It gives me great pleasure to launch Dun and Bradstreet (D&B) India’s publication ‘Indian Gems and Jewellery Sector’ that brings to the fore the current status of this industry. With D&B’s global footprint and market reach this publication is certain to draw the attention of global industry leaders and policy makers.

The rapid growth of the Indian economy has garnered interest across the globe, and India has emerged as a favourable investment destination in the last few years. India has been one of the fastest growing economies during FY09, despite witnessing a moderation in growth due to the ripple effects of the global financial crisis. In FY09, the country’s GDP is estimated to have grown by 6.7% as against a growth of 9.01% in the previous year. While the economic conditions have witnessed some improvement in the last few months, the GDP growth is expected to remain at a modest level during FY10 given the adverse impact of deficient monsoon on the agriculture sector.

India has emerged as the most popular market for the global gems & jewellery sector in the recent years. India is also the largest consumer of gold accounting for over 20% of the world gold consumption during 2009. In spite of the fact that the sector is highly dependent on imports for its raw materials, India is a major exporter of gems and jewellery due to its inherent strength in craftsmanship, superiority in cutting and polishing of fine diamonds and precious stones and its cost effectiveness. Thus, this sector is a significant contributor to India’s foreign exchange earnings.

The sector has received continued policy incentives over the years including the removal of the barriers of trade. Yet, the fragmented and unorganised nature of the sector has created several bottlenecks. Nonetheless, more organised players have been entering the sector over the last few years. The changing lifestyle and rapid development of modern retail spaces and development in the tier II and tier III cities holds potential to drive the future growth of the organised players in the sector. Increased emphasis on branding and marketing initiatives and exploration of e-commerce opportunities would enable the players in this sector to acquire new markets domestically as well as make a mark globally.

David J. Emery
President Asia Pacific & Senior Vice President of the Corporation
Dun & Bradstreet