This has resulted in the rising consumption growth of gems and jewellery by about 11 percent in the five-year period this year.

Read some interesting, glittering facts on the gems and jewellery sector in India:

The jewellery industry in India contributes over 15 per cent of the country's total exports and provides employment to 1.3 million people directly and indirectly.

Gold jewellery forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamonds as well as gemstone studded jewellery.

India consumes nearly 800 tonnes of gold accounting for about 20 per cent of the world gold consumption, of which nearly 600 tonnes goes into making jewellery. The Indian jewellery market, estimated to be US$ 13.5 billion in fiscal 2006-07, accounts for 8.3 per cent of world jewellery sales, according to a study by KPMG.

The industry is well supported by government policies and the banking sector -- around 50 banks provide nearly US$ 3 billion credit to the Indian diamond industry. In addition, India is expected to have a diamond bourse soon.

India is the world's largest diamond processing (cutting and polishing) country with an estimated 1 million processors handling over 57 per cent of the world's rough diamonds by value.

According to industry estimates, 11 out of 12 stones (diamonds) set in jewellery are cut and polished in India. Processing is done on rough diamonds in full range of sizes and qualities, including stones larger than 10 carats.

In terms of carat, India's share in this sector is about 80 per cent of the world market. Employing over 90 per cent of the global diamond industry workforce, India also accounts for 90 per cent of the volume of diamonds processed in the world.

Exports from the industry fetched US$ 17.1 billion in 2006-07 against US$ 16.64 billion in 2005-06, showing a growth of 26 per cent. While diamonds accounted for 64 per cent of the total exports, gold jewellery accounted for 30.47 per cent, coloured gem stones and others accounted for 1.44 per cent and 1.04 per cent respectively last year.

Cut and polished diamond segment exports were US$ 10.90 billion, while gold jewellery exports fetched US$ 5.21 billion last year. Coloured gemstone exports yielded US$ 246.48 million last fiscal, against US$ 232.35 million in 2005-06.

The growth momentum has continued into the current fiscal. The gems and jewellery export industry grew by a robust 27 per cent export during the first half of the current fiscal at US$ 9.4 billion, as compared to US$ 7.4 billion in the corresponding period of 2006, according to the Gems and Jewellery Export Promotion Council (GJEPC).

The growth in diamond exports was 28 per cent, in jewellery it was 21 per cent and in coloured gemstones, it was 22 per cent. The major destinations for exports have been the US, UAE, Hong Kong, Belgium and Israel. In fact, the US, UAE and Hong Kong together accounted for over 70 per cent of the total exports in the previous fiscal year.

The increasing levels of disposable household income have resulted in record consumption levels in the domestic market. Indian jewellery demand rose by 70 per cent during the first half of 2007 compared with the same period last year. Jewellery demand increased to 387 tonnes from 227 tonnes during the period.

Gold consumption during the first six months of 2007 grew by 70 per cent to 528 tonnes compared to 307 tonnes in the same period last year. India's total gold consumption in 2006 was slightly over 700 tonnes. While jewellery accounted for around 73 per cent of gold demand, investments in the forms of coins and bars accounted for the rest.