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From being the world's largest manufacturer of cut and polished diamonds, the gem and jewellery sector is aiming to become a player in the international trading arena to achieve the government's aim to boost exports to over $20 billion by 2010.
India will have to become a one-stop-shop for gems and jewellery for the country's share to be more than one per cent of the global trade.
India will have to mature from a diamond manufacturing zone to a diamond manufacturing and trading centre.
The gems and jewellery industry accounted for 18 per cent of exports in 2003-04, from the 1966-67 figure of $28 million to $12 billion in 2003-04.
"Export growth exceeded 38 per cent at over $14,329 million for January to December 2004 from $10,392 million in the corresponding period last year." Bakul Mehta, chairman, Gems and Jewellery Export Promotion Council (GJEPC) said.
The share of Israel and Belgium in the diamond trade has been falling over the years, while India's share has increased.
Presently, over 72 per cent of the total exports of gems is diamonds, 21 per cent is gold, two per cent coloured gems and others contribute to five per cent. Export of jewellery in 1991-92 was $304 million.
It increased to $2544 million in 2003-04.
Coloured gemstones export in 1966-67 was $13 million and rose to $178 million in 2003-04.
"To provide a boost to the sector, the government is already working on capacity building for skill upgradation, training for international standardisation, direct buying from diamond mining countries, advertising, creating industrial clusters, and bringing amendments in the EXIM policy," said Mehta.
Import duty on platinum has been cut from Rs 550 per 10 grams to Rs 200 and rough coloured precious gemstones are exempt from customs duty along with rough semi-precious stones.
"India is the world's largest source for trained, skilled and adaptive manpower alongwith liberalised government policies that provide a conducive environment for the bi-lateral businesses and this contributes to the continuous growth of this sector," he said.
The Bharat Diamond Bourse (BDB), now under construction, is expected to emerge as a major centre for the diamond trade.
It will provide world-class facilities to the diamond community.
"GJEPC is continuously working towards creating a pool of artisans and designers trained to international standards so as to consolidate the Indian jewellery industry as establish it as a prominent global player in the jewellery segment," said Mehta.