India is the leading consumer and importer of bullion. It consumes nearly 800 MT of gold, which accounts for 20 per cent of world gold consumption. Out of this, around 600 MT of gold goes into making jewellery.

The domestic bullion and jewellery market is estimated to be around US$ 16.1 billion, which is expected to grow to the size of US$25 billion within 2-3 years.

India’s gem & jewellery sector commands around 80% of the jewellery trade worldwide. Total Export of jewellery in April 2009 was at Rs.5749.56 Crore.

The Indian gems and jewellery industry is one of the fastest growing segments in the Indian economy. The annual growth rate is approximately 15 per cent.

Gems and jewellery worth US$ 17.79 billion was exported during April 2008 to February 2009. The United Arab Emirates (UAE) was the largest importer of gems and jewellery from India in 2008-09, with a share of 31 per cent. This was followed by Hong Kong with 25 per cent and the US with 20 per cent. The gem and jewellery sector accounted for 13 per cent of India’s total merchandise exports.