The India gems and jewellery (GJ) has been an intrinsic part of the Indian civilization since ages. It is known for both its aesthetic as well as investment purposes. Precious metals and stones have been an integral part of the Indian civilization since its recorded history. India has the distinction of being the first country to introduce diamonds to the world. The country was also the first to mine, cut and polish and trade in diamonds.

The GJ industry can be classified into various sub segments like diamonds, colored stones, gold and silver jewellery, pearls, etc. However, the two major segments in India are gold and diamonds. India dominates the diamond processing trade with 11 out of 12 diamonds being cut and polished in India. India also dominates the gold and silver consumption globally with consumption of about 800 tonnes p.a. The industry holds prominent significance as it is a net exporter and provides employment to 1.3 mn people directly and indirectly.

The industry is characterized by the highly unorganized trade, labor-intensive operations, working capital and raw material intensiveness, price volatility of gold especially and export orientation. Demand for gold and diamond jewellery is driven by festivals and wedding, increasing affluent and middle class population, increase in per capita spend on luxury items, etc.

India plays a leading role in the GJ industry in terms of processing and consumption, mining of gold and diamond is amongst the lowest in the world. India imports gold (it is the highest consumer of gold in the world) and rough diamonds along with other precious metals. India’s Gold is purchased from countries like Switzerland, South Africa, Australia and the UAE, etc and rough diamonds are sourced from Belgium, UK, Israel and the UAE among other countries.