Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

GOLD JEWELLERY EXPORTS
According to The Gem & Jewellery Export Promotion Council (GJEPC), around 800 enterprises
fabricate plain or studded gold jewellery for export.
Over the past 4 years, their duty-free import of gold has increased from 35 tonnes to 54 tonnes.
Gold jewellery exports have surged over the past 10 years, from US$ 304 million in 1991-92 to US$ 1.2 billion in
2001-02.
Over the same period, value addition above the cost of gold used has grown from 24% to 51%, rising from US$ 73
million to US$ 594 million.
The jewellery export industry receives much government support through the GJEPC, which falls under the
administrative control of the Ministry of Commerce and Industry.
EXPORT FABRICATION LOCATIONS
Gold jewellery for export is fabricated in 4 categories of location.
Fabricators in SEEPZ (Mumbai) and in the Domestic Tariff Areas account for almost all gold jewellery exports.
Special Economic Zones (SEZ)
Isolated, demarcated manufacturing zones dedicated to exports. A new category, effective from April 2000.
SEEPZ (Mumbai), converted to SEZ status in 2000, dominates the gold jewellery export industry. Its 72 large units
(expected to increase to 120 by 2003) fabricate 44% of the value of India’s gold jewellery exports.
Export Processing Zones (EPZ)
Smaller, isolated, demarcated manufacturing zones dedicated to exports. MEPZ (Chennai) and NOIDA EPZ (near New Delhi)
fall into this category, but their gold jewellery output is low.
Export Orientated Units (EOU)
These units can be located anywhere. A Customs officer is also obliged to be in attendance 24 hours daily to monitor all
materials brought into and out of each unit.
Domestic Tariff Areas (DTA)
Defined as any location falling outside a demarcated zone. Fabricators in DTA’s account for 52% of the value of gold
jewellery exports.
EXPORT MARKETS
3 countries account for 85% of the value of India’s gold jewellery exports: USA (55%), United Arab Emirates
(20%) and the United Kingdom (10%).
Export growth over the past 10 years has relied largely on the USA market, sales having increased from less than US$ 100
million in 1991-92 to US$ 647 million in 2001-02.
PRODUCTS
Almost all gold jewellery fabricated in the export zones is studded, mainly with diamonds.
Although SEEPZ (Mumbai) accounts for 44% of the value of gold jewellery exports, its 72 units are reported to produce
studded gold jewellery only.
However, fabricators in the DTA’s, accounting for 52% of the value of gold jewellery exports, are reported to produce a
substantial amount of plain gold jewellery.
Most export products are fabricated to meet the precise requirements of overseas customers. Although many customers
provide detailed drawings, most fabricators have in-house designers as well.
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AN INTRODUCTION TO THE INDIAN GOLD MARKET