According to industry body, the Federation of Indian Chamber of Commerce and Industry (FICCI) the gems and jewellery export industry is set to double in the next seven years, said a business consulting and research firm Cygnus in a report. It also mentioned that by 2015, the industry is expected to rise to $37bn. The increase will be caused by a multi-pronged approach like transformation of the sector from family-owned to a professionally-managed business, innovation in design, focus on new markets and use of advanced technologies.
Indian jewellery sector is well supported by government policies and the banking sector, with around 50 banks providing about $3bn credit to the Indian diamond industry, it said. In addition, the country is expected to have a diamond bourse soon.
Currently, India is the world’s largest diamond processing (cutting and polishing) country with around 1mn processors treating over 57% of the world’s rough diamonds by worth. In terms of carat, India's contribution in this sector is about 80% of the global market. Employing over 90% of the global diamond industry workforce, the country also accounts for about 90% of the volume of diamonds processed in the world.
According to Cygnus estimates, the gems and jewellery industry is expected to witness a strong growth of 14% in net sales and by 50% in terms of operating profit during April-June 2008 compared with corresponding quarter of the previous year.