JB Insights
Let us continue to harness our collective strengths, seize emerging opportunities, and embrace change with enthusiasm.
Let us uphold our legacy of craftsmanship and integrity, and propel the industry towards unparalleled success – Vipul Shah
The Indian gem and jewellery sector is a force to reckon with in the international GJ market. GJEPC has been the apex body driving India’s export-led growth in the gem and jewellery sector since 1966.Vipul Shah, Chairman GJEPC speaks to JewelBuzz on the initiatives, strategies for growth of the GJ industry, impact of geopolitical crisis on GJ sector and government policies and regulatory frameworks aiding the growth of Indian GJ sector.
Take us through the GJEPC roadmap for the year 2024—events and initiatives, strategies for growth of the GJ industry.
GJEPC is focused on growing India’s share of the global gem and jewellery pie. The Council also has a dual focus of driving export growth and creating job opportunities in the industry. Despite challenges faced in 2023, the industry is optimistic for the year 2024.
Efforts are directed towards sustaining and increasing exports to major markets like the USA, Hong Kong, and UAE. Additionally, the industry is exploring new markets such as the UK, Italy, France, Latin America, and Cambodia among many others.
Marketing efforts will be intensified to promote Indian gems and jewellery globally. This includes organising the IIJS, the India International Gem & Jewellery Show (IGJS) in Dubai and Jaipur, actively participating in major international gem and jewellery exhibitions; and facilitating product-specific and market-specific Buyer Seller Meets.
There is also a focus on investing in technology and innovation to enhance productivity, efficiency, and competitiveness. GJEPC, in collaboration with the Ministry of Commerce & Industry and SEEPZ, has launched a Mega Common Facility Center in SEEPZ Mumbai. This initiative aims to increase manufacturing capacities, drive technological advancements, and provide extensive skill development opportunities. Importantly, the services offered will benefit both SEEPZ and Domestic Tariff Area (DTA) units, reflecting inclusivity and industry-wide progress.
The geopolitical crisis and G7 sanctions banning Russian diamonds are major concerns. What is the impact on Indian diamond industry with the manufacturing sector affected drastically with shortage of rough diamonds?
The G7/EU has considered March 1st to August 31st as the “Sunrise Period.” During this phase, the US has opted for self-certification for import shipment clearance, while the EU provides two alternatives: G7 certification and a documentary evidence-based system, facilitating Indian trade in importing goods directly to India using the documentary evidence option. Certain countries allow Mixed Origin relaxation, subject to documentary evidence. The UK has provided clarification on Grandfathering diamonds movement and the necessary procedures. As of March 1, 2024, the immediate impact of G7 sanctions appears relatively manageable, with the industry adjusting to uphold support documents, coordinate two supply chains, and comprehend country-specific requirements for legal compliance. While it is still early, being only 3 weeks into the sanctions, inquiries and feedback from members are being actively received and assessed to gain a comprehensive understanding of the situation.
How are government policies and regulatory frameworks aiding the growth of Indian GJ sector?
Based on its potential for growth and value addition, the Government of India has declared the Gems and Jewellery sector as a focus area for export promotion. Over the years, through trade-friendly policies, the government has facilitated a remarkable surge in gem and jewellery exports, which now stand at USD 40 billion.
The recent Free Trade Agreements with key partners such as the UAE, Australia, and the European Free Trade Association (EFTA) countries—Switzerland, Iceland, Norway, and Liechtenstein—hold substantial promise for further boosting Indian gem and jewellery exports.
However, to enhance the industry’s competitiveness in global markets and ensure sustainable development, several measures have been proposed to the government:
- Safe harbour rule for sale of rough diamonds in Special Notified Zones (SNZs)
- Introduction of Diamond Imprest License and reduction in import duty on cut & polished diamonds to 2.5%
- Reduction in import duty on gold/silver/platinum bars to 4%
- Introduction of a mechanism like “Rates & Taxes Refund” through EDI system similar to GST refund.
Despite the various challenges there is always a positive spirit. What is your message to the GJ industry?
Despite facing challenges, the Indian gem and jewellery industry has always shown resilience, relying on its renowned craftsmanship and skills recognized worldwide.
Understanding its inherent strengths, the industry perceives setbacks as temporary hurdles, consistently striving for improvement by integrating the latest technologies. Today, it stands capable of meeting the diverse demands of global markets.
My message to the GJ industry is simple: Let us continue to harness our collective strengths, seize emerging opportunities, and embrace change with enthusiasm. Together, we can navigate through any adversity, upholding our legacy of craftsmanship and integrity, and propel the industry towards unparalleled success.
By Invitation
Artisan Perspectives: Rethinking Craft In The Age Of Lab-Grown Stones
Prapanjj S K Kota
Founder & CEO at Réia Diamonds
- Traditionally, diamond value was driven by rarity, origin, and size, with craftsmanship playing a secondary role.
- With the rise of lab-grown diamonds, abundance is shifting focus from rarity to design and craftsmanship.
- Jewellery-making is returning to a craft-first approach, placing artisans at the core of value creation.
- Skill, precision, and finishing quality are becoming primary differentiators.
The rarity of diamonds has historically dictated their market value, and most of the conversation surrounding a diamond’s value has revolved around where (and how rare) it came from, and how large it was. While craftsmanship has always been important, it has often remained secondary, simply supporting the diamond rather than receiving the buyer’s focus.
As lab-grown diamonds begin to enter the market in greater numbers, the conversation surrounding them is also changing. With an increasing supply of diamonds, being a differentiating factor in jewellery becomes much more about design, craftsmanship, and the quality of work than about rarity.
For artisans, this shift means that the focus of making jewellery has returned to the craft itself.
From a technical perspective, lab-grown diamonds do not affect the fundamentals of jewellery making. They will continue to have the same hardness, brilliance, and structural properties that natural diamonds do; therefore, using traditional setting techniques, including precision settings, pavé work, micro-setting, and polishing, will be just as essential. While the tools may be more modern, the knowledge to work with diamonds continues to be based on many years of training and experience.
The major change comes with the new opportunities presented by working with lab-created stones.
Designers are utilising the increased access to stones to try new layouts incorporating a greater focus on symmetry, scale and intricate detail. As jewellery changes, so does its craftsmanship. Today, with designs that involve numerous stones, layered settings, and modern silhouettes, artisans must have an intentional focus on the structural integrity and balance of the pieces being created, elevating their role more than ever before.
As we see craftsmanship play a supporting role to design when jewellery becomes design-centric, the specifics of how stones are aligned, how strong the setting is, and how well metal surfaces are finished will have an impact on how a piece looks, feels, and holds up over time; and therefore, they cannot be replicated with technology alone.
This change also highlights the importance of India’s historical craft traditions. Surat’s experience in the production of diamonds has established it as a leading force in the world of fine jewellery. This industry relies heavily on a team of talented craftsmen and manufacturing expertise, which plays a very important role in the overall development of jewellery that uses natural as well as lab-grown diamonds.
The introduction of lab-grown diamonds offers a fresh new direction for many artisans, as well as introducing something new into the world of fine jewellery. As it becomes less critical to know where a stone comes from, knowing the quality of the craftsmanship around a piece of jewellery will become increasingly essential. Design integrity, structural engineering, and finishing standards will all contribute to defining the real value of a finished piece.
Therefore, there is an opportunity for artisans; thoughtful design with precise execution requires a high level of technical proficiency. The better the craft, the more evident the difference is.
With the rise of lab-grown diamonds, the discussion about value will slowly evolve to include what has always been considered great jewellery: the skill, time, and craftsmanship it takes to create a piece of art from a design.
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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.