Uttar Pradesh Focuses on Gems & Jewellery Growth | 27 Nov 2024

Why in News?

The Uttar Pradesh government, is taking substantial steps to enhance the gems and jewellery sector, focusing on economic value addition and export growth.

Key Points

  • Uttar Pradesh, with its rich cultural heritage and skilled craftsmanship, is a significant player in India’s gems and jewellery sector.
    • The state’s annual trade in this industry is estimated at over Rs 1 trillion, involving more than one million traders, retailers, craftsmen, and designers.
  • Major Hubs:
    • The hubs for gems and jewellery trade in Uttar Pradesh include Meerut, Lucknow, NOIDA Export Processing Zone, Moradabad, Kanpur, and Agra.
    • These centers are pivotal in both manufacturing and exports, contributing significantly to the state’s economy.
    • The organized segment of the trade accounts for about 35% of the overall market, highlighting the importance of structured growth and development.
  • Government Initiatives & Significance:
    • The CM of Uttar Pradesh has drafted a comprehensive blueprint to develop Meerut as a major jewellery manufacturing and trading hub for North India.
    • Meerut’s jewellery industry, with an annual turnover of over Rs 2,000 crore, employs approximately 40,000 goldsmiths, gemstone makers, and jewellery traders.
    • The proposed hub, spanning 32,000 square meters, aims to position Meerut as a key center for gems, precious stones, and gold jewellery.
    • To support this vision, the government plans to construct a modern multi-storey flatted factory complex to foster business growth and encourage startups in the sector.
  • National and Global Significance:
    • The gems and jewellery sector in Uttar Pradesh is not only vital for the state but also contributes 10-12% of India’s total merchandise exports.
    • In 2023, the domestic market for gems and jewellery was valued at USD 92 billion, underscoring its importance in the national economy.
    • Uttar Pradesh’s thriving wholesale jewellery market serves clients from other states, further solidifying its role as a key player in the industry.