Diamond, Gold Ornaments


FDI Inflows to Diamond Gold Ornaments

The FDI Inflows to Diamonds, Gold Ornaments has led to the development of the organized Gems & Jewelry Industry. A number of foreign players have entered the Indian jewelry market in the past few years. The sector has huge opportunities in the future.

FDI to Diamonds, Gold Ornaments-Overview


The FDI to Diamonds, Gold Ornaments has been influencing the growth of the organized Gems & Jewelry Industry. This industry is the one of the most rapidly growing industries in India. The increase in the purchasing power of the middle class is one of the main growth drivers of this industry. The rate of growth in the consumption of gems and jewelry was 11 % in 2006-07.

Gems & Jewelry Industry-Global Players

 

  • Swarovski, the international crystal jewelry and souvenir manufacturer has been setting up centers in India and the company expects that around 10% of the global turnover would come from India.
  • The internationally famed Damas, with the largest jewelry retail outlets in the world is expected to set up16 new stores in India.
  • US based gemological grading and research laboratory, Gemology Headquarters International (GHI), has set up their first branch at Opera House, Mumbai
  • UBS Securities and Goldman Sachs holds 6.28 % share in Shrenuj & Co.
  • 7 % shares of the Gitanjali Gems, was acquired by Citigroup, Morgan Stanley, BSMA Ltd, and Goldman Sachs jointly.

FDI to Diamonds, Gold Ornaments-Government Initiatives

 

  • The Central Government has introduced a New Annual Supplement to Foreign Trade Policy (2004-2009).
  • The Service Tax on exports has been exempted.
  • Re-import of Diamonds and Gold exported is allowed.
  • The duty free export of rhodium plated silver jewelry is increased to 3 %.
  • The duty free import of tools, equipments, and machineries, used in the manufacturing of jewelry are allowed.
  • In case of metals such as gold, platinum, it would be 1 % and for other metals it would be 2 % of the value of exports in the previous financial year.
  • The Government has made it compulsory to hallmark gold.
  • The import of polished diamonds has been made duty free.
The Central Government has declared SEZ exclusively in Kolkata, Goregaon, Dhulia and Hyderabad for the purpose of jewelry production and export
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