Date : 26 Jan 2022
India can Emerge as the Largest Diamond Trading HubTags :
Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.
Why in News?
- With $28.9 Billion worth of Gems and Jewellery exports already achieved during the first three quarters of the current Financial Year, it has already surpassed $26.02 Bn exports registered during the last FY (April, 2020-March, 2021) and is likely to better the previous high of $35.89 Bn scaled during the FY (April, 2019-March, 2020).
- The Gems and Jewellery sector makes up 9.6% share of India’s entire exports basket during the period (Apr-Dec, 2021), accounting for the third largest commodity share (Engineering first and Petroleum Products second).
- Top 5 export destinations in April-November 2021 (latest available, share% in bracket) are: U S A (38.7%), Hong Kong (24.6%), UAE (11.9%), Belgium (6.6%) & Israel (3.9%).
- Gems and Jewellery industry contributes about 7% of India’s total GDP & employs the largest skilled and semi-skilled workforce of more than 50 lakh workers.
- More than 450 organised jewellery manufacturers, importers & exporters are based in Surat city of Gujarat, making it the jewellery manufacturing hub of the world.
- It may be noted that the Government has declared the Gems & Jewellery sector as a focus area for export promotion.
- Government has taken various measures to promote investment for growth of the sector -
- Revamped Gold Monetisation Scheme,
- Reduction in import duty of gold and
- mandatory hallmarking.
- Various schemes that are working as a catalyst for the sector are Common Production/Processing Centre, Design Centers, Testing Facilities including Plug & Play Facilities, where assistance of 90% is being given by the Government of India. Marketing Hubs / Exhibition Centres by Associations are receiving GoI Assistance of upto 80% of project cost.
- Centre has laid out four points to make India’s Gems & Jewellery a pioneer industry in the world:
- Focus on Design (creation of patented designs) in order to increase value add of our products and make our manufacturing more profitable.
- Diversification of export products: Emphasis on products like pearls, silver, platinum, synthetic stones, artificial diamonds, fashion jewellery, non-gold jeweller, etc.
- Collaboration with other nations for cost-effective methods to enhance production of fusion jewellery, and
- Promote Lab-Grown Diamond: They are environment friendly & affordable and will contribute to India’s export as well as generate employment.