A study has revealed that India has an unrealised export potential of USD 38 billion in the gems and jewellery sector
Adopting a cluster-focussed approach for addressing gaps in policy, infrastructure, technology, and finance can help propel India’s gems and jewellery exports to USd 75 billion by 2030, as per a joint study by the Export-Import Bank of India (Exim Bank) and the Gems and Jewellery Export Promotion Council (GJEPC).
The study, titled ‘making gems and jewellery clusters exportable’, identifies and benchmarks 17 district-level clusters with high potential for exports. Among these clusters, Mumbai Suburban emerged as the top-performing cluster, while Surat, Mumbai, Kolkata, and Jaipur were identified as frontrunners.
India has an unrealised export potential of USD 38 billion in the gems and jewellery sector. To tap this opportunity, the study recommends diversifying into high value-added product segments such as diamond studded jewellery, lightweight gold jewellery, luxury smart jewellery, imitation jewellery, synthetic gemstones, astrology-inspired designs and cultured pearls.
To bolster the policy support, the study recommends extending state level incentives such as capital subsidies and streamlined clearances. Further, design led incentive scheme could be introduced to foster innovation. Enhancing infrastructure also emerges as a key priority in the study, with recommendations to adopt a hub and spoke approach for common facility centres, strengthen special economic zones (SEZs) in Cochin and Chennai, and expand SEZs in Surat and Jaipur.
The study further emphasises the need for improved international flight connectivity in manufacturing clusters such as Agra and Thrissur. The study also outlines strategies for improving access to raw materials by designating more banks to supply duty free gold in smaller denominations and by easing customs procedures for coloured gemstones.
Moreover, to enhance financial access, particularly for micro, small and medium enterprises (MSMEs), it recommends greater awareness of financial products, including export factoring and supply chain finance solution. The study identifies customs-related challenges, including limited airside access for custodians in Jaipur, inadequate appraisal facilities in Ahmedabad and Rajkot and lack of risk based sampling and underscores the need to address these bottlenecks to enhance exports.
