ASHUCHAYA MEHARE 07 LAKSHMI S 19 MURALI 27 RAGHAV REDDY 35 RESHMA TABASSUM 38 VISHNU DEEPIKA 59

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INDUSTRY OVERVIEW MARKET DRIVERS & CHALLENGES TRENDS FOR EXPORT AND IMPORT GOVT POLICIES & INITIATIVES

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Largely unorganized at present with a small but growing organized sector. Ranks No. . Leads in diamond cutting and polishing in the world after USA and Japan.` ` ` ` ` One of the leading players in the global gems and jewellery market.1 in the consumption of gold all over the world. Competitive in the world market due to its low cost of production and availability of skilled labor.

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the largest consumer and importer of gold in the world.` India. is projected to import around 500-550 tonnes of gold in 2010. on the back of improving lifestyle and availability of skilled labour. as per AnjaniSinha. head of the Indian Bullion Market Association (IBMA). ` . The Indian gems and jewellery market is set to cross US$ 26 billion by 2012.

` . The Gem and Jewellery Export Promotion Council (GJEPC) predicts that the gems and jewellery exports would witness a rise of around 5 per cent year-on-year during FY11.` As per the credit rating agency Crisil. the diamond industry in India is predicted to remain stable during 2010-11 due to improved prices and steady demand.

. as per a McKinsey report. the future of organised retail in India is very bright.2 billion by 2010 on the back of quality consciousness among target consumers. the market is highly dominated by the unorganised players. with increase in consumer income and economic prosperity.` Although. The braded jewellery sector is estimated to reach US$ 2.

the jewellery mall developer. ` .` In its bid to enhance the market strategy.1 million is being planned to be set up by Gold Souk. 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. a gems and jewellery special economic zone (SEZ) sprawling over 40 acres with an investment of US$ 441.

the undisputed singlelargest Gold bullion consumer. MMTC Ltd .the country's top gold importer. It has been until now. According to SanjivBatra. Gold imports stood at 739 tonnes during April 2009-March 2010. . Chairman and Managing Director.` ` India is one of the largest bullion markets in the world. stated that the company is likely to import 200 tonnes of the precious metal in the current fiscal year.

India stood at 11th position with 557. . ` India is the largest consumer of gold jewellery in the world. accounting for about 20 per cent of global gold consumption. as per the World Gold Council.` In the world official gold holdings ratings.7 tonnes of gold reserve as of June 2010.

Surat is India's diamond processing hub. India is the world's largest diamond cutting and polishing centre in the world.` ` ` India is the world's largest diamond cutting and polishing centre in the world. It accounts for 60 per cent value share. .It is the third largest consumer of polished diamonds after the US and Japan. contributing over 80 per cent of the country's diamond processing industry with annual revenue of around US$ 13. 82 per cent by carats and 95 per cent share of the world market by number of pieces.03 billion.

Bangalore Suashish Diamond J.Ultimo Vaibhav Gems.` ` ` ` ` ` ` ` ` ` Gitanjali Group Shrenuj & Company Suraj Diamonds and Jewellery Limited Rajesh Exports Asian Star Titan Industries (Tanishq into Retail). Jaipur .B Brothers Tara .

DRIVERS CHALLENGES MASS APPEAL & GROWING INCOME AMONG THE HOUSEHOLDS. LOW COST & ABUNDANCE OF SKLLED LABOUR GROWING USE OF HIGH END TECHNOLOGY ADVANTAGES OF SEZs CHANGING CONSUMER PERCEPTIONS & PREFERENCES RISING GOLD PRICES COMPETITION FROM UNORGANISED PLAYERS DEPENDENDS ON RAW MATERIAL IMPORT EMERGING THREAT FROM OTHER COUNTRIES. .

700 crore . During April-August 2009 India had registered exports of gems and jewels worth about Rs 45.` ` Over 53 per cent increase in total exports of gems and jewels this year during April-August at Rs 70.113 crore.

.` ` ` ` India is the largest diamond cutting and polishing centre in the world 60 % value share 82 % carat share 95 % share of the world market in terms of number of pieces.

24 billion. according to a McKinsey report. which is currently worth US$ 23. The All India Gem and Jewellery Trade Federation is targeting for 2013 a 50 per cent growth in the retail turnover of the domestic jewellery industry. .` ` ` The Indian gems and jewellery market continues to be dominated by the unorganized sector Branded jewellery is likely to be worth US$ 2.2 billion by 2010.

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` ` ` The export of Gems and Jewelry during 2009-10 (April-September) decreased to US $ 13608. Pearls.1 million during the corresponding period of the previous year registering a negative growth of 48.0 per cent .7 per cent.1 million from US $ 10430.4 million from US $ 17387.7million during the corresponding period of last year showing a negative growth of 21. Precious and Semi-Precious Stones Import of Pearls and Precious and SemiPrecious Stones during 2009-10 (AprilSeptember) decreased to US $ 5430.

gem and jewellery exports from India registered a huge 18.680 billion.244 billion Gold jewellery.23% growth Contributes 13 per cent to India's total merchandise exports India¶s share of the world's polished diamond market is 61. stands second accounting for 32.97 % Exports of cut & polished diamonds for FY 2009-10 stood at USD 18.88% of total exports .69 % and at USD 9.` ` ` ` ` In the financial year ended March 2010. which offers tremendous growth potential achieved an increase of 10.

It is the third largest consumer of polished diamonds after the US and Japan .` ` ` Total net imports of gems and jewellery touched US$ 81.43 billion posed in the corresponding period in the previous year.08 billion as compared to US$ 56. accounting for about 20 per cent of global gold consumption. India is the largest consumer of gold jewellery in the world.

70000 60000 50000 40000 30000 20000 10000 0 Diamonds Gold Coloured Rough Gems Diamonds Others 2009-10 2009-08 2008-07 2007-06 2006-05 .

4% 3% 9% Sales 26% 20% 10% 2% 9% 16% Other Countries Belgium China Israel Italy India South Africa Switzerland Thailand .

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` ` ` ` ` Availability of skilled manpower largest resource pool India also has a good blend of technically trained designers In terms of cost Low cost skilled labour .

US$ million 150 100 50 0 INDIA BELGIUM ISRAEL 10 17 150 100 US$ million CHINA .

--Industry moving from a phase of consolidation --China. absence of latest technology --Unusual increase in the prices of gold and rough diamonds . --Supportive industrial/ EXIM policy WEAKNESS --Small firms lacking technological/ export information expertise. Thailand and Sri Lanka. -. Their skills can be utilized for designing and making modern Jewellery --Availability of abundance of cheap and skilled labor in India. --Rupee value depreciating resulting in a windfall increase in the profitability. ·--As the major raw material requirements need to be imported.STRENGTH --About one million craftsmen are associated with this industry. THREAT OPPORTUNITY --New markets in Europe & Latin America --Growing demand in South Asian & Far East countries. companies normally stock huge quantities of inventory resulting high inventory carrying costs. Sri Lanka and Thailand's entry in small diamond segment --Infrastructure bottlenecks.Low productivity compared to labor in china.

publicity and participation in international fairs. Promotion of Indian diamonds and jewellery abroad through advertisements. Promotion of export of 'hallmark' jewellery from India to assure foreign customers of quality and purity of jewellery made in India. buyer-seller meets and direct approach to market retailers.` ` ` ` Exploring the possibility of direct procurement of rough diamonds from mining countries. . Market study through experts in the field to identify new markets.

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