CHENNAI, Jan 9: Adopting a cluster-focussed approach for addressing gaps in policy, infrastructure, technology, and finance can help propel India’s gems and jewellery exports to USD 75 billion by 2030, according to a joint study by the Export-Import Bank of India (Exim Bank) and the Gems and Jewellery Export Promotion Council (GJEPC).
This first-of-its-kind study in the gems and jewellery sector, titled ‘Making Gems and Jewellery Clusters Exportable’ identifies and benchmarks 17 district-level clusters with high potential for exports.
Among these clusters, Mumbai Suburban emerged as the top-performing cluster, while Surat, Mumbai, Kolkata, and Jaipur were identified as front-runners.
As per the study, India has an unrealised export potential of $ 38 billion in the gems and jewellery sector. To tap this opportunity, the study recommends diversifying into high-value-added product segments such as diamond?studded jewellery, lightweight gold jewellery, luxury smart jewellery, imitation jewellery, synthetic gemstones, astrology-inspired designs, and cultured pearls.
The study also suggests market diversification, particularly in emerging economies such as Vietnam, Singapore, Thailand, Botswana, Russia, and Sri Lanka, as well as in developed markets such as Singapore and the European Union.
To bolster the policy support, the study recommends extending state?level incentives such as capital subsidies, SGST reimbursements, and streamlined clearances. Further, a design?led incentive scheme could be introduced to foster innovation.
Enhancing infrastructure also emerges as a key priority in the study, with recommendations to adopt a hub?and?spoke approach for Common Facility Centres, strengthen SEZs in Cochin and Chennai, and expand SEZs in Surat and Jaipur.
The study further emphasises the need for improved international flight connectivity in manufacturing clusters such as Agra and Thrissur.
The study also identifies customs-related challenges – including limited airside access for custodians in Jaipur, inadequate appraisal facilities in Ahmedabad and Rajkot, and a lack of risk?based sampling- and underscores the need to address these bottlenecks to enhance exports.
For branding and marketing, the study suggests leveraging the sector’s existing Geographical Indication (GI) tags while pursuing new GI registrations for promising products. The study also recommends boosting e-commerce exports through dedicated logistics hubs and simplified return mechanisms.
To bridge technology gaps, the study proposes the creation of a dedicated Technology Upgradation Fund and stronger industry-academia partnerships to enhance R&D. For addressing the sector’s significant skill gap, the Study calls for establishing recognised training centres, promoting apprenticeship opportunities, and developing a digital skill registry for artisans to address demand-supply constraints.
The study also outlines strategies for improving access to raw materials by designating more banks to supply duty?free gold in smaller denominations and by easing customs procedures for coloured gemstones. Moreover, to enhance financial access, particularly for MSMEs, it recommends greater awareness of financial products, including export factoring and supply chain finance solutions.
Speaking on the occasion, Harsha Bangari, Managing Director, Exim Bank, underscored the role of the gems and jewellery sector in India’s economic output, exports and employment.
Bangari highlighted the collaborative efforts of Exim Bank and GJEPC in conducting an in-depth assessment of the gems and jewellery sector at the cluster-level. She also noted that the study would serve as a valuable reference for guiding policymakers, industry stakeholders, and academic institutions towards strengthening India’s position in gems and jewellery exports. (UNI)
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