Gems and Jewellery edited FINAL - smallB

pearls worth US$ 4.6 million in 2004 and synthetic stones worth
US$ 1.9 million.
The imports are in accordance with the demand in the domestic and
exports markets.
India’s capabilities in diamond processing can be leveraged to move up the value
chain
US$ million
Value addition in Indian diamond processing industry
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
6,647.8
4,812.3
6,186.7
Value addition
5,971.9
4,349.8 4,205.5
7,110.6
Exports of finished
diamonds
6,271.0
8,627.5
7,141.0
Imports of rough
diamonds
1999-2000 2000-2001 2001-2002 2002-2003 2003-2004
India’s significance in the global gems and jewellery industry can be largely
attributed to its strength in diamond processing. Value enhancement by the
Indian diamond processing industry is the highest among other countries.
The value addition in diamonds by Indian industry was worth US$ 1.48 billion
in 2004 compared to US$ 840 million in 2003.
The diamond industry pipeline depicted in the figure below indicates the value
addition across different stages from rough diamonds to diamond jewellery,
and demonstrates how US$ 1.46 billion of rough production is transformed
US$ million
1.46 7.83 7.91 8.45 9.76 13.7 14.46 28.4 56.9
Rough
Production
Value leakages represent potential opportunities
Rough Sales and stocks
India's share is negligible
Rough
Production
Value
Mine
Sales
Rough
Sales to
Cutting-
Centers
Processing Centers Jewellery
manufacturing center
India's share ~ 52%
Net roughs
available
for local
production
Value of
polished
for local
production
India's share < 1%
Value of
diamond
content in
retail sales
Note: The width of each block represents the value at each stage
Source: KPMG Analysis, international diamond exchange, Tacy Ltd. Chaim Evan – Zohar
Jewellery
production
Jewellery
Retailing
Retail sales
of diamond
jewellery