Adopting a cluster-focused strategy could elevate India’s gems and jewellery exports to $75 billion by 2030, a recent report suggests. The Export-Import Bank of India (Exim Bank) and the Gems and Jewellery Export Promotion Council (GJEPC) jointly conducted a study that pinpointed 17 district-level clusters with significant export potential. Notably, Mumbai Suburban stood out as the top-performing cluster, with Surat, Mumbai, Kolkata, and Jaipur also showing promise.
The study highlights that India currently has an untapped export potential of $38 billion in the gems and jewellery sector. Harsha Bangari, the Managing Director of Exim Bank, emphasized the sector’s crucial role in India’s economic growth, exports, and job creation. She commended the collaborative efforts of Exim Bank and GJEPC in conducting a thorough evaluation of the sector at the cluster level.
To capitalize on this opportunity, the study recommends diversifying into high-value product segments like diamond-studded jewellery, lightweight gold jewellery, luxury smart jewellery, imitation jewellery, synthetic gemstones, astrology-inspired designs, and cultured pearls. It also suggests expanding market reach, especially in emerging economies such as Vietnam, Singapore, Thailand, Botswana, Russia, and Sri Lanka, along with developed markets like Singapore and the European Union.
The study proposes enhancing policy support by extending state-level incentives such as capital subsidies, SGST reimbursements, and simplified clearances. Additionally, it suggests introducing a design-led incentive scheme to foster innovation. Infrastructure development is also crucial, with suggestions to adopt a hub-and-spoke approach for Common Facility Centres, strengthen SEZs in Cochin and Chennai, and expand SEZs in Surat and Jaipur.
Identified customs-related challenges, such as limited airside access for custodians in Jaipur, inadequate appraisal facilities in Ahmedabad and Rajkot, and the absence of risk-based sampling, need to be addressed to facilitate exports and overcome bottlenecks.
