. The implementation of 3 percent GST on finished
gold, diamond, and silver jewellery has led to the promotion of the jewellery investment
trend. The Corporate Tax for micro, small and medium enterprises in the jewellery industry
was cut down to 25 percent. The past few Pay-Commissions have enabled the working
classes to invest more and the increased reliability of the jewellery sector has turned out to be
a favourite for them.

2. Social Factors:

When procurement of jewellery became a trend in India, everybody used to buy Gold items.
Gold was exchanged at weddings and other functions as it was considered a token of love and
good wishes. Gradually, the trend shifted towards Diamond and other stone jewellery. The
growing middle and upper classes now prefer wearing light Diamond jewellery. However,
heavy gold and gem jewellery is bought and exchanged at weddings and family functions.
Celebrities and movies play a major role in influencing the trends of consumer behavior
toward the purchase of jewellery. Other than for fashion purposes, people tend to buy
jewellery as a means of investment. Gold or diamond jewellery bought from certified
jewellers gains value over the years and can be exchanged for the latest jewellery or cash
later when the requirement arises.

3. Technological Factors:

The up up-gradations of technology have enabled the jewellery industry to provide better
designs more efficiently. Better equipment and machinery are now used for cutting and
polishing stones. The finishing of machine-cut jewellery is unmatchable and this allows the
jewellers to charge high Making Charges from buyers. These Making Charges are different
for all jewellers depending on how big the brand is and how finely made the jewellery is.

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Entry of technology has also reduced labour costs for jewellers as hand-made work has
reduced leading to lesser employment of goldsmiths. Technological advancement has
introduced machinery that can check the purity of stones and metals in any jewellery. This
enables the customers to return old jewellery get it melted and buy new jewellery. Jewellers
can now check the purity of returned jewellery that was bought from some other jeweler to
gauge the worth of the item.

4. Legal Factors:

The Gem and Jewellery Export Promotion Council of India plays an important role in
controlling the gem and jewellery trade in India. It facilitates the import and export of raw
stones and finished jewellery to its members. It is responsible for providing training and
information needed to play fairly in the jewellery business. The tariff rates for foreign
locations and rates of import duty are communicated by the Council. There are set standards
of jewellery that will be sold in the market and the jewellers have to abide by Hallmark and
Carat systems. Stringent laws regarding record keeping of sale of jewellery have been
introduced after the Demonetization of 2016 according to which the sale of jewellery worth
more than 50 thousand requires the jeweler to keep a copy of the Identification proof of the
buyer. The sale of jewellery worth more than 2 lakhs require the jeweler to keep a copy of the
PAN Card of the buyer and this is the upper limit for cash transactions for the sale of
jewellery.

5. Environmental factors: -

mining of Gold is extremely harmful to the environment due to the usage of chemicals in its
extraction. Arsenic, Lead, Mercury, petroleum by-products, acids, and cyanide are used in the
extraction of gold ores. In the process, the land of that region is turned upside-down, and the
soil along with these chemicals is washed into the rivers and other water bodies flowing in
that region. Although there are laws regarding the rehabilitation of areas mined after
extraction, this rule isn’t followed and is not properly enforced by concerned bodies. Mining
of Diamond is less harmful comparatively due to lesser usage of chemicals. The workers
involved in the process are exposed to extreme temperatures and washing and cutting
procedures that harm their Jewellery is made from metals and stones that are exhausted and
present in a limited amount of earth. Most of these valuables have already been mined by
mankind and the remaining are not sustainable enough to last all generations. Hence, the
concern of the non-replenishment of natural minerals looms over the jewellery industry.

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(Sources: - Adamkasi, https://freepestelanalysis.com/pestle-analysis-of-gems-and-jewellery/

CRITICAL ISSUES
1. Import Dependency

Raw materials play a major role in the gems and jewellery market. India imports almost 90%
of the raw materials, especially raw diamonds, and gold bars. As a result, the gems and
jewellery industry is vulnerable to any regulations that limit the diamond and gold supply.

2. Unorganized Nature

The gems and jewellery industry in India is highly fragmented and unorganized. The industry
is majorly dominated by small jewellery shops that are run by families for years. More
customers prefer these shops as price fluctuations make organized jewellers increase the price
of finished jewellery.

3. Trust and Transparency

The purchase of jewellery is an expensive transaction and is also considered a long-term

investment. Thus, Fair price, Trust & transparency becomes a major buying decision factor.

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Customer doubts and lack of knowledge on how to value the jewellery add to the buyer’s
discomfort.

Business trends: -
1. High Demand for Diamonds Owing to the Emerging Middle Class

The rising middle-income consumers in the developing country, coupled with the increased
purchasing power and the rising fashion trends, are boosting the demand for fine costume
jewellery across the region. Similar to the gold industry, the diamond industry has high
expectations for the demand for diamonds, primarily due to the huge emerging middle class
in Latin American countries. Sales have indeed increased dramatically in these regions. In
March 2021, exports of gems & jewellery stood at USD 3.42 billion. In the Final Year of
2021 (until October), India exported gems & jewellery worth USD 23.65 billion compared
with the USD 11.482 billion recorded in the final year of 2021 (until October).

2. Asia-Pacific is the Largest Market

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In Asia-Pacific, the gems and jewellery market is witnessing changes in consumer
preferences due to the adoption of the Western lifestyle. Consumers are demanding new
designs and varieties in jewellery, and branded jewellers can fulfil their changing demands
better than the local unorganized players. Moreover, an increase in per capita income has led
to an increase in sales of jewellery in countries like India where jewellery is considered a
status symbol. Luxury jewellery, especially gold jewellery, is witnessing an increase in
demand in the country. The strong performance of the real jewellery segment is expected to
drive the Asian jewellery market. Manufacturers of gems and jewellery in the region are
more focused on developing new and innovative designs to fulfil the changing needs and
demands of consumers by using advanced technologies, such as computer-aided design
(CAD) and rapid prototyping (RP), that play a vital role in incorporating 3D printing in
jewellery.

EMERGING TECHNOLOGIES: -
1. CAD technology: Computer-aided design is software used to create precise and accurate
illustrations of a particular piece of jewellery. CAD-aided engineering in India is used for
verifying 3D jewellery models and their accuracy.

2. Lasers: The functional utility of lasers allows diverse shapes to be engraved on the metal,
engraving identification numbers, and brand logos. Laser technology in India is used for
start-to-end processes, that is, from planning to polishing. This process aids in minimizing
wastage and scanning impurities.

3. 3D Printing: it enables the designers to create complex designs with this sophisticated
piece of technology. However, the use of 3D printing is still progressing and refined research
and development in this field will result in wide sector commercial use at an affordable price.
With the help of 3d printing, many of India’s jewellers and merchants derived time-saving
value and improved efficiency.

4. Detection and mapping technologies: The combination helps in detecting small

diamonds, possessing a size less than a carat. Technological mapping of gems and jewellery

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enables value chain analysis and export competitiveness of India’s precious stones
manufacturers and aids them in initiating new trends in the international market.

5. Augmented reality and artificial intelligence: augmented reality has grown to be

instrumental in brands staying connected with customers. This particular technology allows
customers to virtually try on a piece of jewellery creating a unique sensory experience.
Artificial intelligence creates a reliable way of designing jewellery. AI proves useful in
detecting the shapes and colors of gemstones. And since India’s after pandemic scenes in the
jewellery market has witnessed an obvious improvement due to this unique technology
implementation.

Impact of a pandemic on industry performance: -

The Pandemic has left everyone affected globally one way or the other.  It has caused huge
disruptions in terms of economic activity as well as the loss of human lives. Nationwide
shutdowns, and economic slowdown have impacted various industries. Gems &
jewellery is one of those many industries that have suffered majorly due to it as domestic
demand and exports sharply crashed. One wave after the other is not letting this industry
recover properly.

Festive season last year gave hope to the jewellery industry as things started getting back on
track for them and a jump in sales was observed. However, another Covid wave during the
wedding season made it again a bit challenging. It is the leaders of the Gems &
Jewellery industry who are all set for this year with a calm & strategic mind as well as
high spirits.

Like many industries, the jewellery industry too has been hit hard owing to a long list of
cancelled or postponed events, shows, exhibitions, and weddings for the next few months.

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Major jewellery brands had anticipated 2020 to be a doorway to a plethora of business
opportunities. The production, supply, and export were aligned to meet the desired goals
towards the end of the year. 

However, coronavirus was a big factor that turned the smooth operations upside down.  As
businesses lost their profitability, the managements of key players duly intervened to firefight
the crisis.

Conclusion: -
The Indian Gems and Jewellery industry is at a very significant point of its development. The increase
in purchasing power of people has resulted in remarkable growth in the consumption of Gems and
Jewellery worldwide. Moreover, the significant appreciation in the prices of Gems and Jewellery in
the recent years makes them a very rewarding option of investment and wealth accumulation.

India has been increasingly accorded the status of a world trading hub for Gems and Jewellery. To
build a Brand India, the industry has to renovate itself in accordance to the changed lifestyles and
changing expenditure patterns through refurbished products, outlooks and business practices. The
socio-economic conditions are conducive for the same as the economy as well as the population of the
country has realized the significance and potential of this sector in bringing about the much needed
economic impetus.

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Reference:-
https://www.ibef.org/industry/gems-jewellery-india

https://freepestelanalysis.com/pestle-analysis-of-gems-and-jewellery/

https://www.marketintellix.com/report/global-gems-and-jewellery-market-169484

https://www.ikonmarket.com/market-insights/gems-jewellery-industry-india.html

https://www.porteranalysis.com/porter-five-forces-analysis-of-jewellery-industry/

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