§1How big it is

§2Ways to get started

  • Jewellery job-work (karigar workshop) for retailers
  • Silver jewellery / oxidised jewellery for online sale
  • Lab-grown diamond polishing unit
  • Hallmarking centre (BIS-recognised AHC)
  • Imitation / fashion jewellery manufacturing

See the Business Encyclopedia

§3Hubs and clusters

  • Surat, Gujarat - gems and jewellery (Town of Export Excellence)
  • Mumbai (SEEPZ, Bharat Diamond Bourse), Jaipur (coloured gems), Thrissur, Kolkata, Rajkot - well-known jewellery clusters (cluster mapping by NCAER/GJEPC)

§4Licences and registration

  1. BIS registration for hallmarking (mandatory for gold jewellery/artefacts in notified districts; HUID per piece)
  2. Kimberley Process certificate for rough diamond import/export
  3. IEC and GJEPC RCMC for exports
  4. PMLA registration/compliance (FIU-IND) for cash transactions above threshold - check current rule
  5. Udyam Registration (MSME) - free, online, PAN + Aadhaar based
  6. GST registration (mandatory above turnover threshold or for inter-state supply / e-commerce sale)
  7. Shops & Establishment registration or Factory Licence (Factories Act / state rules) depending on size and power use
  8. Consent to Establish and Consent to Operate from the State Pollution Control Board - category (Red/Orange/Green/White) as per CPCB 2025 harmonised list; White category is exempt from consent
  9. IEC (Importer Exporter Code) from DGFT if you import or export

§5Regulators

  • Department of Commerce (sector, SEZ/EOU)
  • BIS (mandatory hallmarking of gold jewellery)
  • Kimberley Process (rough diamond imports)
  • RBI / DGFT (gold import rules)
  • Prevention of Money Laundering Act - dealers in precious metals and stones are reporting entities above cash thresholds

§6Government help

  • SEZ / EOU benefits (SEEPZ Mumbai, Surat SEZ)
  • Diamond Imprest Authorisation and Gold import schemes under Foreign Trade Policy
  • Common Facility Centres under MSE-CDP in jewellery clusters
  • PLI - not available
  • Cross-sector schemes that also apply (detailed in the programmes file): Udyam benefits, PMEGP, PM Mudra Yojana, CGTMSE credit guarantee, Stand-Up India, MSE-CDP (cluster development), RAMP, MSME ZED and Lean certification, MSME Champions, TReDS, Startup India (SISFS seed fund, Fund of Funds, CGSS), RoDTEP, EPCG, Advance Authorisation, Districts as Export Hubs, ODOP (One District One Product)

All schemes

§7For exports

  • GJEPC - Gem & Jewellery Export Promotion Council

§8Pros and cons

Merits

  • Established clusters with skilled karigars (Surat, Mumbai, Jaipur)
  • Export market infrastructure via GJEPC shows (IIJS)
  • Lab-grown diamonds open a lower-capital segment

Demerits

  • Very high working capital - gold and diamonds are bought upfront
  • Import-dependent raw material; gold price volatility
  • Exports fell in FY25 per GJEPC provisional data reported in news (official figure not confirmed)
  • Heavy compliance: hallmarking, PMLA, KYC

Sources

  1. NCAER for GJEPC: Cluster Mapping Study of the Gems & Jewellery Sector in India (Oct 2020)
  2. DGFT Foreign Trade Policy Appendix 1B - List of Towns of Export Excellence
  3. Bureau of Indian Standards - Quality Control Orders