Foreign direct investment in India’s gem and jewellery sector soars by 673% 

The sectors’ share within India’s total FDI influx rose marginally from 0.05% to 0.24% when compared to quarter report from similar period last year. 

Mumbai: Foreign direct investment (FDI) in India’s gem and jewellery sector surged by an impressive 673% year-on-year in the first quarter of the 2024 financial year, reaching approximately Rs 330 crore. This remarkable increase reflects renewed confidence among investors in the industry, according to the Gem and Jewellery Export Promotion Council (GJEPC). 

In the same period last year, FDI in the sector stood at around Rs 42 crore. A review conducted by the GJEPC, utilizing data from the Department for Promotion of Industry and Internal Trade, revealed that the gem and jewellery sector’s share of India’s total FDI inflow grew to 0.24% in the first quarter of 2024, up from just 0.05% during the same timeframe last year. 
 
The gems and jewellery industry has witnessed a steep incline in export figures over the recent few years. In April-June 2024, India’s gems and jewellery exports reached US$ 6.87 billion, while in June 2024 gems and jewellery stood at US$ 1.91 billion. In 2022, India ranks first among the top exporters in cut & polished diamonds, and second in gold jewellery, silver jewellery and lab-grown diamonds. Such indications can explain investment flowing in with the culminative figure reaching US$ 1,276.52 million between April 2000-March 2024. 

Vipul Shah, chairman of the GJEPC, highlighted the multifaceted benefits of foreign investments, stating, “These investments not only bring capital but also advanced technologies, improved production processes, and new market linkages, which are essential for the sector’s growth and competitiveness on a global scale.” He further noted that this influx of capital is expected to enhance manufacturing capabilities, foster innovation in design, and strengthen the global branding of Indian jewellery products. 

The GJEPC emphasized that this development underscores India’s growing footprint in the global gem and jewellery market. The organization is actively working to boost Indian gem and jewellery exports in alignment with the government’s ‘Make in India’ initiative, further solidifying the country’s position as a leading player in this industry. 

Retail Jeweller India News