Study onCluster Mapping of

Gem and Jewellery Sector in India

NCAER TEAM

• Conducted large scale studies like:

• Indian Human Development Survey(IHDS)

• Third Handloom Census

• Monitoring and Evaluation of HandloomClusters

• National Survey of Households on Incomeand Expenditure (NSHIE)

• Rural Economic and Demographic Survey(REDS)

• Agriculture outlook and SituationAnalysis for Food Security

* NCAER is country’s oldest and largest economic policy research institute

*The only non-government organisation to carry out studies as diverse & scientific as done by NSSO

* Compliant with the Government of India's Gazetted Guidelines on Conducting Statistical Surveys (F. No. M-12011/12/2011-NSSO (CPD)

* Collaboration with the global leader in survey research – the University of Michigan's Survey Research Centre

Brief Profile of NCAER

Broad Objectives of the Study

1. Mapping of G&J Units and Clusters by regions and product segments

2. Estimating the number of workers by regions and product segments

3. Assessing the overall economic strength of the sector

4. Assessing contribution to total income, output, employment, GVA

5. Assessment of gaps in skill, technology, logistics, infrastructure

6. Assessment of Trade Potential and Trade Competitiveness

Importance of the Cluster Mapping Study

Ø G&J is an important sector in Indian economy, contributing 7% toGDP*

Ø The industry contributes significantly to country’s foreign exchangereserves

Ø Huge domestic market as well – largest consumer of gold in theworld.

Ø In Diamond Polishing, India is a global leader with 95% marketshare

Ø But, no plausible statistics available on exact number ofclusters, units and workers employed. Various other keycharacteristics not known, which may be useful in thepromotion of the industry and formulating policies for it.

Source: Invest India, National Investment Promotion and Facilitation Agency

Sampling Methodology

• Sample Size:

1. Manufacturing units/Traders/Retailers – 66002. Exporters – 1003. Associations – 124. Institutions – 5

Around 75% sample have been selected from urban India

• Sample Frame:

Economic Census 2013-2014 has been used as a sample frame .

G&J Units and Workers by Segments (% share)

NIC Segment Units Workers

32111 Manufacture of gold, silver, other precious materials jewellery 36.2 34.0

32112 Working of diamonds and other precious, semi-precious stones 1.4 10.6

32114 Manufacture of coins, whether or not of precious metal 0.0 0.0

32119 Manufacture of other articles of gold, silver and other precious 4.9 5.0

32129 Manufacture of imitation jewellery and related articles 12.0 10.946498 Wholesale of precious metals and jewellery 1.8 2.946697 Wholesale of precious stones 0.1 0.247733 Retail sale of jewellery and imitation jewellery 36.4 31.395293 Repair and alteration of jewellery 7.2 5.1

Total (in %) 100.0 100.0

Total Units & Workers (in numbers) 10,11,670 19,48,303Source: NSSO 73rd Round, 2015-16

Composition of Regions by States

Region States

Eastern Region Bihar; Sikkim; Arunachal Pradesh; Nagaland; Manipur; Mizoram; Tripura; Meghalaya; Assam; West Bengal; Jharkhand; Orissa; Chhattisgarh.

Gujarat Region Gujarat

Northern RegionJammu Kashmir; Himachal Pradesh; Punjab; Chandigarh; Uttarakhand; Haryana; Delhi; Uttar Pradesh.

Rajasthan Region Rajasthan

Southern Region Karnataka; Kerala; Tamil Nadu; Puducherry; Telangana; Andhra Pradesh.

Western Region Madhya Pradesh, Maharashtra; Daman & Diu; Dadra & Nagar Haveli; Goa.

25,5

6,7

18,5

7,3

25,9

16,2

19,9

15,3 17

,2

6,5

23,4

17,7

0,0

5,0

10,0

15,0

20,0

25,0

30,0

Eastern Gujarat Northern RAJASTHAN Southern Western

Per

cen

t Sha

re

Units Workers

Source: Unincorporated Non-Agricultural Enterprises (Excluding Construction) in India, NSSO 73rd Round, 2015-16

G&J units and workers by Regions (% distribution)

GJ Units: 10,11,670

GJ Workers: 19,48,303

Productivity - G&J vis-a-vis overall

1.03

1.57

All GJ

GVA per Worker (Rs. Lakh per annum)

1.82

3.03

All GJ

GVA per Enterprise(Rs. Lakh per annum)

Source: Unincorporated Non-Agricultural Enterprises (Excluding Construction) in India, NSSO 73rd Round, 2015-16

India’s Top exported products (% share in total exports)

(Average of Last 5 years)

Source: Directorate General of Commercial Intelligence and Statistics

23,6

14,8 14,211,5

Engineering Goods Petroleum Products Gems & Jewellery Textiles

MJ DS I A T Total<5001 30,5 2,8 8,8 6,7 33,9 25,45001-10000 13,2 3,3 15,6 0,6 15,2 12,6> 10000 56,3 93,9 75,6 92,7 50,9 62,1

56,3

93,975,6

92,7

50,962,1

13,2

3,3

15,60,6

15,212,6

30,5

2,88,8

6,7

33,9 25,4

0%10%20%30%40%50%60%70%80%90%

100%

% s

hare

of c

lust

ers

MJ – Manufacture of gold & silver jewellery; IJ – Manufacture of imitation jewellery; DS- Working on Diamond & Gem stones; A - Manufacturing of articles of gold & silver; and T – Trade.Note: Figures within parentheses are the number of workers in absolute figuresSource: NSS 73rd Round unit level data

Distribution of Clusters in Gems and Jewellery Sector in India

Workers by Regions (in clusters with >10000 workers)

MJ – Manufacture of gold & silver jewellery; IJ – Manufacture of imitation jewellery; DS- Working on Diamond & Gem stones; A - Manufacturing of articles of gold & silver; and T – Trade.Note: Figures within parentheses are the number of workers in absolute figuresSource: NSS 73rd Round unit level data

MJ DS I A T Total Rajasthan 10,42 1,02 2,35 23,34 1,81 6,01North 9,21 0,07 12,22 62,41 15,15 14,03West 16,31 2,40 26,70 5,79 27,79 18,40East 24,67 0,00 44,62 0,31 14,90 18,40Gujarat 6,05 96,47 12,08 1,63 7,44 21,46South 33,34 0,04 2,03 6,53 32,91 21,70

0%10%20%30%40%50%60%70%80%90%

100%

% s

hare

of w

orke

rs

Workers by Regions (in clusters with 5001-10000 workers)

MJ – Manufacture of gold & silver jewellery; IJ – Manufacture of imitation jewellery; DS- Working on Diamond & Gem stones; A - Manufacturing of articles of gold & silver; and T – Trade.

Note: Figures within parentheses are the number of workers in absolute figuresSource: NSS 73rd Round unit level data

MJ DS I A T TotalRajasthan 13,46 20,98 11,69 0,00 4,12 8,94North 9,17 0,00 10,90 0,00 19,09 13,86West 14,57 0,00 14,75 0,00 25,59 19,41East 32,21 0,00 11,95 33,99 22,50 23,93Gujarat 5,53 79,02 8,09 22,55 2,06 6,31South 25,06 0,00 42,62 43,47 26,65 27,55

0%10%20%30%40%50%60%70%80%90%

100%

% s

hare

of w

orke

rs

Cluster Mapping As an Enabler to Artisans

• Opinions of all major stakeholders are taken- everyone’s needsconsidered.

• Identification of clusters would enable decision/policy makerschoose

locations for jewellery parks, mega CFSs, CFCs andtraining institutesbeneficiaries of social schemes like parichay cards; healthinsurance schemes; etc.

• Help an overall transformation of Gems and Jewellery sectorfrom unroganised to a more organised structure.

Thank You