Dun & Bradstreet India is pleased to present to you a report titled the ‘Indian Gems and Jewellery Sector’ under the ‘D&B Sectoral Round Table Conferences’ series. The publication provides an overview on the current trends and future prospects of the Indian Gems and Jewellery Sector.

India has emerged as one of the fastest growing economies in the world after having recorded an annual average growth rate of 8% during the last 4 years. The gems and jewellery sector has been one of the fastest-growing sectors in India in the past few years. The sector is highly export-oriented, labour-intensive and a major contributor to the foreign exchange earnings; therefore, the Indian government has declared the sector as a thrust area for export promotion.

India is the largest consumer of gold and accounts for over 20% of the total world gold consumption. India is also one of the largest diamond processor in the world and its artisans have specialised skills in processing small diamonds (below one carat); in fact, the Indian craftsmen have achieved excellence in cutting and polishing small diamonds.

The global economic slowdown has hit the Indian gems and jewellery sector hard. As the sector was primarily dependent on exports to the US and European countries, the meltdown in these countries affected the gems and jewellery sector to a great extent. The players faced issues relating to inventory build-up and liquidity pressure. However, on account of global recovery, the sector is also on a recovery mode. The players received good orders for Christmas in 2009, which indicates a gradual recovery for the sector. The positive trend is expected to continue, as major economies are showing signs of recovery, which is resulting in fresh orders for the sector.

The publication ‘Indian Gems and Jewellery Sector’ is an endeavor to highlight the current status as well as the issues and challenges that exist in the gems and jewellery sector. I hope you enjoy reading this publication and look forward to receiving your suggestions.

Dr Manoj Vaish
President & CEO - India
Dun & Bradstreet