Foreign direct investment in India’s gem and jewellery sector grows 673%: GJEPC

Foreign direct investment in India’s gem and jewellery sector grew by 673% year on year in the first quarter of the 2024 financial year to total approximately Rs 330 crore, showing renewed investor confidence in the industry.

In the first quarter of the 2023 financial year, foreign direct investment in India’s gem and jewellery industry totalled approximately Rs 42 crore, the Gem and Jewellery Export Promotion Council reported on its website. The GJEPC conducted a review using the Department for Promotion of Industry and Internal Trade’s database and found that India’s gem and jewellery sector’s share of the country’s overall foreign direct investment inflow expanded to 0.24% in the first quarter of the 2024 financial year from 0.05% in the same financial quarter a year prior.
 
“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,” said GJEPC chairman Vipul Shah, the GJEPC reported on its website. “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 and jewellery manufacturing.”
 
The development shows India’s increasing presence in the global gem and jewellery industry, according to the GJEPC. The trader’s body works to boost Indian gem and jewellery exports in line with the government’s ‘Make in India’ goals.