India has been proudly mentioned as “The Golden Bird” in the pages of history due to its massive mining reserves of precious gems and metals. India is the largest global exporter of Gems & Jewellery and occupying a share of over 15% in India’s total exports, has been declared it as a focus area of export promotion by the Indian government. The net exports of gems and jewellery stood at US$ 20.48 billion as of November 2019.
The first ever diamond futures contract in the world has been introduced by The Indian Commodity Exchange (ICEX) to cash in the available global opportunities in the sector. Its growth in India is driven by factors like high availability, low labour cost and promising level of craftsmanship to mould and fabricate the metal into stunning jewellery designs which enjoy a huge local and global demand.
Gems and Jewellery being a high-value industry is prone to risks of thefts, burglary and unauthorized transactions by its own employees which may have serious financial repercussions. Frauds and scams, a decline in interest covers, sporadic demand, the fluctuating value of foreign exchange, huge inventories, and fluctuating global economic trends are some other risks that are to be covered by companies indulging in the sector. Procuring precious gems and metals and transferring them for manufacturing also exposes one to excavating risks and supply chain management risks. Smart insurance cover thus becomes a bare compulsion to outsmart these risks and participate liberally in the sector’s growth.
