Indian Gems & Jewellery Conquer New Horizons
Expanding into non-traditional markets is often fuelled by the discovery of untapped potential. GJEPC has been instrumental in this process, spearheading multi-pronged initiatives to help Indian exporters better understand the needs of these emerging regions. This groundwork has paid off, with exports to these new areas showing significant growth in the first four months of FY 2024-25.
The Gem & Jewellery Export Promotion Council (GJEPC) has been making notable strides to diversify and grow India’s gem and jewellery exports, particularly targeting new and emerging markets. Recent data reveals a positive trend in these efforts, showcasing substantial growth in various regions beyond the traditional strongholds like the US and China that have faced challenges due to various economic factors.
Despite these challenges, the GJEPC has remained focused on exploring greener pastures. The Council’s approach involves identifying and promoting market-specific product categories. Moreover, GJEPC’s promotion strategy is data-driven, involving deep dives into export data to understand which markets and product categories are showing the most promise.
Working closely with the Government of India on foreign trade policy like the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and the India-Australia Economic Cooperation and Trade Agreement (ECTA), GJEPC has simultaneously been actively working to penetrate new markets through targeted initiatives like organising market expeditions in Latin America, road shows in Southeast Asia & Middle East, Buyer-Seller Meets and larger export-focused exhibitions like International Gem & Jewellery Show (IGJS) Dubai and Jaipur, and the India Jewellery Exposition Centre (IJEX) in Dubai throughout the year to promote Indian gems and jewellery.
Vipul Shah, Chairman, GJEPC, said, “As we venture into new territories, the labour-intensive nature of studded jewellery production has played a crucial role in meeting the sophisticated demands of a discerning global clientele. At GJEPC, we are proud to have facilitated this growth through targeted initiatives that promote our artisans’ unmatched ability to create intricate, high-quality pieces. This not only enhances India’s export capabilities but also elevates the reputation of Indian jewellery craftsmanship in international markets.”
The effort is paying off, with exports in several new regions beginning to show upward trends. For instance, the exports of Plain Gold Jewellery have seen an impressive year-on-year increase from April to July 2024 in new, promising markets such as Malaysia (+35.77%), Australia (+75.86%), Canada (+30.65%), France (+102.89%) and Oman (+207.46%). Additionally, there are emerging opportunities in the Middle East, with countries like Saudi Arabia (+26.05%) and Kuwait (+87.99%) showing a rising demand for Studded Gold Jewellery. These markets are relatively under-explored and represent a significant opportunity for Indian exporters.
Saudi Arabia, Kuwait, Bahrain, and Malaysia, in particular, have witnessed increasing exports due to the growing number of buyers from these countries attending the three India International Jewellery Show (IIJS) events – Premiere, Signature and Tritiya – in recent times. The product profile of Indian jewellery is well-suited to the specific requirements of these markets, contributing to the growth in exports.
The emergence of Thailand (+57.41%), Spain (+78.73%), Italy (+26.85%) and Australia (+20%) among the top 10 markets for Silver Jewellery Exports also reflects the success of GJEPC’s initiatives, which have been bolstered by trade-friendly policy.
Konal Doshi, Partner at Modern Impex, an award-winning exporter of plain gold jewellery with a growing presence in new markets such as Malaysia, Australia, Canada, France and Oman, says, “The India-Australia ECTA, has streamlined our export process, allowing goods to flow directly to Australian buyers. In the Middle East, too, we are seeing a significant increase in direct purchases from India, compared to the previous preference for Dubai due to its easier business environment. However, with the India-UAE CEPA, Indian goods are now more cost-effective as they can be imported duty-free in their country. Earlier, factors like government systems, minimum quantity requirements for gold, and design availability were deterrents. However, with India’s more proactive export policies and the growth of larger exhibitions, buyers are finding it more advantageous to deal directly with Indian manufacturers. India is an emerging growth economy, and the diversity of products offered by our manufacturers have also contributed to this trend. In addition, the recent 9% import duty cut on gold has made our products even more competitive. Although we still export on basis of international pricing, our cost of manufacturing is linked to manufacturing loss incurred in domestic prices. The recent duty cut has straight away reduced this loss by 9% making Indian jewellery manufacturers and exporters highly competitive on the international stage.”
The GJEPC’s efforts to expand into new markets not only benefits the trade but also bolsters India’s reputation as a leading player in the global jewellery industry.
Entering newer markets requires in-depth study of consumer jewellery-buying patterns, followed by the development of niche product lines tailored to a specific audience.
Anju Jain, Partner, Exquisite Fine Jewellery, Jaipur, reveals, “Our decision to enter newer, non-traditional markets was motivated by the vast, untapped potential we observed during our travels. We noticed a significant lack of awareness about Indian artistry, particularly in the Gulf, where cultural similarities and shared aesthetics with Indian designs—especially those with Arabesque elements—offered a unique opportunity. The region, known for its high concentration of high-net-worth individuals (HNIs) and some of the largest per capita income groups, possess immense spending power and a strong affinity for high jewellery. While high-end gemstone jewellery in the region had traditionally been dominated by uber-luxury brands like Van Cleef and Bulgari, we saw an opportunity to fill a niche by making luxury gem-studded jewellery more accessible. By thoroughly studying the local culture and adapting our designs to resonate with the regional preferences, we’ve established a presence in top retail stores across the Gulf, successfully introducing the rich heritage and artistry of Indian gemstone jewellery to a new, discerning audience.”
A major jewellery exporter to the Middle East market, Anil Sankhwal, Managing Partner, J.H. Jewellers, New Delhi, and Convener of the Studded Jewellery Panel, GJEPC, says: “The Saudi Arabia market has only recently opened up for direct supply. Previously, jewellery retailers there were sourcing India-made jewellery via Dubai, which acts as a transit point from where jewellery percolates to other Middle East countries.
“Our marketing strategy for Saudi Arabia involves taking part in exhibitions which are attended by consumers accustomed to purchasing jewellery in Europe. This exposure makes the consumers there aware of the high level of Indian jewellery craftsmanship. The consumers, in turn, demand India-made jewellery from their local retailers which has led to increased orders at the B2B level. Indian jewellery is much more price-competitive than other manufacturing centres and the recent gold duty cut has given us a further boost.
“Kuwait is a major consumer of high-end jewellery, which is supplied mostly by Europe and nearby hubs like Lebanon. However, due to the unrest there the focus has now shifted to India.
“With China and the US facing economic downturns, GJEPC is making every effort to increase demand from the Middle East and Southeast Asia by conducting road shows and exhibitions that demonstrate the world-class level of quality, finish and detailing that Indian manufacturers are capable of today, that too at competitive pricing. The focus is shifting from the US and China, and GJEPC has outlined plans to concentrate efforts on Australia along with Southeast Asian markets such as Cambodia, Singapore, Indonesia, which are smaller but important future consumption areas.
One positive aspect of the Middle East markets is that lab-grown diamonds (LGDs) have not taken hold there. So, I am hopeful to see a steady rise in natural diamond jewellery exports to the region.”
By tailoring its approach to meet the specific needs of emerging regions, the Council has not only diversified India’s export base but also strengthened its reputation as a global leader in the gem and jewellery industry. As the industry continues to evolve, GJEPC’s commitment to strategic partnerships will undoubtedly play a crucial role in securing India’s future success.
Source: https://gjepc.org/