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Gems and jewellery is one of the important sectors of India’s foreign trade and has traditionally played a significant role in earning foreign exchange, generating employment and strengthening India’s position in international markets. However, the statement that “the gems and jewellery sector is not import oriented” needs to be examined carefully. In reality, the sector is highly dependent on imported raw materials, particularly rough diamonds, gold, silver, coloured gemstones and other precious materials. Therefore, while the sector is strongly export oriented in terms of its contribution to merchandise exports, its production and export activities are substantially supported by imports. India has developed a globally competitive gems and jewellery industry, especially in diamond cutting and polishing. Cities such as Surat and Mumbai are major centres of the diamond trade, while Jaipur is internationally known for coloured gemstones and jewellery processing. The sector includes mining-related activities, cutting and polishing, manufacturing, designing, wholesaling, retailing and exporting. Indian craftsmen and manufacturers have developed considerable expertise in processing imported raw materials and converting them into high-value finished products for international consumers. The export orientation of the sector is evident from the large volume and value of gems and jewellery exported from India. Cut and polished diamonds constitute a major component of these exports. India imports rough diamonds from major producing countries and adds value through cutting, polishing and grading before exporting the finished diamonds to markets such as the United States, the United Arab Emirates, Hong Kong, Belgium and other countries. This _____ ______ __________ _______ ____ _______.
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