GEMS AND JEWELLERY
INDIA LANDSCAPE
- Contributes 6-7% of the country's economy and employs over 4.3 mn people.
- During April-January 2024, India's gems and jewellery exports were at USD 26.3 bn
- The sector accounted for 9% of India's total merchandise exports in FY 2023.
- India is the 6th largest exporter of gold jewellery in the world with USA, UAE, Russia, Singapore, Hong Kong, Latin America and China being few of the importing countries
- For the United States, India is the largest importing destination for Jewellery catering to 16% of US market's demand.
- India's Lab-Grown-Diamonds exports grew by 27.8% amounting to USD 1678.9 mn in FY 2023.
Rajasthan Landscape
Rajasthan: Key Sector Performance:
- Approximately 112 operational factories in the state.
- Jaipur processes more than 300 different varieties of precious and semi-precious gemstones.
- Sector is a major job creator, with plans to establish 'Gem Bourse' which is expected to create over 1 lakh jobs.
- Rajasthan accounts for 17.5% of India's total gems and jewellery exports, approximately 90% of India's meenakari jewellery exports and 60% of Kundan jewellery exports.
Rajasthan: Value Proposition for Gems and Jewellery Sector
- Special Economic Zone in Sitapura, Jaipur spread across 110.8 acres of land, houses 154 units generating employment for 11,217 people.
- IIGJ RLC one of advance R& centre for testing and certifications established in Sitapura.
- All major strategic locations in the State are well connected to domestic and export markets through multiple modes.
- Rajasthan provides access to around 40% of India's market in the neighboring states and also serve as an indispensable medium of transport between North-Indian states and the ports on the Western coastline of India.
- Rajasthan is well-connected by air, road, and rail. Major cities like Jaipur, Udaipur, and Jodhpur have airports with flights to and from key Indian cities and international destinations.
- Among the 10 most populous cities of India, Jaipur is also Rajasthan's largest city situated within 300 kms from the national capital of Delhi with excellent road connectivity through National Highway 48.
- Out of the 44 identified Bharatmala Economic Corridors, 9 are passing through Rajasthan.
- All major locations in the state are well connected to domestic and export markets through multiple modes. The state has the 3rd largest road network in the country. The state's proximity to major ports such as Mundra Port and JNPT enables faster goods and cargo movement. Over 58% of Delhi Mumbai Industrial Corridor (DMIC) influence area runs through the state.
- Rajasthan has 4th largest rail network in India, providing easy access to major ports such as Mundra Port and JNPT, nine Inland Container Depots, one Air Cargo Complex as well as seven airports with direct international and national connectivity.
- Further, over 58% of State's area within Delhi Mumbai Industrial Corridor (DMIC) and 39% of the Dedicated Freight Corridor (DFC), connecting Delhi to Mumbai, passes through the State.
The State has many national and internationally reputed institution contributing to the growth and development of Human Capital in the State.
- The Indian Institute of Gems & Jewellery, Jaipur provides courses and training on gems and jewellery.
- Universities: There are a total of 88 universities out of which 53 are private universities, 28 are state funded universities and 7 other universities.
- Nationally and Internationally Renowned Institutions: The State is home to numerous institutes, including prestigious ones like the Indian Institute of Technology (IIT) Jodhpur, Indian Institute of Management, Udaipur, Indian Institute of Information Technology (IIT) - Kota, National Institute of Logistics and Material Management, Udaipur, National Law University, Jodhpur, All India Institute of Medical Sciences, Jodhpur, FDDI - Jodhpur, The Birla Institute of Technology & Science, Pilani etc.
- Availability of Manpower: Pool of a large young, trained workforce with 62% of Indian population in the working age group of 15 to 59 years.
Policies & Incentives
Rajasthan Investment Promotion Scheme (RIPS) 2024
Asset Creation Incentives (ACI)
- Investment Subsidy (SGST Reimbursement) -75% of the State tax due and deposited for a period of 7 years OR
- Capital Subsidy -13-28% of EFCI* to be disbursed in annual instalments over 10 years OR
- Turnover Linked Incentive (TLI) -1.00% - 1.40% of Net Sales Turnover to be disbursed annually for 10 years
Special Incentives
- Employment Booster -10% - 15% booster on chosen Asset Creation Incentive
- Training & Skilling Incentive - Skilling support in form of a Training Subsidy of Rs. 4000 per worker per month for 6 months for training delivered in Rajasthan
Exemptions
- 100% Stamp Duty
- 100% conversion charges
- 100% exemption of Electricity duty for 7 years
Additional Incentives
- Sunrise Booster- 25% Sunrise booster on top of the ACI chosen OR
- Thrust Sector Booster - 10% Thrust Booster on top of ACI chosen OR
- 5% Interest Subsidy for period of 5 years OR
- Anchor Booster - 20 % Anchor booster on top of ACI chosen
Customized Packages
- Investment of more than Rs. 500 cr - Option to redistribute benefits among ACI (Capital, TLI and SGST reimbursement)
- Investment of more than Rs. 1000 cr and employment of more than 800 persons - Customization on a higher NPV of the Asset Creation Incentive upto 20% of the NPV of the chosen ACI.
Other Unique Factors
- The State will also allow telescoping and upgrade the earlier set of incentives paid on a lower slab basis the total incentives applicable once the full investment is completed.
- If a group/cluster of enterprises within the same or nearby premises (within 50 km radius), come in with a consolidated investment proposal, then it shall be eligible for cluster incentives.
Ease of Doing Business
- RajNivesh portal provides a single point, online interface and a time-bound clearance mechanism by acting as a one-stop information / registration / approval / tracking centre for clearances / approvals.
- The platform integrates 120+ services across 14 departments, emphasizing the State's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development.
- Officials from 14 concerned Departments of State government have been deputed to Bureau of Investment Promotion, Rajasthan for facilitation of investment proposals.
- Under the Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act-2019:
- For the execution of this Act, the Government of Rajasthan launched a web portal on 12th June 2019 for filing applications.
- Issuance of 'Acknowledgement Certificate' up on submission of 'Declaration of Intent' electronically or physically to the nodal agency.
- On basis of said certificate an MSME unit is exempted from approvals and inspections under all State laws for 5 years from the date of issuance of the Acknowledgement Certificate.
Opportunities
Synthetic Diamonds and Gemstones
Innovative Alloys
Lab-grown Diamonds
Customs and Personalized Fashion Jewelry
Handmade Ornaments
Major Players in Rajasthan
