Foreign Direct Investment (FDI) in India’s gems & jewellery sector witnessed an impressive year-on-year growth of 673% in the first quarter of FY2024, rising to $40 million (INR 330 crore) from $5 million (INR 42 crore) during the same period in 2023. This sharp increase highlights renewed investor confidence in the sector.
According to a review by the GJEPC, based on the Department for Promotion of Industry & Internal Trade (DPIIT) database, the gems & jewellery sector’s share in India’s overall FDI inflows expanded to 0.24% in Q1 FY2024, up from a mere 0.05% in Q1 FY2023. This increase in the sector’s share reflects India’s rising stature as a manufacturing centre for world-class gems & jewellery, and India’s rising global appeal as a preferred destination for foreign investment.
Vipul Shah, Chairman, GJEPC, said, “Foreign investments typically bring not only capital but also advanced technologies, improved production processes, and new market linkages, all of which are vital for the sector’s growth and global competitiveness. The infusion of capital will likely lead to expansions in manufacturing capabilities, innovation in design, and stronger global branding of Indian jewellery products. The inflow of foreign capital also aligns with India’s vision to become a global leader in gems & jewellery manufacturing.”
Overall, FDI inflows into India surged by 47.8% to US$ 16 billion (INR 1.34 trillion) in April-June 2024, compared to US$ 11 billion (INR 899 billion) in the corresponding period of the previous year. This signifies a favourable investment climate, supported by government policies to attract foreign capital. With the government’s continuous focus on reforming the FDI framework and improving the business environment, India is poised to attract more foreign investment in the coming years.