Gems and jewelry have a rich cultural heritage that has given rise to a large and thriving industry in India. This industry is making a glittery contribution to the country’s GDP, but at the same time, it is facing the challenges of fragmentation and an unorganized setup.
Present Scenario and Future Aspects
India is deemed to be the hub of the global jewelry market and supposed to touch USD 90 billion by 2018. The growth in this sector will be contributed majorly by jewelry retailers and nationalized chains. The fragmented gems & jewelry industry is still dominated by around 80 per cent of local jewellery manufacturers in India and traders. The share of nationalized jewelry retail chains has increased from 3 to 5 percent over the last few years, but there has been a significant increase in the share of regional jewelry retail chains, from 7 to 17 percent in last five years. This figure shows that the organized jewelry sector has grown but still a major chunk of it is confined to the regional boundaries.
Challenges Faced by the Jewelry Retailers belonging to the unorganized Sector
The Indian jewelry market is bound to expand significantly in the coming 5 years. The big retail stores are all set for expansion, but it is the brick-and-mortar stuck, small scale jewellery traders in India who will lose out. The main reason is that they don’t have a common platform or enough working capital to take their products to the potential buyers in a cost-effective manner. The only way for the jewellery manufacturers in India and retailers to be a part of the organized jewelry world and reap the benefits is to take a step towards digitalization and the Startup India initiative.
Startup India Plan: Need of the Hour
Startups are flourishing with innovative ideas, but where they lack is resources and financial boost. With the inclusion of gems & jewelry sector in the Startup India plan, the small and medium scale jewellery manufacturers in India and jewellery traders in India are expected to make even bigger contribution to the country’s GDP in future. With the launch of Startup India action plan by the Prime Minister, Mr. Narendra Modi, the startups in gems & jewelry world can expect a major boost to their business prospects. There are a numerous ways in which Startup India can help the new names in this industry:
- A common hub for all retailers and manufacturers both offline and online
- Making available funds of worth Rs. 10,000 crore to the new startups
- Making registration process simplified through mobile application and online portal
- Tax exemptions for the first three years to startups
- Launch of Atal Innovation Mission targets to encourage the new talent.
Jewellery manufacturers in India want to sell more new designs, and jewellery traders in India aim at procuring more varieties to cater to the increasing demand of the clients. Myheera.com presents a unique way to connect them through its 360 degree online business solutions. With myheera.com – India’s first online B2B portal for gems & jewelry, the industry is all set to take a digital route with limited budget, but great business initiatives.