Foreign direct investment (FDI) inflows into India’s gems and jewellery sector grew 673% year-on-year in the first quarter of FY24, rising to $40 million from $5 million in Q1 FY23. The sharp rise underscores the renewed investor confidence in the sector, the Gems and Jewellery Export Promotion Council (GJEPC) said.
The jewellery sector’s share of total FDI inflows rose to 0.24% in Q1 FY24 from just 0.05% in the same period last year, according to the Department of Promotion of Industry and Internal Trade of India’s Ministry of Commerce and Industry. The growth, GJEPC noted, “reflects India’s rising stature as a manufacturing centre for world-class gems & jewellery, and India’s rising global appeal as a preferred destination for foreign investment.”
According to GJEPC Chairman Vipul Shah, foreign investment is not just about capital, but also about advanced technologies, improved manufacturing processes and new market linkages. “The infusion of capital will likely lead to expansions in manufacturing capabilities, innovation in design, and stronger global branding of Indian jewellery products”, he said. “The inflow of foreign capital also aligns with India’s vision to become a global leader in gems & jewellery manufacturing.”
In April-June 2024, FDI inflows into India grew by 47.8% to $16 billion, compared to $11 billion in the same period last year.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
