This impressive year-on-year growth underscores the renewed confidence of international investors in India’s burgeoning gems & jewellery industry.
The latest data from the Gem & Jewellery Export Promotion Council (GJEPC), drawing from the Department for Promotion of Industry & Internal Trade (DPIIT) database, reveals that the sector’s share in India’s total FDI inflows has expanded to 0.24% in Q1 FY2024, up from a modest 0.05% in Q1 FY2023. This marks a significant shift in India’s position as a global manufacturing hub for high-quality gems & jewellery and reflects its growing attractiveness as a destination for foreign capital.
Vipul Shah, Chairman of the GJEPC, emphasized the broader implications of the inflow: “Foreign investments typically bring not only capital but also advanced technologies, improved production processes, and new market linkages, all of which are vital for the sector’s growth and global competitiveness. The infusion of capital will likely lead to expansions in manufacturing capabilities, innovation in design, and stronger global branding of Indian jewellery products. The inflow of foreign capital also aligns with India’s vision to become a global leader in gems & jewellery manufacturing.”
The surge in FDI inflows into the gems & jewellery sector coincides with a broader increase in foreign investment across India. Overall, FDI inflows into the country grew by 47.8% to US$ 16 billion (INR 1.34 trillion) in the April-June 2024 period, up from US$ 11 billion (INR 899 billion) in the same period last year. This upward trajectory highlights a favorable investment climate, bolstered by the Indian government’s ongoing reforms aimed at attracting foreign capital and improving the ease of doing business.
As India continues to reform its FDI framework and strengthen its position as a global economic powerhouse, the gems & jewellery sector is expected to play a pivotal role in driving the country’s future growth and international trade relations.
