§1What this business is
Rough synthetic stones are sliced, fixed on dop sticks and cut into facets on laps, then polished. Most work is by hand with simple machines and an eye glass. Cut stones go to imitation and fashion jewellery makers.
Capacity: 1,20,000 units a year (the profile labels the column 'tons'), cost of production ₹75.42 L at full capacity.
§2Is it right for you?
Who it is for
A trained gem cutter or someone in a cutting cluster (Jaipur, Surat, Khambhat and similar).
Who it is not for
Someone without cutting skill or a jewellery buyer.
Advantages
- Very small machine cost (₹4.20 L)
- Skilled hand work that can be done in a small room
- Steady demand from imitation jewellery makers
- Few workers needed
Drawbacks
- Raw stones are expensive, so working capital is large
- Margin is about 11% of sales at full capacity
- Needs trained cutters
- Price set by large cutting hubs
Skills you need
- Faceting and polishing
- Judging stone quality and yield
- Buying rough stones
- Selling to jewellery makers
Why difficulty 3/5: Simple set-up, but skill and costly stock decide profit.
§3Market
Who buys
- Imitation and fashion jewellery makers
- Jewellery wholesalers
How it sells
- Direct sale to jewellery units
- Gem traders in cutting hubs
Good to know
- The profile says cubic zirconia ('American diamond') is the most successful synthetic gem and is widely used in jewellery.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Synthetic gem slicing-cum-preforming machine | 1 | — |
| Synthetic gem faceting and polishing machine | 1 | — |
| Cutting lap and polishing lap | 1 set | — |
| Dop sticks, plastic dop-stick stand, eye glass, spirit lamp | 1 set | — |
| Machine table, stools, washing vessel, small tools | 1 lot | — |
| All equipment together | 1 lot | ₹4,20,000 |
From: KVIC Project Profile — Gem Cutting and Polishing (PMEGP)
- Rough synthetic gem stones (e.g. cubic zirconia)₹67.00 L a year at full capacity
- Labels and packing material₹25,000 a year
From: KVIC Project Profile — Gem Cutting and Polishing (PMEGP)
In our raw material database
§5Licences & registration
- Udyam registration
- GST registration
- Trade licence from the local body
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP fits (KVIC profile); MUDRA and CGTMSE for the loan.
§7Money
How the investment is worked out: KVIC profile: equipment ₹4.20 L (slicing machine, faceting and polishing machine, laps, dop sticks, eye glass, tables and small tools) + working capital ₹12.00 L = ₹16.20 L. Land and work shed own.
Working capital: Working capital ₹12.00 L — most of the project, because raw stones cost ₹67.00 L a year.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: GJEPC (Gem & Jewellery Export Promotion Council)
- HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Raw stone price rise
- Breakage and low yield
- Buyers delaying payment
- Competition from machine-cut imports
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working gem cutting and polishing unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Gem Cutting and Polishing?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.