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How to Start a Jewelry Business in India

Table of contents, step 1: business plan to start a jewelry store business in india                                                                   , step 2: creating a name for your business, step 3: create a logo for your jewelry brand, step 4: legalize your business, step 5: get a license for jewelry store, step 6: get business insurance, step 7: finding your jewelry style, step 8: make what you love, step 9: do your market research, step 10: marketing techniques, step 11: select a place to sell your jewelry , step 12: start selling jewelry, jewelry business startup cost, tips to start a jewelry store business in india.

Introduction on how to start a Jewelry business

Starting your own jewelry business might sound overwhelming, but it’s not as hard as you think. To assist you out we prepared for you an easy guide to opening your first jewelry business. It doesn’t matter whether you’re a licensed silversmith, a weekend crafter, or a gemologist with a side business in beaded creations. If you’ll accurately gauge the market for what your customers want to shop for, create unique stand out pieces that satisfy a distinct segment market, and deliver a top-quality product you would possibly have a future as a jeweler.

Jewelry is an accessory loved and desired by women of all ages, thus making jewelry a great business to venture into. The jewelry business is a highly profitable business that will always remain popular. Even when other business industries might be facing a downturn, the jewelry business enjoys being in demand. The business is especially lucrative in a country like India where a lot of festivals and traditions are celebrated with much fanfare and none of these celebrations, including weddings and festivities, are complete without fine jewelry. 

A step by step guide to start a Jewelry business

You have found the right business idea, and now you’re able to take the next step. There is a lot more to starting a jewelry business than simply registering it with the state. We have put together this easy guide to starting your jewelry store. Surely these steps will make your new business more successful, registered properly, and legally compliant.

What do you need to operate a Jewelry business?

A cash flow forecast, a business license and legal structure, a business bank account and tax plan, a bookkeeping system, work, showcase and storage space, inventory or a design collection, tools for making jewelry and repairing jewelry, a professional website, and an active social media accounts.

Starting a fashion business just based on one’s creativity and artistic skill is not enough. Business skills are equally important. Every business including the jewelry business needs thorough planning while starting it to ensure a great start and a successful run. And thorough planning means a jewelry business plan to be made before physically establishing the business. The business plan requires thorough groundwork to be done as the business plan helps put into words the exact business idea conceptualized by the entrepreneur and lists the objectives of the business too. Additionally, the business plan is the document that helps procure a loan for the starting and expansion of the business. 

The jewelry business plan should include:

  • Stating the business goals 
  • Business name and identity
  • Legalizing the business
  • Capital requirement 
  • Market research and competition study
  • Marketing strategy 

Choosing a name for your jewelry business may take some time and thought, as you’ll need to choose a name that’s catchy, creative, and effectively conveys the message and mission of your company. Make sure you check to see if the name is available as a domain name on the Internet so you can build a website that can showcase or even sell your jewelry. If you want exclusive ownership to your business name, consider having your business trademarked.

You have to follow some basics carefully while naming a business.

  • Pick a name of your interest
  • Choose a simple business name
  • Research your competitors’
  • Get suggestions from friends & family
  • Consider your brand message
  • Play with words
  • Consider your brand personality
  • Explore name generators on the web
  • Check for domain availability
  • Registering your jewelry business name as a trademark

This is an essential step. You should start the marketing process only after naming your jewelry unit appropriately. Many businesses take the naming stage lightly and end up losing customers.

Craft a logo that reflects your brand. Creating a memorable and effective logo can help make a great first impression on potential customers. When designing your logo, remember to keep your brand and target audience at the center of your decisions. Make a list of everything you want your logo to communicate about your business, as well as any aesthetic requirements, before starting your first design.

If you have the resources, you can hire a professional designer to create a logo for you. Try searching online for designers through websites like 99Designs.

Next, you’ll need to cover all legal bases to ensure you’re running your jewelry business aboveboard. First, if you plan on running your jewelry business from your home, check with your local clerk’s office about licensing and permit requirements for home businesses. 

Once you’ve created your business name, you’ll next decide on a business entity and register your jewelry business accordingly with your secretary of state. The easiest route to go is as a sole proprietorship, which doesn’t require that you register with your state. However, a sole proprietorship won’t offer you protection if your business runs into any legal issues. So the safest route to go is to register your business as an LLC. Registering as an LLC is an easy process, which you can do in a matter of minutes online.

The legal process can include the Shop Act Registration details if operating from a commercial space along with GST registration details and other legal proceedings and registrations required for the jewelry business to operate without any hurdles.

Under the BIS Hallmarking Scheme for Gold and Silver, jewelers need to take a license for the sale of Hallmarked article from each jewelry store. A jeweler having more than one jewelry store under the same management can obtain a corporate license covering all of its sales outlets. Certain terms and conditions shall be applicable.

List of documents required to start a jewelry store business in India

1) Self-certified copy establishing the firm

2) Self-certified copy authenticating the firm’s premises (not older than 3 months)

3) Documents as identity proof of signatory on the application:

  • Aadhar Card
  • Driving License
  • Voter Identity card
  • Photo Bank ATM card
  • Photo Credit card
  • CGHS/ECHS photocard

4) The additional documents need to be submitted with the application are:

  • Agreement on Rs 100/- non-judicial stamp paper in the prescribed format
  • Location map of premises from some nearest prominent

Get BIS license for selling Hallmark jewelry

A jeweler who wanted to sell Hallmarked gold jewelry is required to get a license from BIS for any particular premises of a jewelry business. The license is granted to a jeweler for a particular premises, if the application in prescribed format along with necessary documents is found in order and payment of requisite fees. You need to sign on an agreement for operating the license by the jeweler jointly with BIS. If the jeweler also wanted to sell Hallmarked silver jewelry along with gold, then another license shall be obtained from BIS by submitting a separate application and agreement.

You may also consider taking out business insurance to further protect yourself. Start by looking into product liability insurance, which protects businesses from legal fallout in case their product causes injury to a customer or other third-party; and general liability insurance, which protects businesses against a slew of common legal claims. If you hire employees, you’ll need to look into other types of insurance like workers’ compensation, unemployment, and state disability insurance. 

Ideally, you want to craft jewelry on your own that has a distinctive brand to ensure it stands out from competitors. However, at the same time, your jewelry should also fall into a standard jewelry category, as picking a style can help your customers easily identify your work. Standard jewelry style categories to choose from include:

Fine Jewelry: made with precious or semi-precious gems and stones, and designed for upscale customers and special occasions.

Example: diamond engagement ring

Fashion or Costume Jewelry: made from inexpensive metals and materials, being aimed at trendy, everyday customers.

Example: ribbon choker with plated silver pendant

Mid-range Jewelry: includes an emphasis on uniqueness and design, and makes a statement.

Example: structural laser cut acrylic statement necklace

When starting your jewelry business, you need to make each piece of your jewelry look different from your competitors’ offerings. Apart from being visually appealing, you want to look out of its packaging design that must be empirical and make the customer prefer your product over the competitors.

You should be doing the innovative work of creating jewelry pieces from your heart. Remember that you are going to be working for hours. So encourage your workforce and have interaction yourself together with your business.

Market research is another crucial step you need to take to be a successful jewelry making business. Market research is an organized way of learning about your competitors as well.

There are few things involved in market research including:

  • Exploring the marketplace,
  • Finding out what a customer wants,
  • Determining how you can meet those wants and needs
  • Identify your target market

As the jewelry market is competitive, you want to use a multi-pronged marketing strategy to get your work to stand out to potential customers. Create marketing materials like business cards with your website URL and email address on them. Consider developing an e-commerce site through inexpensive hosting platforms like Shopify. If your budget permits, look into hiring a PR firm to advertise your designs.

Use social media

Social media is an easy way to market your works and reach a vast audience, and a simple picture of your jewelry with an inspirational quote on Facebook or Instagram can produce amazing results. Nowadays, everyone has their social media accounts on Facebook, Twitter, Instagram, or Pinterest. So, to get your business known on diverse social media create your social media accounts. There are certain things you need to follow:

  • Regularly post images of your jewelry items
  • On social media channels post your blog regularly
  • Make sure you always include links to your products in your Etsy, ArtFire, and other online shops.

You may find success by selling your designs at some events and shows. Not only will you get the word out about your brand, but you get the chance to meet and interact with your customer base and share your passion for creating jewelry. You may also want to contact local retailers for wholesale and consignment sales of your designs.

Now it’s time to make your plan real and start selling. You know what you’re selling, who you’re selling it to, how to reach your customers, and how much is it all going to cost you. The start might not be easy and each step you took before might change but, don’t be afraid of it. If you see that your products are also popular among a different clientele than you predicted, adjust your marketing strategy and business plan accordingly.  

You might need a jewelry studio or a workshop depending on your idea for the jewelry business. However, selling your jewelry online through your website is one of the easiest ways. If you don’t have resources to make your website, you can begin with online shops like Etsy where you can set up your account. Setting your account at an online shop also eliminates worrying about the shipping costs.

Jewelry business startup much depends on the type of business. A brick-and-mortar store will cost more to rent and maintain the overhead costs during the startup phase. A jewelry store concept requires extensive planning.

In case if you miss this: Profit in Dry Fruit Business in India .

Jewelry business startup cost.

Investment depends upon a lot of factors. Consider the following circumstances:

1) Retail space: will cost you anywhere between 15 – 20 lacs for a 500-800 sq ft store.

2) Range of jewelry: What variety of jewelry are you planning to offer to your clients? Silver, Gold, or Diamond jewelry? Range of silver and gold along with Diamond jewelry will cost you a minimum of 1Crore.

3) Marketing and advertisement: You need to invest a good amount in the marketing of your new business.

4) An all-round setup featuring gold & diamond jewelry requires or more than 1Crore.

5) A small setup with limited stock excluding diamonds will still cost 50 – 90lac.

Your setup may not be a large one, but the gradual learning will help u grow with time and resources

Following are the tips to start a jewelry business:

  • Try to think of the market when you’re designing and do your research and
  • Always try to improve and change things
  • Stay in contact with your customers
  • Check out the competition
  • Pick the right markets
  • Starting a business online has never been easier or more affordable
  • Start your business with minimal investment

Keep in mind that starting a business is a time-consuming task, even if it’s just a side hustle. If you’re serious about your venture, make it a priority to carve out enough time in your schedule to dedicate toward launching and managing your business, even if that’s just an hour at the end of the day to work on a piece of jewelry, create a few social media posts, or check up on your sales reports or marketing performance.

All told, starting a business can certainly feel overwhelming; but if you think of creating your jewelry and selling it to customers who’ll enjoy your pieces as a labor of love, you can’t go wrong.

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Tata Capital > Blog > Loan for Business > How To Start A Jewellery Business In India?

How to start a jewellery business in india.

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Do Indians love jewellery? According to a report, Indian households have held close to 25,000 tonnes of gold, mostly in the form of jewellery. So, one thing is for sure. Indians have been and will continue to purchase jewellery. So, can starting one's own jewellery business be a good idea? But how to start a jewellery business is something where people always get stuck. 

Moreover, numerous jewellery startup businesses have emerged these days. Most of them follow the path of an online jewellery business in India and pretty less of them move to the brick-and-mortar version. However, in both scenarios, the jewellery business holds quite a big potential in the Indian market. 

Before delving into questions like “how to start a gold jewellery business in India”, “what is the process of starting a jewellery business” or “what’s the success strategy of a jewellery startup”, here is a brief on the types of jewellery business in India

Jewellery Business Types

  • Brick-and-mortar business 
  • Online jewellery business
  • Gold import and trading
  • Jewellery making business 

So, among these jewellery businesses which ones can be more profitable? Well, that can depend on how one plans for the business and the overall strategy and execution of growth plans. These can be different for each of the jewellery business types. 

  • Brick-and-mortar jewellery store

Starting a retail jewellery outlet can be more expensive than an online jewellery store. However, Indians like to experience the things they are buying before making an actual purchase. Therefore, this type of jewellery business might be even more profitable than others. 

On the other hand, there can be accentuated costs associated with running a business in a brick-and-mortar model. So, how to start a jewellery business this way? The answer is that the entrepreneur would need a big push in terms of finances in the form of credit or funding. They can get this help through companies like Tata Capital which can provide easy business loans with smart and stress-free repayment options. 

  • Online jewellery business 

Starting an online jewellery business can be less capital-intensive than a brick-and-mortar model. These jewellery businesses can also reduce their overall making charges and overhead costs because the spending on aspects like rent, store-based management and sales staff, and other housekeeping and maintenance requirements are almost nil. But the most important part comes at the beginning. 

So, how to start an online jewellery business in India? One mistake entrepreneurs make is concentrating only on the product and less on the marketing aspect. However, having an adequate marketing budget at the initial stage of starting a jewellery business can help generate brand identity and strength more than ever. It can then, also become easy to rationalise the market acceptance of the product and serve the potential customers accordingly. 

Another aspect of looking at this can be, “how to start a jewellery business online”. Meaning, an entrepreneur can first test the market through the online route and then open a store. However, whether it is a physical or a digital store adequate financing can help the entrepreneur realise the dream. 

  • Gold import and trading 

Many answers on how to start a jewellery business in India. But there is another dimension to this as well. Instead of jewellery manufacturing or selling jewellery online or offline, one can also engage in the import of gold and gold trading. However, though less capital intensive, these businesses might require finances to support them through the following processes. 

Import of gold would require a ready sum of finances available with the company to pay for storage, logistics and cross-currency payment.

If engaged in gold trading, the trader might require adequate finances to place a margin while putting trades. 

With both aspects requiring finances, having lending support from Tata Capital can help you realise your dream faster. 

How to start jewellery business in India? Or. How to start a jewelry business online? More importantly, does that involve making the jewellery, as well? Manufacturing jewellery involves processes like, purchase of gold, filtration, heating, moulding, testing, packaging and storing. It is important for each of these processes to go well for making saleable jewellery. However, for each of these processes, the entrepreneur needs funds. This can help the business purchase and maintain inventory for the processes. 

Therefore, the requirement of funds in the form of credit can help the jewellery business develop a sturdy foundation. 

So, the answer to this question, “how to start jewelry business” or “how to start a jewelry business online” can depend on the type of business the entrepreneur is aiming at. However, the more important part is financial readiness that can be built initially by availing credit facilities. 

Tata capital can be an entrepreneur’s perfect dream partner, with its pre-approved business loan facility, pocket friendly rates and easy repayment options. With its structured EMI plans entrepreneurs can focus on “how to start jewelry business” rather than “where can one draw funding from.”

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How to Start A Jewellery Business In India

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Gaurav Singh Rawat

  • May 12, 2023
  • 11 Min Read

How to Start A Jewellery Business In India

Learn how to start a jewellery business in India in simple steps in the following article. Read to know all about it.

India has created one of the largest markets of Jewellery in the world with a tremendous appetite for gold and diamond. India is also the largest importer of gold and other gems and contributes around 6-7% of the Indian GDP. The demand for gold is only increasing with each day which means that the jewellery business is definitely great to set foot into.

If you too are interested in starting your own business in Jewellery, here is how you can do it.

Types of Jewellery Business

The Indian Jewellery Business can be divided into different types as follows:

  • Retail Jewellery Shops
  • Online Jewellery Retail
  • Gold Trading
  • Gold Importers
  • Jewellery Manufacturers

Step By Step Process To Start A Jewellery Store

Follow these steps to start a jewellery store in India.

Do Proper Research

Before starting out on the franchise, it is essential to do your research well and know everything about the business. You must decide on a niche and have knowledge about the products you will sell, operations and market. 

Learn about the market and understand what should be your objectives and business goals.

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Study the Competition

Before you start a business, you must always scan the market and find out about your competition. Knowing your competitors, you can strategise your marketing plans accordingly by evaluating their strengths and weaknesses. You can come up with great ideas for your business and attract customers. 

Also Read: HOW TO START A TIFFIN SERVICE IN INDIA?

Choose the Location

This is an important decision to make while looking for a location for your business. The location can make or break your business therefore it is of utmost importance that you select an area which is accessible to all customers and has a big footfall. The showroom should have better accessibility to the customers and also offers easy parking. 

Location

You must invest in the infrastructure of the showroom which would play a vital role in grabbing people’s attention. Inspect everything about the property like cooling, heating, plumbing, electricity and also internet services and only once you are satisfied, you can approve a location. 

Capital requirements

To start any business you require a lot of money and this is more important when you are starting a jewellery business whether you are buying a franchise or starting your own business. You would require a lot of capital as an investment hence the funds are crucial. 

You would require money for inventory, store set-up, employee salary, working capital, franchise financing, royalty fees and others. 

Select the Franchise Partner

Get the right franchise for your business. For this create a list of all the potential companies and brands and get a third-party lawyer on board or even a franchise consultant to help you make a better-informed decision.  

Franchise Partner

Understand the proposal for each of these companies, their disclosure document and the agreement copy. Study all the pros and cons of working with them and get the legal support and trade rights for the franchisor for the jewellery store.

You can also negotiate on the profit-sharing percentage and royalty fees. You can go ahead with the franchise partner only once you are satisfied.

Create, Share, Collaborate

Work with your team in real-time. create documents together and share the same on Whatsapp, Gmail, etc.

Obtain all the legal permits.

Whenever you start a business you have to acquire industry-specific licenses and government permits from the government to run and manage the activities. Know all the necessary permits and licenses that you must have and apply for them.

Customers today purchase jewellery that has a hallmark on it for which you must have a BIS license which is granted to a store if the brand has many showrooms. 

All jewellery businesses must also obtain their GST registration to run their business smoothly in India.

Also Read: HOW TO START A COURIER SERVICE BUSINESS IN INDIA

Hire Efficient Staff

No matter how big your store is and where it is located, if you do not invest in good and talented staff, you would not be able to run a business. You must hire great craftsmen who are able to execute all the innovative designs.

Hire Efficient Staff

You must also focus on skilled salesmen who would understand the need of people and show them designs as per their needs and requirement and also convinces them to purchase.

Bank Account for Jewellery Business

Opens a bank account in the name of the shop. This would also help you apply for a loan for which bank statements are also needed. Many banks also offer various schemes that you can make the most of. A separate bank account would help you in keeping your accounts and records straight.

Marketing of The Business for the Jewellery Business

As soon as your business is ready to operate, you must start marketing it aggressively both offline as well online. You must promote your business and create a demand for your jewellery in the market. You can promote your business in newspapers, TV ads, hoardings, theatre ads and more. 

This is how to promote the jewellery business in the best way possible.

How To Start Jewellery Business At Home

If you are thinking about how to start an online jewellery business in India, then here are the top steps.

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Hindi, English, Bangla, Urdu, Malayalam, etc. Now Work Comfortably in Your native language.

Decide how you want to sell jewellery at home.

One of the most important decisions is for you to decide is what kind of jewellery you want to sell, whether it is artificial or real. Think about all the pros and cons and each of them and make a well-informed decision.

Start a Wholesale Business

You can start a wholesale business in which you would be purchasing jewellery wholesale at a cheaper price and then you can quote your own cost. But in this kind of business, you would require a lot of investment and also a place for storage.

Wholesale

Become a reseller

jewellery business does require a lot of money as an investment but if money is something that you are struggling with then you can start a business as a reseller. You can make your own margin while doing so.

Sell on Online Platforms

Rather than buying a space or renting one out to sell the jewellery, you can also sell it online . You can either create your website and a page on social media where you can showcase your jewels and people can purchase from there.

Register a Creative Name for Your Business

Once you have decided on what your niche is going to be and what kind of jewellery you want to sell, it is time for you to pick a nice and catchy name for your business. A name that would catch people’s attention and helps you sell a lot.

Also Read: HOW TO MAKE AN ATTENDANCE SHEET IN EXCEL

Understand the Latest trends in the Fashion Industry

It is of utmost importance that you keep your business relevant by staying updated on the latest trends and fashion so that you can update your collection as per that and what people are demanding. This would truly help you in being on top of your game.

Launch a Website

All businesses need a good website so that people can rely on your business. It is more important for a business like jewellery hence, you must create a website for your brand where people can know your story, know who you are and connect with your brand and products.

Market your Business

To run any business marketing is very important. You need to know how and where to sell your site,s. You need to spread the word and do the right advertisement and marketing for your brand to get the attention of as many people as possible.

Business Marketing

How To Export Jewellery From India

To export jewellery from India, you would require a few documents and here is the list:

 Permanent Account Number (PAN) 2. Authorized Dealer Code (AD code) 3. Goods and Services Tax Identification Number (GSTIN) 4. Importer-Exporter Code (IEC) by DGFT 5. PAN-based Business Identification Number (BIN) from the Customs departments 6. Registration cum membership certificate (RCMC) by GJEPC 7. Certificate of Origin 8. Certificate of Insurance

Apart from these documents, you would also require a few more which would be dependent on the shipping mode and the importing country.

GST On Gold

GST influences gold to a great extent. GST on gold is different based on different levels, rights to purchasing and manufacturing. GST on gold is applied to both supply and manufacture of gold ornaments. A GST of 3% is charged on gold in India. Moreover, jewellers charge 5% of the price as GST making charge.

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How Lio Can Help You Staring A Jewellery Business

When starting a business in jewellery, expect a lot of lists, numbers, contact details, cash transactions and other such things to become your life. You would need to track these and have them with you at all times. So how do you do that?

You can’t carry all this or have them with you at all times, right? Wrong. You can have all this information and much more and carry it in your pocket at all times. Thanks to Lio.

Lio is that one app where you can store and organise all kinds of data. No matter what information you want to save, you can do it over here. It is here to put your life in order in the most hassle-free way.

There are several features and all make the use of the application very easy and helpful. You can add photographs, download your documents and folders, dedicate one folder to each piece of information, collaborate and share with others and lock the information.

Lio is definitely for the win and using it for your business is only going to make your journey smooth and easy to track.

Step 1: Select the Language you want to work on. Lio on Android

Choose from 10 Different Language offered by Lio

Step 2: Create your account using your Phone Number or Email Id.

Create Account using your Phone Number or Email Id in Lio

Verify the OTP and you are good to go.

Step 3 : Select a template in which you want to add your data.

Choose from 60+ Templates offered by Lio And Start Adding Your Data

Add your Data with our Free Cloud Storage.

Step 4: All Done? Share and Collaborate with your contacts.

Share you files with friends and colleagues

Frequently Asked Questions (FAQs)

What is the profit margin on jewellery.

42% to 47% is the profit margin on jewellery.

How Much Money do I Need to Start a Jewellery Business?

The jewellery business requires a lot of money. It is advised for you to take a big hefty loan to run a business smoothly.

Is the Jewellery Business Profitable in India?

This is definitely a profitable business in which you can make a lot of margins and excel in your business.

What Type of Jewellery is Most Profitable?

Fine jewellery is an incredibly lucrative market, with costs per item being far higher than that of costume/fashion alternatives.

Which Gold is Best for Jewellery?

22Kart gold is best for jewellery making.

Which Metals are used for Making Jewellery?

Gold, platinum, silver, palladium, titanium, and many more are used in the jewellery-making process.

A jewellery business is definitely a great business idea if you have a lot of money or can arrange for a good investment for the business. If done right, you can be making a lot of profit and excel at it. Just keep in mind to be done with all the formalities especially legal and regarding the government.

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HOW TO START A JEWELLERY BUSINESS IN INDIA

Written by Suraksha Prasad                                                                 August 19, 2021

Prominently the Indian jewellery inspires passion unlike any other object of desire. As of January 2021, India’s gold and diamond trade contributed ~7.5% to India’s Gross Domestic Product (GDP) and 14% to India’s total merchandise exports. The gem and jewellery sector is likely to employ ~8.23 million persons by 2022, from ~5 million in 2020. Based on its potential for growth and value addition, Indian jewellery is unique in its design and workmanship. The art of making beautiful ornaments, with delicacy and acumen, has been developed throughout historical times. Jewellery is made for almost all the parts of the body and it is and it is also designed to match with the attire and to make jewellery more attractive, it is topped by diamonds and various types of gems.

Every woman in India loves to wear at least a small piece of gold jewellery either in the form of glittering neckwear ornament, or dangling earrings or exquisitely crafted bangles. Even men wear simple gold ornaments like rings, bracelets and chains. Thus, we can say that everyone has been moved by the beauty of gold jewellery and it has become a part of our culture and tradition.  

The rich history and cultural heritage of gems and jewellery together with an enduring attraction towards gold have contributed to the growth of the jewellery industry. India has well-established capabilities in making hand-made and machine-made jewellery in traditional as well as modern designs. The Indian jewellery retail sector continues to be dominated by unorganized jewellers. There are over 2.5 million jewellery shops in India and most of them are family-run. However, with the  Indian consumers becoming more fashion and quality conscious, retailing in the Indian jewellery sector is emerging stronger with various big companies like Tata, Thangamayil, Kalyan, Malabar Golds, Voylla, Aisshpra and so on opening multiple stores across the country. The average customer now wants designs that are unique and contemporary which have generated a lot of franchise business opportunities in the jewellery segment.

Jewellery Manufacturers:

If you are interested in the jewellery segment, get an idea about how the jewellery industry functions. The risk factor might be less when it comes to the business of a franchise outlet, but it requires foresight to go through all the details. There requires a paramount investigation before starting a  jewellery business in India like Aisshpra Gems and Jewels, they are 3rd Generation Jewellers, established in 1940. For the last 78 years, the Group has been providing exceptional jewellery pieces and unmatched service to their customers.70 years of India and more than 78 years of the Hari Prasad Gopi Krishna Saraf Group, resulted in the formation of its evolved identity AISSHPRA GEMS & JEWELS. The fundamental existence has been revamped to cater to the needs of the newer audience in and around Uttar Pradesh. The jewellery at Aisshpra is largely for the masses with gold, diamonds and gemstones dominating the entire range of inventory. There is also a fair amount of silver jewellery and artefacts and soon Aisshpra is also starting a bit of fashion jewellery in response to the needs of the local consumers. Aisshpra launched its forthright campaign “Parivartan ki aur Hamara Kadam” which educated the local masses that Hallmarking needs to be embraced before it becomes a mandate. The call of 100% Hallmarking = 100% Buyback with an option of 18K Hallmarked Gold Jewellery received appreciation and acceptance by their customers and a big mind-gap was bridged for the industry as a whole. It also positions Aisshpra as a Brand of Trust, Integrity & Ethics and the region's premier jewellery player that talks the language of the industry.

Step by step process as to how to start a jewellery making business

In India we can get into the jewellery business by way of Retail Jewellery Shops, Online Jewellery Retail, Gold Trading, Gold Importers and Jewellery Manufacturers, etc. But in this article, we will primarily discuss retail jewellery shops. Retail jewellery shops are in India is very popular and research has shown that Indian consumers are less focused on buying branded jewellery. To start a retail jewellery business in India

we need to follow the below-listed steps:

Business Registration for

  Jewellery business;

The first step in starting a jewellery retail business is to come up with a brand name for the retail business, get a Trademark for the business, get a website for the Business and Get the business registered as a private limited company, partnership, and LLP (Limited Liability Partnership), One can also start your business as a sole proprietorship and partnership firm. The Person should also note that registration and licenses may vary from state to state, therefore it is recommended to check with rules and regulations of the respective state.

Jewellery businesses tend to have large turnover (Turnover in excess of Rs.1 crore) easily. Hence, it is recommended that jewellery businesses be registered as private limited companies to enjoy the benefits of limited liability protection, easy transferability and more. Further, by incorporating a private limited company for the jewellery business, funds in the form of debt or equity can be easily raised.

Different business structures have their own form of registration requirements, but an aspect that remains common to all forms is the Shops and Establishment License which is given by the inspector of that area. All businesses are required to be registered under the Shops and Establishments Act with the inspectorate of that area. This must be done within a month’s time of setting up the business, subsequent to which a statement is to be issued to the inspector.

The processing fee for this license is usually between 125 rupees to

12,500 rupees, depending upon the number of employees and manpower you are employing

for the business. A license for a jewellery business in India shall be issued immediately if all

the details in the application are accepted.

Registration of

Jewellery store in Retail :

Different business structures have their own form of registration requirements, but an aspect that remains common to all forms is the Shops and Establishment License which is given by the inspector of that area. All businesses are required to be registered under the Shops and Establishments Act with the inspectorate of that area. This must be done within a month’s time of setting up the business, subsequent to which a statement is

to be issued to the inspector.

For a physical shop, one needs to get his business registered under the Shop

and Establishment Act.

If his per year turnover crossed 5, 00,000 rupees then VAT or CST (between the states) registration must be done with his local sales tax office. From 1st April, he will need a GST registration if his turnover is over INR 20, 00,000 per year.

A Sales tax number is required for those who are selling retail jewellery. It can be obtained by contacting the Department of Revenue sales tax division. This number also permits jewellery stores to buy jewellery at wholesale prices

without paying sales taxes

Once VAT registration is obtained, monthly or quarterly VAT returns as applicable must be filed by the business on time to avoid penalties. 

Opening A Current Account and Tax Registration

To organise financial records separately we need to open a separate bank account for jewellery stores. This helps in getting cash credit or loans from banks or financial institutions.

Before getting sales tax registration, we must open a bank account with any private or PSU banks, as the bank statement of the venture is a mandatory document to get registered with the sales tax department.

One can start a retail jewellery store as a proprietor or partnership firm or private limited company or LLP. The business structure depends on the size of his business. He can also start as a proprietor or partnership firm and then convert it to a private limited at a later point of time once business turnover shows improvement.

 A service tax registration number and an AT/CST number along with a letter from a CA stating the nature of our business, letterhead having the firm’s name and address, stamp in the name of the  Proprietor.

 After submitting all these documentation and registration copies to the bank, we can obtain a current account for our business. We are required to have a minimum bale ranging from five to twenty-five thousand in this account.

 Permanent

A. Account Number or PAN

If a person has started as a proprietor, then there’s no need to apply for a separate PAN card in the name of his business. But, if his jewellery store is of nature other than proprietorship business then, he is requiring a separate PAN card in the name of the business.

Documents Require for PAN Card for Indian Company

Indian companies applying for a PAN card have to submit the following documents along with the application form:

·         Proof of identity/proof of address:

·         Copy of Certificate of Incorporation

·         Copy of No Objection Certificate issued by Ministry of Corporate Affairs.

B. BIS License for Selling Hallmark jewellery:

A jeweller who’s desirous to sell Hallmarked gold jewellery/artefacts is required to obtain a licence from BIS for any particular premises of a jewellery store. The licence is granted to a jeweller for a particular premise if the application in prescribed format along with necessary documents is found in order and payment of requisite fees and signing of an agreement for operating the licence by the jeweller jointly with BIS. In case the jeweller is

also desirous to sell Hallmarked silver jewellery/artefacts another licence shall be obtained from BIS by submitting a separate application and agreement.

C. GRANT OF CERTIFICATE:

Any jeweller willing to obtain a Certificate of Registration for Selling Hallmarked Jewellery/artefacts shall apply with self-certified copies of documents listed below from (a) to (e) with the online application or submit hard copies to the Branch office of BIS having jurisdiction of the area where the jeweller is located, with the application. Registration is granted to the applicant if the application is found to be complete with all necessary documents and fees enclosed within five working days.

Proof of establishment of the firm or company (Any one of the documents given below)

1.      Certificate of Registration issued by Registrar of companies along with a

memorandum of articles.

2.      Registered Partnership Deed in case applicant is a Partnership Firm.

3. Certificate from a Chartered Accountant if the applicant is a

D. Proprietorship Firm.

Proof of address of firm's premises (Any one of the documents given below)

·         Registration with State Government Authority/ Trade Licences

·         GST registration certificate.

·         Income Tax Assessment Order.

·         Latest Property tax receipt.

·         Rent agreement with last rent receipt.

·         Sale/ Lease Deed agreement.

E. Proof of Identity of the signatory

·         Aadhar based verification/ e- signature

·         Self-certified copy of any one of the following documents like identity proof

of signatory on the Application: - Aadhar Card -

Driving Licence - PAN card - Voter Identity card - Passport - Identity

A certificate with photo issued by Gazetted Officer on official letterhead.

 Map indicating the location of premises from nearest landmark Location map of premises from some nearest prominent landmark for each outlet, as applicable (illustrative only).

F. Proof in regards to an annual turnover

·   Self-certified copy of GST returns of the previous financial year.

·  If the firm is new, an undertaking from the firm with the expected turnover

and assurance to submit GST return after completion of the current financial

year and deposit the difference as per actual turnover

Registration Fee

The government has notified new guidelines for BIS Hallmark Licence Fees.

The license fee will now be known as Registration fees and it will be based on

turnover in place population.

According to new guidelines following the change in BIS hallmark license

fees for jeweller’s turnover as below:

Turnover up to Rs. 5 cr – Rs. 7500

Turnover between Rs. 5 cr to Rs. 25 cr – Rs. 15000

Turnover between Rs. 25 cr to Rs. 100 cr – Rs. 40000 and

Turnover above Rs. 100 cr – Rs. 80000

*This fee is for a period of 5 years.

After the grant of a licence, the jeweller has to follow the terms and conditions mentioned in the agreement. Deviations in the purity of precious metal (gold/silver) and observance of operations not in conformance to stated

requirements may result in the cancellation of the licence. Proceedings for penalties may also be initiated by BIS.

Marketing of the business for jewellery business

As soon as the Owner commences business operation, it is necessary to start marketing business using both offline and online medium as it will help in promotion and creating demand for his jewellery products. Jewellery shops are generally promoted by newspaper advertisements, TV ads, Hoardings and

Theatre advertisements etcHe needs to make the right choice depending on his budget so that he can get higher returns.

Managing the Business for jewellery business

After commencing the business, he must obtain tools like the point of sale and billing software, accounting software, inventory management software and customer relationship management software for managing business smoothly.

He must also secure security for the jewellery shop.

Bottom line

Start your jewellery business with a well-thought plan into mind that will help your

business gains profit. I hope this article will be helpful if someone is really

looking forward to starting a jewellery business in India and is keen to understand

what you are getting into. The franchise’s business expertise and brand

strength will provide leverage to your jewellery store to perform much better.

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How To Start A Jewellery Business In India

Alright, let’s strip the fluff and get down to the nitty-gritty of starting a jewellery business in India.

You want to sell jewellery?

You better be ready to deal with more than just shiny rocks and metals.

In this article…

Get Your Head Out of the Clouds and Do Your Homework

You think jewellery and you think sparkle, glamour, and gold, right?

Well, think again. It’s not all glitter and gold.

You need to get your head in the books and research like you’ve never researched before.

You gotta know what’s hot, what’s not, and what’s about to be so freaking cool that everyone will want a piece of it.

Business Plan: Your Blueprint to Not Screwing Up

Don’t even think about winging it.

You need a business plan so solid it could double as a blunt instrument.

This thing should cover your ass six ways to Sunday, from who you’re selling to, to how you’ll avoid losing money like it’s going out of fashion (which, let’s be honest, it always is).

Materials: The Good, The Bad, and The Ugly

If you’re going to sell jewellery, you better be sure it doesn’t turn your customer’s skin green (unless it’s the Hulk cosplay community, then, by all means, go for it).

Source quality materials.

Make sure you know where your stuff is coming from, and that it’s not being dug up by underpaid workers in some godforsaken hole in the ground.

Design & Manufacturing: Where the Magic Happens… Or Doesn’t

Get yourself some killer designs and a way to make them without wanting to tear your hair out.

Whether you’re handcrafting every piece or mass-producing, your designs should be as original as that one friend who insists on telling you about their dream from last night.

Jump Through the Hoops of Bureaucracy

First off, understand that starting a jewellery business isn’t just about the bling. It’s about getting cozy with regulations and paperwork. You’re going to deal with more red tape than a gift-wrapping marathon during the holiday season.

BIS Hallmarking:

In India, the Bureau of Indian Standards (BIS) is the holy grail for jewellery certification.

Getting your jewellery BIS certified means your products are as legit as it gets, not some metal painted gold with a lead paintbrush. It’s a trust badge that tells your customers, “Hey, this isn’t going to turn your skin a funky color.”

GST Registration:

You can’t just sell jewellery and not pay the piper. GST registration is a must unless you’re running an underground operation, which spoiler alert, will land you in a whole lot of trouble.

The Goods and Services Tax is like that one relative at family gatherings who you can’t avoid; better to just get on their good side.

Craft Your Policies:

Terms of service, return policies, privacy policies — these aren’t just fancy words to slap on your website.

They’re contracts between you and your customer that say, “I’m not a fly-by-night scam artist.”

Trademark Your Brand:

If you’ve got a brand name that sticks, trademark it. Otherwise, two months down the line, you might find your designs selling under someone else’s banner at a street market, and there’s not a damn thing you can do about it.

Quality Control:

Set up a system to check your jewellery for quality because selling shoddy goods is a one-way ticket to Crash-and-Burnsville.

There’s no faster way to kill your business than to have it known for products that fall apart faster than a house of cards in a tornado.

Labor Laws and Safety:

If you’re employing people, you’ve got to treat them right. That means understanding labor laws, setting up proper contracts, and making sure your workshop isn’t a death trap.

Get your business insured because sometimes shit happens — like a flood, or a robbery, or a freak hailstorm that decides your shop window looks better shattered.

Export-Import Code (IEC):

Planning to sell outside India? You’ll need an IEC from the Directorate General of Foreign Trade (DGFT).

Because nothing says ‘international’ like another form to fill out.

E-Commerce: Because Brick and Mortar is So 20th Century

Get online. If your website looks like it was made by your nephew in the ’90s, fix it. Now.

It’s the 21st century, and if your business isn’t online, does it even exist? Selling jewellery in a physical store is fine if you’re living in the ’90s and love paying rent higher than the Empire State Building. But let’s get real — e-commerce is where it’s at.

Set Up an Online Storefront:

Launching your online store is like claiming your little piece of digital real estate.

Platforms like Shopify, WooCommerce, or Magento can get you up and running faster than you can say “Where’s my shopping cart?”

Make it sleek, make it sexy, and make it so user-friendly that even your grandma can order a necklace without calling you for help.

Social Media Marketing:

Instagram and Pinterest are the digital runways for your bling. It’s where your jewellery isn’t just jewellery; it’s a lifestyle.

Post stunning photos, create stories that sell not just a product, but a dream, and watch as the hearts (and sales) roll in.

Influencer Collaborations:

Get chummy with influencers whose followers might as well have their credit cards glued to their hands.

When they say “jump,” their followers don’t just ask “how high?” — they leap into the stratosphere. A shout-out from them can have your pieces selling faster than cold lemonade in a heatwave.

Optimize your online content so that when someone Googles “handcrafted silver necklace,” they land on your page and not a page telling them how to make one out of aluminum foil.

Keywords are your best friends; treat them well.

Online Payments:

Set up secure online payment systems. Trust me, nothing nukes a sale faster than a customer having doubts about the security of their credit card info.

Figure out shipping because unless you’ve invented teleportation, those necklaces aren’t going to deliver themselves.

And if you have, well, then jewellery might not need to be your business.

Customer Service Online:

Have a system to deal with customer concerns because if someone’s irked about a late delivery, you want to fix it before they go all keyboard-warrior on you.

Data Analytics:

Use data analytics to track what’s selling like hotcakes and what’s just sitting there like an awkward guest at a party.

Then adapt.

This isn’t “Field of Dreams.” Just because you built it doesn’t mean they’ll come.

And social media is your new best friend—use it to charm the pants off potential customers (figuratively, of course).

The Storefront: Your Stage to the World

Choose a location for your shop where people actually go.

And if you decide to sell online, for the love of all that sparkles, make sure your photos don’t suck.

No one buys a necklace that looks like it was photographed with a potato.

Marketing: Scream From the Rooftops (But, Like, Classily)

Create a brand that makes people feel something other than bored.

Get creative. Get weird.

Make sure your marketing doesn’t put people to sleep .

Money, Money, Money: Keep It Flowing

Here’s the dirty little secret about business that no one tells you: it eats money faster than a kid with a bag of Halloween candy.

So, managing your finances isn’t just important; it’s the difference between “I’m the king of the world!” and “Why is my electricity cut off?”

Cash Flow is King:

Forget about profits on paper; if you can’t pay the bills today, you’re as screwed as a diet at a buffet.

You want a cash flow so smooth, your accountants are practically sliding out of their chairs.

Budget Like a Boss:

Know where every damn penny is going. And I mean every penny.

That doesn’t mean you squeeze a dollar so hard George Washington’s eyes pop out, but you need to be on top of it like a cat on a hot tin roof.

Pricing Strategies:

Don’t just slap prices on items like you’re playing Pin the Tail on the Donkey.

Your prices should reflect your value, your brand, and your sheer awesomeness, while still making sure you’re not accidentally giving away your grandmother’s heirloom pearls for the price of a Happy Meal.

Investment: Not Just a Fancy Word:

You gotta spend money to make money. Sounds like a cheesy line from an 80s movie, but it’s true.

Invest in good materials, marketing, and maybe even a good espresso machine for those late nights.

Just make sure you’re getting a bang for your buck, or you’re just throwing it into a bonfire.

Emergency Funds:

Stuff happens. You might get hit with a surprise tax, a shipment might go missing, or your best jeweller decides to run off and join the circus.

Have a safety net, because when you hit a bump, you don’t want to go flying through the windshield.

Get Financial Advice:

Unless you’ve got Warren Buffett on speed dial, get some financial advice.

And no, I don’t mean your Uncle Jerry who once won the lottery and bought a llama farm. Real advice that’ll help you not just survive, but thrive.

Keep an Eye on the Horizon:

Trends change, markets shift, and if you’re not one step ahead, you’re actually two steps behind. Watch for the signs and be ready to pivot like you’re in a game of Twister.

In the world of jewellery business, or any business for that matter, money isn’t just something; it’s everything.

But it’s not about hoarding it like a dragon on a pile of gold.

It’s about keeping it moving, growing, and working for you so that when you reach the top of the mountain, you can look down and say, “Yeah, I did that.”

And maybe, just maybe, you’ll be wearing a kickass ring that you made when you do it.

Never Stop Learning

Finally, don’t rest on your laurels.

The jewellery game changes faster than fashion trends in a teenager’s TikTok feed.

Keep learning, keep improving, and for heaven’s sake, keep up with what’s actually selling.

Starting a jewellery business in India is a marathon, not a sprint—unless you trip over the starting line, then it’s just a faceplant.

Do it right, and maybe, just maybe, you’ll end up with something that lasts longer than most celebrity marriages.

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About the Author

Mani Karthik

Entrepreneur, Mentor & Blogger. I help business grow & scale. Have helped 15+ companies scale in US, Middle East and India. I share everything I learned on this blog, so that you benefit. Here’s more about me .

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You are currently viewing How to Start a Jewellery Business in India? (2024)

How to Start a Jewellery Business in India? (2024)

  • Post author: Kanakkupillai
  • Post published: July 26, 2021
  • Post category: Business Tips

Jewellery Business in India

India has a tremendous appetite for gold and diamond jewelry – creating one of the largest markets in the world for jewelry. Further, India is the largest import of gold in India and the gems and jewelry sector contributes nearly 6-7% of the Indian GDP – making it a sector. With India having a booming middle class and growing economy, the demand for gold is set to further raise in the coming years. Therefore, the jewelry business holds a lot of promise in the coming years.

The first step in starting a jewelry retail business is to come up with a brand name for your retail business, Get a Trademark for your business, Get a website for your Business, and Get your business registered as a private limited company , partnership, and LLP(Limited Liability Partnership). In this article, we look at the procedure for starting a jewelry business in India .

Globally, India is the largest consumer of gold. The gems and jewelry market in India is home to more than 500,000 players, with the majority being small players. Therefore, starting a jeweler business is one of the most profitable opportunities for beginners.

key Takeaways

  • The first step in starting a jewelry retail business is to come up with a brand name for your retail business, Get a Trademark for your business, Get a website for your Business, and Get your business registered as a private limited company.
  • In this article, we look at the procedure for starting a jewelry business in India.
  • Hence, all jewelry businesses must have a VAT registration from the local state tax department.
  • Each BIS license to sell hallmark jewelry is given for a particular retail premises or sales outlet.

Types of Jewellery Business

India’s domestic gems and jewelry industry was estimated to have a market size of about Rs.251,000 crores in 2013 with the potential to grow to Rs.500,000 crores by 2018. The entire gems and jewelry industry is set to witness a very healthy Compounded Annual Growth Rate (CAGR) of about 15.95% making it very attractive for investments. The Indian Jewellery Business can be divided into different types as follows:

  • Retail Jewellery Shops
  • Online Jewellery Retail
  • Gold Trading
  • Gold Importers
  • Jewellery Manufacturers

Requirements for Starting a Retail Jewellery Shop

India has over 2.5 million jewelry shops, around 450,000 goldsmiths, and nearly 100,000 gold jewelers. Retail jewelry shops are very popular in India and research has shown that Indian consumers are less focused on buying branded jewelry as they rather prefer local ones more. Further, in India, nearly 96% of all Jewellery retail shops are family-owned small businesses making it an ideal sector for setting up a small business .

Business Registration:

Jewellery businesses tend to have large turnovers (Turnover above Rs.1 crore) easily. Hence, it’s recommended that jewelry businesses be registered as Pvt ltd companies to enjoy the benefits of limited liability protection, easy transferability, and more. Further, by incorporating a private limited company for the jewelry business, funds in the form of debt or equity can be easily raised.

Tax Registration:

The sale of gems and jewelry is taxable under VAT. Hence, all jewelry businesses must have a VAT registration from the local state tax department. Once, VAT registration is obtained, monthly/quarterly VAT returns must also be filed by the business on time to avoid penalties.

Import Export Code:

An Import Export Code or IE Code is required for importing goods into India. However, jewelers must be aware of all the regulations before importing any gold into India. Learn about the procedure for importing gold into India.

BIS License for Selling Hallmark Jewelry:

Hallmarking is the accurate determination and official recording of the proportionate content of precious metal in the article/jewelry. Hallmark is thus an official mark used in many countries as a guarantee of purity or fineness of precious metal in jewelry/artifacts. The principal objectives of the Hallmarking Scheme are to protect the public against substandard, adulterated products and to obligate manufacturers to maintain declared purity standards of fineness.

A jeweler who wishes to sell hallmarked jewelry must obtain a license from BIS for the particular retail outlet. Each BIS license to sell hallmark jewelry is given for a particular retail premises or sales outlet. Therefore, one company that has multiple outlets must obtain multiple BIS licenses to sell hallmark jewelry.

After the grant of the license, the jeweler has to follow the terms and conditions mentioned in the agreement. In case of any deviations in the purity of precious metal (gold and/or silver) and observance of operations not in conformance to stated requirements may result in cancellation of the license and proceedings for penalties.

How To Export Jewellery From India?

Here is a list of the documents you will need to export jewelry from India:

  • Permanent Account Number (PAN)
  • Goods and Services Tax Identification Number ( GSTIN )
  • Importer-Exporter Code (IEC) by DGFT
  • Authorized Dealer Code (AD code)
  • PAN-based Business Identification Number (BIN) from the Customs departments
  • Certificate of Origin
  • Certificate of Insurance
  • Registration cum membership certificate (RCMC) by GJEPC

You would also need a few more documents in addition to these, depending on the shipping method and the import nation.

GST On Gold

GST has a significant impact on metal. Based on various levels, rights to buying, and manufacturing, there are various GST rates for gold . Both the supply and the production of gold ornaments are subject to the gold GST . In India, there is a 3% GST on metal. Additionally, jewelers add a GST-making fee of 5% to the price.

If you have a large sum of money or can secure an excellent investment for the company, starting a jewelry business is unquestionably a great business idea . If done correctly, you can succeed at it and make a lot of money. Just remember to finish all procedures, particularly those that are legal and government-related.

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How to Start Gold Jewellery Export Business

gold jewellery business plan in india

If you are looking forward to start a gold jewellery import export business, then here is the guide to help you out. Refer to all the steps carefully and you will be good to go to start your own business with international clients.

Step 1: Prepare a business plan

A business plan is the initiate step towards establishing a big brand in India as well as around the globe. It helps you analyse what needs to be done and how things will be executed. Your business plan should contain financial planning, management, daily expenses, import export costs, location cost, warehouse charges, transportation expense, labour charges and many more things.

Step 2: Choose your target location, area or country

A suitable location is that, which is accessible through different means of transport. It should have safe and secure warehouses and guarding facilities, since you are going to deal with very expensive goods.

Apart from good access and feasible inventories, it should also have reliable transport facilities. It is highly recommended that you start the gold jewellery export business in the area where middle class and rich people reside, or who can afford the gold jewellery that you are selling.

Step 3: Open a bank account

Since you will be dealing with multiple currencies other than Indian rupees, you need to have an authorised bank account for foreign exchange. The account should be in the name of your company and should be registered with customs.

Here are the list of documents required to open your bank  account for your gold jewellery export business-

  • Ration card

Step 4: License, documentation and registration

When you are planning to start a gold jewellery export business, you need to get all the licenses and permits beforehand to avoid any challenges in the future. You especially need to have an importer exporter code (IEC) to start your business. If you do not have an IEC, then you can not deal with any kind of import export business.

You also need to have a Business Identification Number (IBN) for gold jewellery business. Apart from BIN, you need to have a GSTIN, business registration, insurance policy, establishment registration and other important licenses active.

Step 5: Find your suppliers and buyers

If you do not already deal with business in gold, then you need to firstly find suppliers who will supply you with the best quality gold. Your suppliers should be reliable and trustworthy. You can also participate in trade fairs, exhibitions, buyer seller meet ups, B2B portals and existing jewellery makers to help you in finding the right point of contact.

When your products are ready, look for potential buyers. Invest in marketing and social media promotions to make your products visible.

Step 6: Dispatch and shipment

Once you are ready to deliver your products, read the guidelines and follow the custom clearance process before dispatching your products to the ports and airports. Once you get the clearance, your products are ready to export.

When your product gets shipped successfully, you will receive a payment. The import export of gold needs careful finance management, as it is a high risk business.

Explore more about the import export business and learn the important tactics useful in running your business.

How to Start a Gold Jewellery Export Business? [A Complete Guide]

Gold is a valuable asset for Indians. We not only love to adorn ourselves with gold jewellery but also invest in this precious element for financial support. Moreover, gold is treated with high respect by Indians and is a part of our rich cultural heritage.

Besides, gold has a significant contribution to the Indian economy, and the demand for gold across the country was around 446.4 metric tons in 2020. In the fiscal year 2020, the country imported about 2 trillion INR of gold. A significant portion of gold is imported and exported in the form of gold bars and coins.

So, needless to say, starting a gold jewellery export business in India would be a profitable one because the demand for this precious metal is here to stay. The import-export sector has become popular recently, and many entrepreneurs are stepping into this domain.

However, one needs to weigh all the pros and cons before venturing into a gold jewellery export business.

According to the Gem and Jewellery Export Promotion Council (GJEPC), gems and jewellery exports have seen a significant decline of 25.71% in the fiscal year 2021, which is around INR 1,85,952.34 crore in the financial year 2020-21 .

So, it would be best if you considered both sides of the coin while exploring export business opportunities before it turns out to be a nightmare. Let’s discuss the aspects you need to consider before investing in the gold import-export sector.

How to Set Up an Export Firm?

In this section, we will discuss how you can set up a gold export business in India step by step.

● Step 1: First and foremost, you need to choose the type of business entity, such as a partnership, proprietorship, private company, limited liability partnership, limited company, registered society, trust, or HUF (Hindu Undivided Family). After you have decided your nature of business entity as per your preferences and needs, you need to get your company registered following India’s corporate laws.

● Step 2: Next, you must choose your preferred mode of carrying out the export operations, such as either as a manufacturer exporter or merchant exporter, or both.

gold jewellery business plan in india

● Step 3: Apply for the grant of PAN for your firm. It is essential to obtain your PAN or Permanent Account Number issued by the Income Tax Department of India. You can fill out an online application form here .

This is a mandatory step and is required while opening your current A/C for your firm and also while applying for the IEC number allotment.

● Step 4: Next, and the most obvious, you need to open a current bank account with a bank that is authorised and permitted to deal in foreign exchange. The bank will then issue an AD (Authorised Dealer) Code, which needs to be registered with the Customs.

However, to open a savings or current bank account, you must have chosen a name for your firm or company. You will need the following documents to open your bank account:

a) Photocopy of the PAN number. In case you fail to show the PAN number at the time of opening your bank account, you must submit a declaration in Form 16 if yours is a partnership or a proprietorship firm and Form 57 if yours is a company. This is a declaration in which the account holder states that s/he has applied for a PAN number and s/he would be submitting it to the bank as soon as they receive it.

b) Photocopies of ration card.

c) Recent photographs of the authorised signatories.

There may be a few other documents that you need to submit along with the account opening form, appropriately filled and duly signed by the authorised signatories.

● Step 5 : Once you have opened your bank account and received your AD Code, you need to register with the Goods and Services Tax Department. This is required to obtain your GSTIN (Goods and Services Tax Identification) Number, which you will require while claiming refunds on your taxes. You can register with the GST Department by applying online .

● Step 6: Now comes the most important step of successfully opening an export business . You need to obtain your unique IEC (Importer-Exporter Code), which is mandatory for starting an export business from India (or import business, for that matter). Without this IEC code, no person or body is permitted or authorised to deal in imports or exports of gold jewellery in the country (unless specifically exempted).

The IEC is issued separately by the DGFT (Directorate General of Foreign Trade) and can be obtained by any of the following:

a) Partnership

b) Proprietorship

c) Limited Company

To apply for IEC, the firm must have a PAN, a valid address, and an active bank account registered in the name of the firm. Your firm’s address may also be verified physically by the DGFT after issuing the IEC.

You can fill and submit the online application for IEC here .

● Step 7: Once you have obtained the IEC, you need to register an AD Code at every port from where your goods would be cleared by customs. This step is necessary because the Ice Gate portal’s EDI system won’t permit any shipping bill generation if a registered AD Code is missing.

If you have a valid AD Code registration with the customs, you may also be eligible for government benefits, which you can get credited directly into your bank account.

● Step 8: Next, you need to get your BIN (Business Identification Number), which is based on your PAN. The BIN will be issued by the Customs before generating the shipping bill for clearing your export goods from each port.

● Step 9: You need to register with the EPC (Export Promotion Council) and Commodity Boards for availing authorisation to carry out imports or export operations. Exporters are also required to obtain RCMC (Registration cum Membership Certificate), which is granted by the respective Export Promotion Councils/ Commodity Boards/Authorities/FIEO.

To deal in Gems and Jewellery commodities exports under chapter 71, the GJEPC is the Export Promotion Council. To apply online, visit www.gjepc.org .

● Step 10 : Last but not least, you need to get an E-Sanchit Registration on the ICEGATE portal (Indian Customs Electronic Gateway), which is a national portal of Indian CBIC (Central Board of Indirect Taxes and Customs) providing e-filing services to cargo carriers, trade, and other trading partners via the electronic medium. To avail of the e-Sanchit facility, all IEC holders have to register their IEC on the ICEGATE portal.

gold jewellery placed on red cloth with ear rings

Once you have set up your export firm by complying with all the legal requirements and registrations, you may proceed to begin your operations, which includes the following primary steps:

  • Select Your Product: Keep in mind that the Indian government has banned the export of gold jewellery or medallions beyond 22 carats. This is a huge blow to gold exporters, especially those who used to import gold coins in their pure form, converted them into jewellery with some value addition, and then shipped them out of India. So, you need to select a product for your exports (say gold jewellery) that would contain gold under 22 carats.
  • Select Your Markets: Research the overseas market size and competition, and evaluate the export benefits available for various countries as per the FTP.
  • Find Authorised Suppliers and Buyers: Participation in exhibitions, trade fairs, buyer-seller meets, B2B portals, etc., may help.
  • Procure an Export Order: This can be done by sending samples or a proforma invoice.
  • Start your Manufacturing Operations: This process begins once you receive orders. You can either establish your own manufacturing system or buy goods from other manufacturers.
  • Perform Quality Checks: This is a must for every exporter who needs to get their goods inspected by the authorised person before exporting.
  • Getting an Insurance Policy: It is essential to have a financial backup in case of losses in transit or otherwise because the gold jewellery export s business is quite risky.
  • Dispatch, Customs Clearance, and Shipment: Once your goods are packed and ready, you need to dispatch them to the respective airports/ports for transit. Next, you must abide by all the customs procedures at each individual port and get your shipping bill issued. You may also hire a CHA (Clearing House Agent) for this purpose. Finally, after the customs clearance, your goods are ready for shipment.
  • Taking Care of Your Accounts: The gold jewellery export business involves careful management of your day-to-day accounts because it’s a high-risk business. You may opt for the OkCredit app, which is a digital ledger to track and manage all your transactions, loans, profits, and revenue generation on one platform.

To conclude, you need to do your homework well before exploring gold jewellery export opportunities in India. Otherwise, you may run the risk of tremendous loss. We hope the above tips will help you grow your gold export business successfully.

1) How to Start a Small Restro-Cafe? 2) How to Become a Wholesale Distributor of Jewellery? 3) How to Sell a Product in a Highly Competitive Market? 4) OkCredit: All you need to know about OkCredit & how it works.

Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more! Download OkCredit now & get rid of your bookkeeping hassles. OkCredit is 100% Made in India.

gold jewellery business plan in india

Q. How much does it cost to start the gold export business in India?

Ans. The initial investment could be anywhere between INR 60,000 and INR 1,00,000, depending on the type of company you are starting.

Q. Do I need a license to start the gold export business?

Ans. Yes, you need to apply for a license before starting your gold business in India.

Q. How much time does it take to get your export license request approved?

Ans. It may take up to 6 weeks and more, depending on how quickly you submit the documents and the accuracy of the information.

Q. How to find the best buyer for gold jewellery overseas?

Ans. B2B websites can help you find genuine buyers for exporting gold jewellery from India. These B2B websites are both cost-effective and time-saving since they bring together traders from across the globe. For contacting jewellery buyers worldwide, you can check out the wholesale B2B platforms.

Read the best of business ideas, tips for small businesses, the latest update on technology & more by OkCredit.

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Gold Business Ideas Top 15 Startup Plans For Jewellers

Gold Business Ideas Top 15 Startup Plans For Jewellers

Startup plans for jewellers is useful for you if you are looking for some gold business ideas to invest in gold or want to gather knowledge about gold venture opportunities. Gold is a long-term player in the world in terms of wealth. Gold in profitability can never lag behind as the prices of gold keep on increasing. You will never see the gold in a downward curve. Gold being in high demand provides profitable gold business opportunities in India. Prices of gold tend to rise due to immense demand thus one can surely invest in this business. 

International prices of gold also increase so it is a business of wide scope that is done with high capital investment. While taking advantage of increasing gold prices in the country and its high demand, you can make excellent profits from this business.

Gold Investment Options In India

Table of Contents

  • 1 Gold Investment Options In India
  • 2 How To Start Your Business of Buying And Selling Gold
  • 3 Blogging Gold Mines
  • 4 Gold safe-keeping Idea in India
  • 5 Earn Money from Gold business Online
  • 6 Gold Researcher Plan
  • 7 Best Gold Forums Business Investment
  • 8 Authorized Gold Buying Startup
  • 9 Gold Mining Business
  • 10 Gold Parties Business
  • 11 Pawnshop in India- Become a Pawn Broker
  • 12 Gold Streaming Business In India
  • 13 Reselling Gold StartUp or Raw Gold Sale In India
  • 14 What gold business can I do with gold?
  • 15 Is the Gold business profitable in India?
  • 16 How many types of gold businesses are there?
  • 17 Is the gold business profitable?
  • 18 How many types of gold trading opportunities do I have?

Have you ever thought about how I can become a gold business entrepreneur in India? While investing funds in gold, you can become an entrepreneur and get opportunities to become rich. Small investment, hard work, and creative thinking will help you to become a gold business dealer in India. The gold industry offers you many benefits and you can plan a gold business startup.

How To Start Your Business of Buying And Selling Gold

Here are the best top 15 most profitable and successful business plans to become a gold trader in India.

Blogging Gold Mines

Among the 15 gold business ideas startup plans for jewelers, gold mines blogging is the number 1 best gold trading idea in India. To start the gold blogging venture, you can decide on a platform for yourself from which you can blog. The options you can choose are WordPress, youtube , Blogspot, etc, and start a gold blogging scheme. A proper gold startup plan is to be prepared for your blog so that your target audience can read your blogs and they will then get interested to buy your gold. Write about completing an understanding of a gold venture so that you can guide people who are planning to start a gold business in India.

You must stay consistent and try to meet the requirements of the audience. This way your blog startup in India will grow and you will earn more.  Don’t worry come to the project report bank and you will get business tips, quick tracking of business progress, and learn a lot about business opportunities. Read about all other gold business ideas in India in Hindi at our website.

Gold safe-keeping Idea in India

Gold safekeeping is among the gold business ideas that offer investors the service of gold safekeeping. Gold is an expensive commodity, so people fear getting it stolen. Thus many digitized gold firms offer plans to keep private safes for storing digital gold for free. Additional cost for a gold safekeeping startup is the insurance and storage cost. You can start a safekeeping gold business in India easily because it is somewhat the same as bank lockers. You can start an ethical business in India with this startup by obtaining a license and needed permissions.

Also Read: Article on Top 10 Textile Business Ideas in India.

Earn Money from Gold business Online

Digital gold is the best gold selling opportunity in India. You can place your gold and diamond jewelry online on your gold website and provide the buyers with 100% safe gold home delivery in India. You can sell gold from this showroom of online gold jewelry. Thus gold can be sold in electronic form. Store digital gold now in safe digital lockers. Thus the most profitable gold opportunity in India that doesn’t require land is the gold business online.

Gold Researcher Plan

The researcher is the person who researches gold, promotions, and the latest trends in gold. Being a gold researcher is high profit earning business. You can work as a freelancer for this business. This business has great competition because it is a gold business idea without investment in gold. You can also start researching of gold business full-time by promoting it on social media sites.

Best Gold Forums Business Investment

A gold forum is an innovative idea of a gold startup. This is an online gold selling business in India that begins with questioning and answering, opinion sharing, knowledge in the gold market, and all queries that may come your way. You can hire gold experts and become an online gold dealer in India. Gold Forum’s gold startup idea doesn’t require much capital investment, thus you can start it with proper research.

Authorized Gold Buying Startup

If you want to start an authorized gold purchasing business then you need the permission of the Reserve Bank Of India. Being a capital-intensive business, you have to follow the rules of the RBI-controlled gold market. You can thus buy gold and sell it to jewelers all over the world. A high investment gold business is being an authorized buyer of gold.

Gold Mining Business

You can now become a senior miner of gold because it is the perfect gold business idea. This is a gold mining business that has great liquidity so it is less risky than any other gold venture in India. The gold miners can leverage the prices of gold by increasing gold shares. You can buy gold mining stocks, and sell them with an add-on fee. Therefore stocks encourage the interest of buyers who wish to invest safely and get good returns. The gold mining business is in great demand these days. You can be a senior gold miner in India or a junior gold miner who can start a reselling agency or a mining company.

Gold Parties Business

Gold that is not hallmarked, is difficult to sell. You can host bidding of gold and create a platform for buying and selling gold in India. This gold is sent to refineries or sold to customers who like to collect it as family wealth. So, Do you wish to start the gold business party in India? You can start gold parties small scale business by innovating ideas and growing your business.

Pawnshop in India- Become a Pawn Broker

The drive-through pawnshop pioneering is a successful thought drive. Pawnshops are there in India that are the outlets for selling gold at favorable prices. Pawnbrokers melt the gold and sell it to big businessmen who use it and convert it into 22-carat gold. Now do you want to set up a pawn shop in India or trade it online is up to you. It is possible to start an online gold business in India because so many apps for trading gold in India are there.

Gold Streaming Business In India

When you become an old streamer in India, you can help gold mining share investors to identify viable mines of gold. This is a risky gold startup in India that doesn’t include capital investment but comes with losses. Gold streamers can collect information about gold mining companies and their stocks and deal in mutual funds gold. You will earn income from consultancy fees. You can stream the digital gold units and recycle unmarked gold.

Also Read: Top 50 Small Business Ideas for Women in India in 2022

Reselling Gold StartUp or Raw Gold Sale In India

Being a seller or reseller of gold is a lucrative gold business plan in India. You can sell gold items and offer services by getting profits from your sales. You have to research completely how to start gold selling in India. Start a raw gold-selling business in India and make good profits because businessmen in India want raw gold to sell ornaments in the market.

You can buy old gold that is below 10 carats and melt it down to create raw gold. Gold Smelting Business in India has become popular now.

Electronic Gold Trading 

Indian investors are interested in buying electronic digital gold. Electronically traded funds and gold stocks online help this business become successful. It is risky to sell gold in the stock market because it is difficult to know the technical issues before electronic gold trading investment. A training center can be opened for teaching how to do investments in electronic gold trading.

Become A Goldsmith In India

You can buy a shop or arrange it on rent and become a goldsmith. To run a goldsmith business in India doesn’t need much investment because it is based on your skills of transforming gold into beautiful ornaments and selling it further. You can excel in this business if you have the real talent for creating unique gold designs that no other can. Goldsmith can also work in gold selling brands in India also.

Gold Plated Jewellery Business

People who cannot afford gold, wish to buy gold-plated jewelry. You can make your own designs by establishing a gold-plated business setup and machinery. You also have the option to arrange the designs from different parts of the world so that you can sell them to your customers and make money. Gold plated jewelry plan in India is the best because it doesn’t require a huge investment.

Start a Gold Bar Business

The gold bars are used to create beautiful gold jewelry. You can initiate a gold bar business in India because it is the raw material for ornaments. Along with this, people who wish to invest in gold do demand gold bars in the country. The gold bar opportunity in India is based on high investment so you can start a high scale gold bar business in India after a very good research.

It is completely your choice which business of gold you want to start. One thing that is considered is that gold is a natural resource that is limited so the prices are high. You can explore the best gold business startups and gold trading ideas and choose the best one.

Also Read: Agriculture Business Ideas Top 20 Farming Plans

Frequently Asked Questions about Gold Trading Business In India

What gold business can i do with gold.

You can be a goldsmith, gold streamer, or gold-plated jewelry business in India.

Is the Gold business profitable in India?

The gold business is very profitable in India because it is the desire of every individual who wants to buy gold online and offline.

How many types of gold businesses are there?

There are many types of gold business from being a goldsmith to electronic gold trading to gold blogging.

Is the gold business profitable?

Well, yes. Gold trading is a profitable startup in India because it has huge demand throughout the country.

How many types of gold trading opportunities do I have?

You have many gold trading startups which you can start depending upon the investment you want to make.

4 Replies to “Gold Business Ideas Top 15 Startup Plans For Jewellers”

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How To Start Gold Business In India

Gold is a precious metal that has been used as a form of currency and jewelry for centuries. It’s also used in industry and for other applications. Gold is a valuable resource, and there is a growing demand for it. If you’re interested in starting a gold business in India, there are a few things you need to know.

Table of Contents

HOW TO START GOLD | SILVER | PLATINUM| JEWELLERY| BULLION IMPORT EXPORT BUSINESS IN INDIA | DUBAI

The basics of starting a gold business in india.

  • Identify the right market in India for your gold business. There are a number of different gold markets in India, so it is important to research the specific markets in which you want to operate.
  • Choose the right business model for your gold business in India. There are a number of different business models available for gold businesses in India, so it is important to identify the type of business that best suits your goals and target market.
  • Purchase the appropriate gold assets in India. Gold assets can include gold bullion, gold coins, gold jewelry, and other gold-related products and services.
  • Market your gold business in India. Market your gold business in India through various marketing channels, such as advertising, public relations, and marketing research.
  • Operate your gold business in India prudently. Ensure that you are following all applicable laws and regulations in India related to gold businesses.
  • Contribute to the Indian economy. Supporting the Indian economy through your gold business can help to promote economic growth and development in India.

The Legal Framework for Starting a Gold Business in India

There are a few legal requirements that need to be met before starting a gold business in India. In general, gold can be purchased, sold and traded only with the permission of the Indian government. There are a few exceptions to this rule, including jewelry and other precious metal products that are exempt from import duties.

To start trading gold in India, you will need a license from the Indian government. You will also need to register with the Indian authorities as a gold trader. Once you have completed these steps, you will be able to open a bank account and start trading gold.

The Tax Implications of Starting a Gold Business in India

  • Determine the tax implications of starting a gold business in India. There are a number of taxes that could be levied on gold business activities in India. Some of the more common taxes that may be applicable include value-added tax (VAT), excise duty, and customs duty. It is important to consult with a tax advisor to determine which taxes are applicable to your particular gold business venture.
  • Register your gold business with the relevant authorities. In order to comply with tax and other regulations, it is important to register your gold business with the relevant authorities. This will help to ensure that you are aware of all relevant regulations, and that you are able to comply with them.
  • Pay taxes and fees. It is important to pay taxes and fees associated with your gold business, in order to ensure compliance with regulations. Pay particular attention to taxes and fees that may be applicable to your specific gold business venture.
  • Plan for financial stability. It is important to plan for financial stability when starting a gold business in India. This means ensuring that you have adequate financial resources available to you, in case of unexpected setbacks.
  • Protect your investments. It is important to protect your investments when starting a gold business in India. This means ensuring that you have adequate insurance coverage, and that you have a safe storage facility for your gold.

The accounting and bookkeeping requirements of Starting a Gold Business in India

Before starting any business, you need to do your homework. The same goes for starting a gold business in India.

First, you need to determine how much money you’re willing to invest. Second, you’ll need to consider your start-up costs. Third, you’ll need to determine your business’s target market. Fourth, you’ll need to determine your business’s financial goals. Fifth, you’ll need to create a business plan. Sixth, you’ll need to find a trustworthy accountant and bookkeeper. Seventh, you’ll need to market your business. Eighth, you’ll need to protect your business assets. Ninth, you’ll need to learn about gold laws in India. Tenth, you’ll need to stay organized and efficient as a gold business owner. And finally, you’ll need to stay positive and optimistic in the face of challenges.

Here are some tips to help you get started:

  • Identify your business’s target market. Your target market is people who are interested in investing in gold.
  • Create a business plan. A business plan will help you determine your business’s financial goals and strategies.
  • Research gold laws in India. You’ll need to comply with

The Insurance requirements of Starting a Gold Business in India

In order to start a gold business in India, you will need to obtain an insurance policy. The insurance policy will protect you and your business from potential liabilities.

Some common insurance requirements for starting a gold business in India include:

– Business insurance: This will cover your business against general liability, property damage, and business interruption insurance.

– Gold business insurance: This will cover your business against the risks of theft, loss, and counterfeit gold.

– Product liability insurance: This will cover you and your business if someone is injured or suffers financial loss as a result of using your products.

– Employee insurance: This will cover your employees against injuries and other accidents while they are working for you.

– Export/import insurance: This will protect your business from any potential financial losses due to exporting or importing gold.

If you are thinking of starting a gold business in India, here are a few tips to get started:

1. Do your research. There are a lot of regulations and requirements that must be followed when starting a gold business in India, so it’s important to do your research first to make sure you are aware of all the requirements.

2. Get organized. Gold businesses in India are complex and require a lot of organization and planning to be successful. Make sure you have a clear plan for your business and stick to it.

3. Get the right licenses and permits. Gold businesses in India require a range of licenses and permits from the government, so make sure you are properly licensed and prepared

gold jewellery business plan in india

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India Organic Biofach 2022

Gulfood dubai 2023, gems and jewellery, gems and jewellery industry in india, as of 2022, india ranks first among the top exporters in cut & polished diamonds, and second in gold jewellery, silver jewellery, and lab-grown diamonds., advantage india, growing demand.

* India’s gems and jewellery exports reached US$ 37.73 billion in 2022-23.

* In 2022, India ranks first among the top exporters in cut & polished diamonds, and second in gold jewellery, silver jewellery and lab-grown diamonds.

Growing Demand

Increasing Investments

* In September 2021, Malbar Group invested Rs. 750 crore (US$ 100 million) in a gold refinery and jewellery unit in Hyderabad.

* Cumulative FDI inflows in diamond and gold ornaments in India stood at US$ 1,263.34 million between April 2000-September 2023.

Increasing Investments

Policy support

* The Government has permitted 100% FDI under the automatic route** in this sector.

* The Government has reduced custom duty on cut and polished diamond and colored gemstones from 7.5% to 5% and NIL. 

Policy Support

Attractive Opportunities

* India’s gold demand will witness a sharp upswing to top 800 tonnes in 2023.

* In the fourth quarter of 2022 demand for gold rose stood at 219.7 tonnes.

* The FDI inflows in the gems and jewellery sector increased by 60.78% in FY22 on a year-over-year basis.

Attractive Opportunities

Gems and Jewellery Industry Report

Introduction.

As of February 2021, India’s gold and diamond trade contributed ~7.5% to India’s Gross Domestic Product (GDP) and 14% to India’s total merchandise exports. The gems and jewellery sector are likely to employ ~8.23 million persons by 2022, from ~5 million in 2020. Based on its potential for growth and value addition, the Government declared the gems and jewellery sector as a focus area for export promotion.

The Government has undertaken various measures recently to promote investment and upgrade technology and skills to promote ‘Brand India’ in the international market. The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign investor or the Indian company do not require any prior approval from the Reserve Bank or the Government of India. The Indian Government also signed a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) in March 2022, this will allow the Indian Gems and Jewellery industry to further boost exports. CEPA will provide the industry with duty-free access to the UAE market. India’s Gems Jewellery Export Promotion Council (GJEPC) aims to triple its exports to the UAE post the CEPA.

gems manufacturers in India

Market Size

India’s gems and jewellery market size was at US$ 78.50 billion in FY21. Growth in exports is mainly due to revived import demand in the export market of the US and the fulfilment of orders received by numerous Indian exhibitors during the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC.

India’s total gems and jewellery exports reached US$ 37.73 billion in 2022-23. From April-December 2022, India's gems and jewellery exports were at US$ 28.6 billion, a 6.28% rise compared to the previous year's period.

Net export of gems and jewwllery FY22

Investments/Developments

Cumulative FDI inflows in diamond and gold ornaments in India stood at US$ 1,263.34 million between April 2000-September 2023, according to the Department for Promotion of Industry and Internal Trade (DPIIT).

Some of the key developments in this industry are listed below:

  • In April 2023, The Gem & Jewellery Export Promotion Council (GJEPC) commences the first-ever Lab-grown Diamond Buyer Seller Meet (BSM) in Surat. The event was inaugurated by Mr. Virendra Singh, ITS, Development Commissioner & Additional DGFT; Mr. Kirit Bhansali, Vice Chairman, GJEPC; Mr. Vijay Mangukiya, Regional Chairman, Gujarat; Mr. Smit Patel, Convener, Lab-grown diamonds committee, GJEPC; Mr. Sabyasachi Ray, ED, GJEPC along with others.
  • In February 2022, GJPEC organized a four-day Internal Jewellery Show Signature 2022, where 850 exhibitors participated and there were more than 400 international visitors, buyers, and delegations from the US, UAE, Egypt, Nepal, Uzbekistan, and Bangladesh.
  • In September 2021, Malabar Group invested Rs. 750 crore (US$ 100 million) in a gold refinery and jewellery unit in Hyderabad.
  • In May 2021, GJEPC and the Embassy of India, Morocco, co-hosted the ‘India Global Connect’ to better understand the present business climate in the gems and jewellery sector and seek trade prospects for manufacturers, exporters, and importers from both countries.
  • The GJEPC will organise its first International Gems and Jewellery Show (IGJS) outside the country, in Dubai, from August 14-16, 2021. It will also hold a five-day physical exhibition—India International Jewellery Show (IIJS-2021)—in Bengaluru from September 15-19, 2021, in the first such event outside Mumbai. GJPEC sources said that >250 buyers have registered and >95 stalls have been booked for Dubai IGJS 2021. There will be 150 booths having products such as plain gold, gold-studded jewellery, diamond-studded jewellery, silver jewellery, loose diamonds, and gemstones.
  • In June 2021, Tanishq launched antimicrobial jewellery in certain markets as a pilot project. Currently, the range is available in stores across Chennai and Lucknow, with further launches planned in Kolkata and Hyderabad followed by other key markets. Antimicrobial jewellery is being offered in categories such as chains and rings, which feature special-coated layers that self-disinfect the surface and impede any further microbial growth.
  • In June 2021, the World Gold Council and Gem and Jewellery Export Promotion Council signed an agreement to promote gold jewellery in India. Under the agreement terms, both partners will jointly fund a multi-media marketing campaign that would aim to increase awareness, relevance, and adoption of gold jewellery amongst Indian consumers, especially millennials and Gen Z.
  • In April 2021, Malabar Gold & Diamonds announced to invest Rs. 1,600 crore (US$ 214 million) in FY22 to launch 56 stores, of which 40 would be in India and 16 across global markets. In India, stores will be opened in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Maharashtra, Delhi, West Bengal, Uttar Pradesh, Odisha, and Kerala. In July 2021, the company announced the hiring of >5,000 staff, across its retail operations, brand headquarters and regional offices in the country.
  • In March 2021, Joyalukkas collaborated with IBM Global Business Services to design, develop and deploy a new cloud-native e-commerce platform across 11 countries including India, the UAE, the US, the UK, Singapore, Malaysia, Bahrain, Qatar, Saudi Arabia, Kuwait, and Oman.
  • Reliance's in-house jewellery brand, Reliance Jewels, which has ~93 flagship showrooms and 110 shop-in-shops in 105 cities in the country, will fulfil the orders for the new segment.

Government Initiatives

  • The Indian government accepted the recommendation of GJEPC to promote indigenous manufacturing in the emerging Lab-grown diamond sector by providing research grants to the Indian Institute of Technology (IIT) for five years.
  • India has signed an FTA with the UAE which will further boost exports and is expected to reach the target of US$ 52 billion.
  • The Government has reduced custom duty on cut and polished diamond and colored gemstones from 7.5% to 5% and NIL.
  • Revised SEZ Act is also expected to boost gems and jewellery exports.
  • In September 2021, Ms. Anupriya Patel, Minister of State for Commerce, and Industry said that reforms such as the revamped gold monetisation scheme, reduction in import duty of gold, hallmarking and others would help the industry grow. The market export target is US$ 43.75 billion for 2021.
  • The government has reduced import duty for Gold & Silver (from 12.5% to 7.5%) and Platinum & Pallidum (from 12.5% to 10%) to bring down the prices of precious metals in the local market.
  • In December 2020, All India Gem and Jewellery Domestic Council (GJC) welcomed the decision to make hallmarking compulsory from June 2021 in a phased manner; urged the government to examine the key concerns of the industry for smooth implementation of the initiative.
  • Hallmarking of gold jewellery is set to begin on June 15, 2021. In view of the COVID-19 pandemic, the government accepted the request of stakeholders to provide jewellers some more time to prepare for implementation and resolve issues. Earlier, the date of implementation was June 01, 2021.
  • In December 2020, the Finance Ministry notified that the amendment under the Prevention of Money Laundering Act (PMLA), notifying dealers in precious metals and stones, will maintain records of cash transactions worth Rs. 10 lakh (US$ 13.61 thousand) or more cumulatively with a single customer.

In the coming years, growth in the gems and jewellery sector would largely be contributed by the development of large retailers/brands. Established brands are guiding the organised market and are opening opportunities to grow. Increasing penetration of organised players provides variety in terms of products and designs. Online sales are expected to account for 1–2% of the fine jewellery segment by 2021–22. Also, the relaxation of restrictions on gold import is likely to provide a fillip to the industry.

The improvement in availability along with the reintroduction of low-cost gold metal loans and likely stabilisation of gold prices at lower levels is also expected to drive volume growth for jewellers over the short to medium term. India has 450 organised jewellery manufacturers, importers & exporters and is the hub for jewellery manufacturing. These players have benefited greatly due to the increasing liberal policies by the government. The demand for jewellery is expected to be significantly supported by the recent positive developments in the industry. India’s gems and jewellery industry is expected to reach US$ 100 billion by 2027.

gems and jewellery sector

References: Media Reports, Press Releases, Reserve Bank of India, Gem & Jewellery Export Promotion Council

Related News

Prime Minister Mr. Narendra Modi opens Surat Diamond Bourse, a global hub, creating jobs, showcasing design prowess, and enhancing connectivity for economic goals.

Since 2015, the coin investments, gold bar in India have been highest touching 55 tonnes says a report from World Gold Council (WGC).

Due to decreasing prices, India's demand for gold grew 10% year-over-year in the quarter ending in September to 210 tonnes, despite the inconsistent monsoon in July and August and the fear of El Nino, according to the prediction by World Gold Council (WGC).

Malabar Gold and Diamonds intends to invest Rs. 1,000 crore (US$ 120.3 million) and eventually generate 4,000 jobs in Maharashtra by FY25. The statement was released at the opening of Mumbai's Andheri East Malabar National Hub (M-NH), the company's centralised base of operations in India.

Aditya Birla Group is intending to invest Rs. 5,000 crore (US$ 608.1 million) into branded jewellery retail business namely Novel Jewels to build exclusive jewellery retail stores across India.

Major Hubs for Gems and Jewellery

gold jewellery business plan in india

Industry Contacts

  • Gems and Jewellery Export Promotion Council of India (GJEPC)
  • All India Gems and Jewellery Trade Federation (GJF)

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Existing Schemes

For further details on below queries, you may please visit www.dcmsme.gov.in

gold jewellery business plan in india

A. Prime Minister's Employment Generation Programme (PMEGP)

Eligibility & Conditions:

  • Target Beneficiary: Unemployed rural and urban youth;
  • Eligibility Criteria: Any individual above 18 years of age, SHGs, Charitable trusts, Registered Societies etc.
  • Budget for FY 20-21: Rs. 2500 Crores
  • Details of scheme: It is a Bank appraised and financed, subsidy program to set up micro-enterprises. Hence, a Project Report will be required;
  • Allowed Project Cost: for Manufacturing Unit: Rs. 25 lakh; Service Sector Unit: Rs. 10 lakh, Trading SectorUnit Rs. 10 lakh in North Eastern Region, LWE-affected districts and Andaman & Nicobar Islands
  • Subsidy: General Category: 15% of the project cost in urban areas, 25% in rural areas;
  • Subsidy for Special Category(SC/ST/OBC/ Minorities/Women/ NER/Hill Areas): 25% in urban, 35% in rural areas
  • Contribution of the Entrepreneur: General: 10 %, Special category: 5 %.

Assistance for upgradation and expansion of successful/well performing existing units:

  • The maximum cost of the project under manufacturing sector for up-gradation is Rs.1.00 crore and Rs.25.00 lakh under Service/Trading sector;
  • Maximum subsidy would be 15% of the project cost (20% for NER and Hill States). The balance amount of the total project cost is provided by Banks as term loan.

Steps to Take:

  • It is a fully on line scheme The applicant can apply on line only;
  • The applicant should apply in the following Website- https://www.kviconline.gov.in/pmegpeportal
  • The applicant to follow the guidelines of this portal.
  • In case of help required, the applicant may contact nearest office of Khadi and Village Industries Commission (KVIC), District Industries Center (DIC), State Khadi and Village Industries Board (KVIB) or Coir Board;
  • The applicant has the option to choose Implementing Agency from KVIC/KVIB/DIC/Coir Board. These agencies will support in checking the documents and help in project DPR preparation;
  • Implementing Agencies may suggest some corrections before forwarding the proposal to the Bank;
  • Since it is a bank financed scheme, based on the strength of the project, Bank decides about the loan and the loan amount to the applicant. Hence, the applicant should prepare a good and sustainable business plan;
  • On sanction of loan, Bank will inform the applicant and also to the concerned Implementing Agency;
  • Implementing Agency will arrange for the Entrepreneurship Development Programme (EDP) Training for the applicant, which is available on line as well;
  • On EDP completion, a certificate is issued to the applicant and same is to be submitted along with applicant contribution to the concerned Bank to get first instalment of the loan

B. 'Credit Guarantee Fund Scheme for Micro and Small Enterprises' (CGTMSE)

Existing Micro, small and service Entrepreneurs & Aspiring Entrepreneur all are eligible

Nature of Scheme:

  • The scheme is implemented by Credit Guarantee Trust for MSE (CGTMSE)
  • Credit guarantee for loans upto Rs. 2.00 crore, without collateral and third party guarantee
  • Guarantee coverage ranges from 85% (Micro Enterprise up to Rs 5 lakh) to 75% (others)
  • Recently, guarantee coverage made eligible to select NBFCs and Small Finance banks
  • The extent of guarantee cover is 50% of the sanctioned amount of the credit facility for credit from Rs. 10 lakh to Rs. 100 lakhs per MSE borrower for retail trade activity.
  • The extent of guarantee cover is 80% for (i) Micro and Small Enterprises operated and/or owned by women; and (ii) all credits/loans in the North East Region (NER) for credit facilities upto Rs. 50 lakh.
  • In case of default, CGTMSE settles the claim with the lending institutions.

Steps for Availing the Assistance:

  • Apply through Member Lending Institutions (MLIs- Banks and NBFCs).
  • List of MLIs are available at www.cgtmse.in

1. What is the Credit Guarantee Scheme for MSEs (CGTMSE)? And What is the support available for collateral free borrowing

The Ministry of MSME, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) with a view to facilitate flow of credit to the MSE sector without the need for collaterals / third party guarantees.

The main objective of the scheme is that the lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed. The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of a MSE unit, which availed collateral - free credit facilities, failing to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 85 per cent of the outstanding amount in default.

The CGTMSE would provide cover for credit facility up to Rs. 200 lakh which have been extended by lending institutions without any collateral security and /or third-party guarantees. A guarantee and annual service fee is charged by the CGTMSE to avail of the guarantee cover.

Revised Scheme: Financial assistance on already existing schemes Upto 20% of entire Outstanding credit as on 29.2.2020 for Units upto Rs. 100 cr. turnover eligible. No guarantee fee, no fresh collateral.

For more details you may visit www.cgtmse.in

2. Who can apply for assistance under this scheme?

Any MSME registered unit in Manufacturing or Service sector can apply for assistance under this scheme.

3. Whether borrowers from all service sector enterprises are eligible under the Scheme?

4. Which type of borrowers can be covered under the Scheme?

New and existing Micro and Small Enterprises engaged in manufacturing or service activity excluding Retail Trade, Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions etc.

5. Which are considered as eligible lending institutions under the scheme?

All Scheduled Commercial Banks (either PSU, Private or Foreign Banks), selected Regional Rural Banks, selected state financial corporations or such of those institutions as may be directed by GOI can avail of guarantee cover in respect of their eligible credit facilities under the Scheme.

Small Industries Development Bank of India (SIDBI), National Small Industries Corporation Ltd. (NSIC) and North Eastern Development Finance Corporation Ltd. (NEDFi) have been included as eligible institutions.

6. What is quantum of credit facility that can be covered under the Scheme?

Fund and non-fund based (Letters of Credit, Bank Guarantee etc.) credit facilities up to Rs. 100 lakh per eligible borrower are covered under the guarantee scheme provided they are extended purely on the project viability without collateral security or third party guarantee.

7. Can a Private sector bank or a foreign bank be eligible for guarantee cover?

Yes, provided it is a commercial bank listed in the II Schedule to the Reserve Bank of India Act, 1934.

8. Is Regional Rural Bank eligible for guarantee cover?

Yes, fulfilling the criteria of circular dated June 10, 2014 on "Review of Interest cap and other registration criteria of Regional Rural Banks (RRBs) as Member Lending Institutions (MLIs) of CGTMSE".

The Trust shall cover credit facilities (Fund based and/or Non fund based) extended by select RRB(s) to a single eligible borrower in the Micro and Small Enterprises sector for credit facility not exceeding 50 lakh by way of term loan and/or working capital facilities on or after entering into an agreement with the Trust, without any collateral security and/or third party guarantees.

9. Is guarantee benefit available to existing units of a lending institution which has become a MLI of CGTMSE?

In case of existing units, additional credit facilities in the form of term loan or renewal of working capital facilities can be covered as and when the facilities are extended, provided no collateral security and/ or third party guarantee is obtained.

Part of the credit facility with collateral and part of the facility without collateral for guarantee cover would not be entertained if it is considered as a composite credit.

10. Is it possible to cover credit facilities, which have already become NPA?

No, the credit facility that has already become NPA cannot be covered under the Scheme.

11. What would be the guarantee / service fee that would be payable by the member-lending institution on credit facility sanctioned in excess of 200 lakh?

Presently, annual guarantee fee is payable @1% (0.75% or 0.85% in case of Women, Micro and units in North Eastern Region including state of Sikkim) on the credit facility agreed to be covered by the Trust.

In this case, maximum of 200 lakh would be extended guarantee cover even though the sanctioned amount exceeds 200 lakh.

12. Can a credit facility extended to a borrower against a collateral security be covered under the Guarantee Scheme, if the lending institution relinquishes its rights on the collateral security?

Yes, provided the lending institution relinquishes its rights on the collateral assets and releases the same in favour of the borrower before seeking guarantee cover and subject to fulfilment of the other norms of the Scheme.

Further, in case the MLIs has to retain the collateral security for the existing credit facility, a new credit facility extended to same borrower, without taking collateral can be covered under the scheme provided, the MLI is not extending the charge on the existing collateral to new facility.

13. Can term loan or working capital facility alone be extended by an eligible lender and still be covered under the guarantee scheme?

Yes, a lender can extend either term loan or working capital facility alone and still be eligible for a guarantee cover if it meets the other eligibility parameters.

Needless to say, the credit facility extended to a borrower should be without any collateral security and/or third party guarantee.

14. Is there any ceiling in respect of interest to be levied on the credit facility advanced to the borrower if the same is to be covered under the Scheme?

Any credit facility which has been sanctioned by the lending institution on or after September 01, 2015 with interest rate more than 2% and 3% over the Base Rate/ (Average Base rate decided by the Trust from time to time as applicable to RRBs) for loans up to 50 lakh and loans above 50 lakh respectively.

However, in case of those MLIs for whom Reserve Bank of India has not enjoined Base Rate concept, the existing provision of CGS will continue.

15. When will the guarantee cover commence for the eligible credit facility?

The guarantee cover will commence from the date on which guarantee fee proceeds are credited to bank account of the Trust.

16. Does CGTMSE have branch offices in other cities in India?

CGTMSE has its Registered Office at Mumbai and does not have any branches. Since the entire operations are online, CGTMSE is able to cater to the needs of its MLIs from Mumbai.

17. How is this guarantee scheme operated by the Trust?

The operations of this Scheme are fully computerized using B2B e-business concept to enable the Trust to deliver prompt service to the lenders.

18. How long the guarantee cover is available for credit facilities extended to a particular borrower?

Guarantee will commence from guarantee start date and shall run through the agreed tenure of the term loan / composite loans. Where working capital facilities alone are extended to eligible borrowers, it would be for a period of 5 years or block of 5 years on renewal of the guarantee cover, provided MLI pays the Annual Service Fee due as on March 31, latest by within 60 days from the date of demand by CGTMSE.

19. What is the tenure of the cover for credit relating to working capital?

The tenure for coverage of working capital facilities is 5 years, where working capital alone is covered under the scheme. In case term credit and working capital both are covered under the scheme, the tenure relating to working capital facility would match the normal repayment period of term credit.

The reason for keeping a limit of 5 years wherever working capital alone are covered are that the period for which the same are extended by the lending institutions are not time bound.

The same are reviewed periodically for increase/ decrease in the limit sanctioned, and are expected to continue for a time frame much longer than 5 years. CGTMSE welcomes any renewal of guarantee cover beyond 5 years on a payment of applicable guarantee fee.

20. Can the Micro and Small Entrepreneurs / borrowers approach the Trust directly to seek guarantee for the credits sanctioned by the Banks?

Entrepreneurs in the Micro and Small Enterprises sector have to approach the Banks or financial institutions (who have already registered with the Trust as MLIs) with their viable proposals for their credit requirements. The List of MLIs of the Trust can be seen at CGTMSE's web-site at http://www.cgtmse.in or www.cgtsi.org.in

21. What information is required to be submitted to the Trust before starting operations under the Scheme?

The lending institution has to submit an undertaking (download from http://www.cgtmse.in/files/Undertaking.pdf ) on a stamp paper of appropriate value to the registered office of the Trust. Subsequently, MLIs are required to give the names and addresses of the Zonal / Regional / Branch offices through which they would like to operate the Scheme.

They are also required to furnish the names of a nodal officer and two other officers who will be operating the Scheme at each of the operating offices. On receipt of this information, Member ID and Passwords would be allotted by the Trust, after which it would be possible for MLIs to lodge applications for guarantee cover. Applications are required to be lodged online.

C. Interest Equalization/ Subvention Scheme

Objective: Credit support

Key Benefits: 2% interest subvention for incremental credit to MSMEs.

Scheme applicable for

Existing Entrepreneurs & Aspiring Entrepreneurs

Detailed Information

  • Interest Subvention Scheme for Incremental credit to MSMEs 2018 offers 2 % interest subvention on fresh or incremental loans maximum up to Rs. 1 crore to MSMEs. Small Industries Development Bank of India (SIDBI) is the Nodal Agency for implementation of the Scheme.
  • The Scheme aims at encouraging both manufacturing and service enterprises (including trading activities) to increase their productivity. Incremental/fresh term loan or incremental/fresh working capital extended from 2nd November 2018 by any Scheduled Commercial Banks, NBFCs, RRBs, UCBs (Scheduled & Non-scheduled) and DCCBs would be covered under the scheme.
  • MSMEs already availing interest subvention under any of the Schemes of the State / Central Govt. are not eligible under the Scheme.

How to apply : SIDBI is the Nodal Agency. Implemented through Member Lending Institutions. To know more please go through the SIDBI's circular dated April 4, 2019 on 2% interest subvention

The Government has introduced Interest Subvention Scheme for Incremental credit to MSMEs 2018 offers 2 % interest subvention on fresh or incremental loans maximum up to Rs. 1 crore to MSMEs

D. Credit Link Capital Subsidy Scheme for Technology Upgradation

Objective : Technology support/ Credit Support

Key Benefits :

  • Induction of established and improved technologies.
  • 15% Subsidy on institutional credit upto Rs 1.00 crore with a subsidy cap of Rs.15.00 lakh.
  • Upfront subsidy of 15% on institutional credit up to Rs. 1.0 crore (i.e. a subsidy cap of Rs. 15.00 lakh) for identified sectors/subsectors/ technologies.
  • Flexibility for review of the identified technologies/ subsectors also exists.
  • Presently scheme is being implemented through 11 nodal banks/agencies, however, almost all Commercial Banks, Pvt. Banks & RRBs are acting as PLI through these 11 nodal banks/agencies {SIDBI, NABARD, SBI, Andhra Bank, PNB, BoB, Canara Bank, Corporation Bank, Indian Bank, Bank of India, & TIICL}.
  • In order to ensure fair inclusion of SC/ST category, women entrepreneurs and entrepreneurs from NER, Hill States (Jammu & Kashmir, Himachal Pradesh & Uttarakhand) Island Territories (Andaman & Nicobar and Lakshadweep) and the identifies Aspirational Districts/LWE Districts, the subsidy has also been proposed to be admissible also for investment in acquisition/replacement of plant & machinery/equipment & technology up-gradation of any kind.

How to apply : As per Scheme guidelines - Through Prime lending Institution / Nodal Banks. To know more please visit: https://clcss.dcmsme.gov.in/

1. What is the support available for technology upgradation?

Ministry implements a scheme called Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of Micro and Small enterprises in the country. Under the scheme, 15 per cent capital subsidy, limited to maximum of Rs 15 lakh (12 per cent prior to 29.09.2005 limited to maximum of Rs 4.8 lakh) is provided to the eligible MSEs for upgrading their technology with the well-established and improved technology as approved under the scheme.

48 products/sub-sectors have been approved under the CLCSS till date. If you are an MSE manufacturing a product and want to upgrade the technology of manufacturing the product with the well-established and improved technology as approved under the Scheme, then you may have to approach to the nodal agencies/eligible financial institution for sanction of term loan for purchase of eligible machinery. For further details please visit www.dcmsme.gov.in.

2. What is CLCSS?

It is Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation / purchase of new machine of Micro and Small enterprises in the country.

3. Whether the CLCSS is in operation at present?

Yes. The scheme is continued w.e.f.01.04.2017 and implemented as per pre-revised guidelines, the revised guidelines will be effective from 13.08.2019 and its amendments from time to time, the present validity of the CLCS Component of CLCSTU scheme is extended up to 31st March 2020. For more details please visit on the URL: http://dcmsme.gov.in/CLCS-TUS-Revised-Guidelines.pdf

4. When CLCSS was launched?

The Scheme was launched in the financial year 2000-2001.

5. What were the salient features of the CLCSS?

Under the scheme, 15 per cent capital subsidy, limited to maximum of Rs 15 lakh is provided to the Micro and Small Enterprises for upgrading their technology with the well-established and improved technology as approved under the scheme.

6. How many products/sub-sectors have been approved under the CLCSS?

51 products / sub-sectors have been approved under the CLCSS till date. List is available in the Scheme guidelines at www.dcmsme.gov.in

7. Whether the Scheme is restricted to 51 sub-sectors only?

Technologies / new sub-sectors / products can be added as per the need / proposal received from industrial associations/units in the prescribed format (available on the website) after approval of Technical Sub-Committee (TSC) and Governing and Technical Approval Board (GTAB).

8. Whether the Scheme is applicable for new MSEs?

9. How can I get benefit under the Scheme?

If you are an MSE manufacturing a product and want to upgrade the technology of manufacturing the product with the well-established and improved technology as approved under the Scheme, the unit can approach to the nodal Banks/Agencies /Eligible financial institution for sanction of term loan for purchase of eligible machinery.

The financial institutions /nodal banks/agency will sanction & recommend the subsidy eligible applicant to this office. To know more about this scheme, please follow the link http://dcmsme.gov.in/CLCS-TUS-Revised-Guidelines.pdf

10. Which are the Nodal Agencies for implementation of CLCSS?

Small Industries Development Bank of India (SIDBI), National Bank for Agriculture and Rural Development (NABARD), Canara Bank, Bank of Baroda, Bank of India, The Tamilnadu Industrial Investment Corporation Limited, Chennai (TIICL), Andhra Bank, State Bank of India, Punjab National Bank, Corporation Bank and Indian Bank are the nodal Bank/Agencies for implementation of the CLCSS. Contact details for Nodal Banks/Agencies are available on the official website of this office link i.e. http://www.dcmsme.gov.in/schemes/Faqs.pdf

11. Why all the banks are not covered under the Scheme?

All Scheduled Commercial Banks are covered under the scheme either as nodal bank or as PLI to SIDBI or NABARD.

12. Is CLCSS applicable for medium and large-scale Enterprises?

No, till date only Micro and Small-Scale Enterprises (MSEs) (existing & new) are eligible under CLCSS.

13. What are new steps will have been taken by the Ministry for effective implementation of CLCSS?

Management Information System (MIS) is being developed for online submission of application.

14. Is there any web-site where from I can get more details of the CLCSS?

Yes. Web-site is www.dcmsme.gov.in under the tab 'Technology Upgradation'.

15. Whether individual MSEs can directly apply for subsidy?

No, this scheme is applicable to those units who have availed term loan from banks to acquire upgraded technology/machines. Units cannot apply directly online but banks will forward the application to Office of Development Commissioner (MSME).

16. What is the time limit for applying for subsidy?

Eligible claim with reference date (date of release of last instalment of term loan) of each quarter should reach up to the end of next quarter. For example, if reference date falling between 1st January, 2015 to 31st March, 2015 the claim should be forwarded latest by 30th June, 2015 to Office of DC (MSME).

17. What is the mechanism for disbursement of subsidy to the unit?

Subsidy is being released to the concerned Nodal bank/agency and subsidy is to be kept in the form of Term Deposit Receipt (TDR) for 3 years by bank after release by Office of DC (MSME) in the concerned unit account and interest amount on the term loan should be reduced accordingly.

The beneficiary unit shall remain in commercial production for a period of at least three years after installation of eligible plant & machinery on which subsidy under CLCSS has been availed. If the unit fulfils the condition, the TDR will be transferred to unit's account after three years. Further, it is to clarify that there are two different conditions one is about the commercial production for a period of at least three years after installation of the eligible plant machinery on which subsidy under CLCSS has been availed and another is that Subsidy is to be kept in the form of TDR for 3 years.

These two conditions and other conditions stipulated in the extant guidelines are to be fulfilled by the beneficiary/PLIs before release of subsidy in the beneficiary's

A. Procurement and Marketing Support (PMS) scheme

Objective : Marketing Support

Key Benefits

  • Participation of Individual MSEs in domestic Trade Fair/ Exhibition
  • Capacity building of MSMEs in Modern Packaging Technique / Development of Marketing Haats.
  • Organizing Domestic Trade Fair & Exhibition/ Vendor Development Programs/ National & International Workshops & Seminars/ Awareness programs
  • Existing Entrepreneurs
  • Participation of individual MSEs in domestic trade fairs/ exhibitions across the country: Maximum Budgetary support (space rent and contingency) up to Rs.1.5 Lakhs max. for Metro & A class citers. Rs 1.0 lakhs max. for Class B cities / NER/J&K/ Hilly States and for other cities Rs.0.80 lakhs max.
  • Organizing Domestic Trade Fairs/ Exhibition and participation in trade fairs/exhibitions by the Ministry/Office of DC (MSME)/Government organizations:
  • Maximum Budgetary support for space rent and advt. & publicity for the event is as follows,
  • a. Regional: (State/District): Rs.30.00 Lakh max. b. National: Rs.40.00 Lakh .max. c. International: As decided by Empowered Committee subject to approval of Deptt. Of Expenditure.
  • Capacity building of MSMEs in modern packaging technique: Maximum Budgetary support of Rs.1.0 lakh max. for ordinary packaging consultancy and Rs.1.5 lakh max. for green packaging consultancy for MSME unit.
  • Development of Marketing Haats. Maximum Budgetary support: For Development of new MSME Haats, upper limit of GIA will not exceed Rs. 50 lakh max.
  • For Renovation/up-gradation of existing Marketing Haats, upper limit of GIA will not exceed Rs.20 lakhs max.
  • Vendor Development Programmes: Maximum Budgetary support is as follows; State Level Vendor Development Programme (SLVDP): Rs. 1 Lakh max. (One day) National Level Vendor Development Programme (NLVDP): Rs. 10 lakhs max. for A class city and Rs.7.0 lakh max. for other cities. (2-3 days)
  • International/National Workshops/Seminars.: Maximum Budgetary Support would be Rs 5.0 lakh maximum or actual whichever is less and for National Workshop/Seminar and Rs 7.5 Lakh maximum or actual whichever is less for International Workshop/Seminar
  • Awareness Programs: Maximum Budgetary support of Rs. 70,000/- max. per program (One day)

How to apply : Please visit below link at https://my.msme.gov.in/MyMsme/Reg/COM_Matu.aspx

B. International Cooperation (IC) Scheme

Reimbursement for participation/visit in international exhibitions/fairs Reimbursement for holding international conferences and seminars by industry associations/Govt. organizations.

Scheme applicable for Existing Entrepreneurs

  • Assistance provided under the scheme: For Participation in International Exhibition/Fair Economy class Air fare fair (maximum of Rs. 1 Lakh) Stall charges (maximum Rs. 1.25 Lakh) Freight Charges (maximum Rs. 25,000/-) Entry/Registration fee up to Rs. 5000/-
  • For Organizing International Conference in India Cost for organizing the event subject to a maximum of Rs. 4.50 Lakh Airfare for foreign speakers (minimum 03) up to a maximum of Rs. 2.50 lakh For more detailed information refer to Scheme guidelines, on the following link: https://msme.gov.in/sites/default/files/IC-Scheme-Guidelines-June-2018.pdf

How to apply : Applications can be submitted by eligible industry associations/organizations to avail the benefits under the scheme at the following link: https://ic.msme.gov.in/IC_APP/IC_Index.aspx

FAQs: Exhibition Participation Grants

1. What are the objectives of Procurement and Marketing Support scheme?

Procurement and Marketing Support scheme has following objectives:

To promote new market access initiatives like organizing / participation in National /International Trade Fairs / Exhibitions I MSME Expo etc.

To create awareness and educate the MSMEs on topics relevant for market access development.

To create more awareness about trade fairs, digital advertising, e-marketing, GST, GEM portal, Public Procurement policy and other related topics etc.

For more details: https://msme.gov.in/sites/default/files/Guidelines_PMS.pdf

2. What are the eligibility criteria of the PMS scheme?

Any Individual Manufacturing/Service MSEs registered at Udyog Aadhar Memorandum (UAM) portal.

3. Who is the implementing agency for the scheme?

The implementing agencies are:

Office of DC MSME through its field organizations namely MSME Development Institutes and Technology Centers.

Other field organizations of Ministry of MSME namely NSIC, KVIC, Coir Board.

State Governments through its department's /organizations/ corporations/ autonomous bodies and agencies.

Other central Govt. Ministries through its departments /organizations / corporations /autonomous bodies and agencies.

4. What is the procedure to apply for the scheme

Pl. refer https://my.msme.gov.in/MyMsme/Reg/COM_Matu.aspx

5. What are the components of the PMS schemes?

The components of the PMS scheme are mentioned below:

  • Participation of individual MSEs in domestic trade fairs/ exhibitions
  • Organizing Domestic Trade Fairs/ Exhibition and participation in trade fairs / exhibitions by the Ministry / Office of DC (MSME) / Government organizations
  • Capacity building of MSMEs in modern packaging technique
  • Development of Marketing Haats
  • Vendor Development Programmes
  • International/National Workshops/Seminars
  • Awareness Programs

Under each scheme component, eligible items and the scale of assistance are defined. It can be accessed at: https://msme.gov.in/sites/default/files/Guidelines_PMS.pdf

6. What support is provided by the Ministry for participation of MSMEs in international events?

Under the International Cooperation Scheme, financial assistance is provided on reimbursement basis to the State/Central Government organizations, industries/enterprises Associations and registered societies/trusts and organizations associated with MSME for deputation of MSME business delegation to other countries for exploring new areas of MSMEs, participation by Indian MSMEs in international exhibitions, trade fairs, buyer seller meet and for holding international conference and seminars which are in the interest of MSME sectors.

Eligible beneficiary organizations can apply to the Ministry directly to avail the assistance under IC Scheme as per Scheme Guidelines. For further details please visit http://www.dcmsme.gov.in

7. Who can apply under this scheme

Government Institutions and Registered Industry Associations associated with promotion and development of MSME sector.

8. How to apply under this scheme?

Applications for financial assistance can be sent in the prescribed form to the Director (International Cooperation), Ministry of MSME, Udyog Bhawan, New Delhi-110011. The detailed guidelines of International Cooperation Scheme including application form and claim form are available on the website of the Ministry namely https://my.msme.gov.in

1. What are the activities being implemented by NSIC under the Marketing Assistance Scheme?

a. Organizing Domestic Exhibitions

b. Participation in Exhibitions/ Trade Fairs in India

c. Support for Co-sponsoring of Exhibitions organized by other organizations /industry associations/agencies

d. Buyer-Seller Meets

e. Intensive Campaigns and Marketing Promotion Events

f. Other Support Activities (Listed in MAS)

2. Who is eligible for availing benefits under the Marketing Assistance Scheme?

Micro, Small & Medium Enterprises having Udyam Registration and entry on MSME databank are eligible for availing benefits under the Marketing Assistance Scheme.

3. What are the eligible components for availing subsidies under Marketing Assistance Scheme?

For participation in Domestic Exhibitions, Built- up stall is provided to MSMEs at subsidized rates.

4. How many times an MSME unit is eligible for participation in Domestic Exhibition?

An MSME unit is eligible for participation in One Domestic exhibition in a financial year. Units belonging to SC/ST entrepreneurs will be governed by special Marketing Assistance Scheme.

5. What is maximum budgetary limit for participation in a domestic exhibition?

Maximum Budgetary support for space rent and advt. & publicity for the event is as follows:

  • Regional: (State/District): Rs.30.00 Lakh max.
  • National: Rs.40.00 Lakh .max.
  • International: As decided by Empowered Committee subject to approval of Deptt. Of Expenditure.
  • The support is provided on 'First come First serve' basis.

6. When an MSME unit should apply for participation in domestic exhibition?

Please visit below link for participation in domestic exhibition at https://my.msme.gov.in/MyMsme/Reg/COM_Matu.aspx

MSME's may also visit to nearest MSME-DI and NSIC branch office at least 1-2 month prior to the commencement of the exhibition.

7. How do you define MSEs owned by SCI ST enterprises?

Definition of MSEs owned by SCI ST, as per clarification dated 25.6.2013 by Ministry of MSME under the provision of para 16 of Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012, is as given under:

  • In case of proprietary MSE, proprietor(s) shall be SC /ST.
  • In case of partnership MSE, the SCI ST partners shall be holding at least 51% shares in the unit
  • In case of Private Limited Companies, at least 51% share shall be held by SC/ ST promoters

8. What are the benefits and where do we need to go to avail marketing assistance scheme for participation in International and Domestic exhibitions?

For International Exhibition Participation MSME's can avail below benefits under International Cooperation Scheme.

  • For Organizing International Conference in India Cost for organizing the event subject to a maximum of Rs. 4.50 Lakh Airfare for foreign speakers (minimum 03) up to a maximum of Rs. 2.50 lakh

For more detailed information refer to Scheme guidelines, on the following link: https://msme.gov.in/sites/default/files/IC-Scheme-Guidelines-June-2018.pdf

For Domestic Exhibition Participation, MSME's can avail below benefits under Procurement and Marketing Support scheme

  • How to apply : Applications can be submitted by eligible industry associations/organizations to avail the benefits under the scheme at the following link https://my.msme.gov.in/MyMsme/Reg/COM_Matu.aspx

To know more details for availing the benefits for participation in International and Domestic exhibitions members can approach nearest government bodies National Small Industries Corporation (NSIC) Limited and (MSME DI) MSME Development Institute.

MSME members can avail this benefit of Marketing Assistance for participation in International/Domestic fairs. MSME units are entitled to get subsidies of space rent and airfare for participation in International trade fair/domestic fair. Please note you will have to start the enrolment and preapproval process, at least 2 months prior to participation for International fair/domestic fair in order to avoid delay.

9. What scheme does the Ministry have for providing marketing support to MSMEs?

The Ministry has Procurement and Marketing Support scheme and International Coopertaion Scheme for providing marketing support to MSMEs and for capturing the new market opportunities through organizing / participating in various domestic & international exhibitions/ trade fairs, Buyer-Seller meets intensive-campaigns and other marketing events.

10. How can the MSME's avail the grants for domestic exhibitions through?

For participation in domestic exhibitions members may visit the MSME-DI/NSIC office and may request them individually for availing the grants for listed exhibitions and may also approach for unlisted exhibitions. They can apply through below mentioned website: https://my.msme.gov.in/MyMsme/Reg/COM_Matu.aspx

11. What support is provided by the Ministry for participation of MSMEs in international events?

Eligible beneficiary organizations can apply to the Ministry directly to avail the assistance under IC Scheme as per Scheme Guidelines. For further details please visit www.dcmsme.gov.in

12. Who can avail the benefits of the Marketing Assistance schemes?

Any MSME registered unit.

13. Can the units apply under these schemes at any time of the year?

Units can apply under these schemes at any time of the year. But they should apply minimum 2 months in advance of the participation in the event.

14. What is the mechanism for disbursement of assistance to the unit?

The assistance is provided in form of re-imbursement after submission of all the related expense details with supporting.

15. Whether the Scheme is applicable for new MSME registered units?

16. Are these schemes limited to specific sectors only?

No. These schemes can be availed by any unit in any sector subject to approval of their application by the screening committee.

17. For these schemes can units apply individually or they have to apply through any trade association / organization?

Any unit can apply in either way individually for domestic exhibitions or through a trade association / organizations in a group of at least 10 MSME's for International exhibitions.

18.What support is provided by the Ministry for participation of MSMEs in international events?

Under the International Cooperation Scheme, financial assistance is provided on reimbursement basis to the State/Central Government organizations, industries/enterprises Associations and registered societies/trusts and organizations associated with MSME for deputation of MSME business delegation to other countries for exploring new areas of MSMEs, participation by Indian MSMEs in international exhibitions, trade fairs, buyer seller meet and for holding international conference and seminars which are in the interest of MSME sectors. Eligible beneficiary organizations can apply to the Ministry directly to avail the assistance under IC Scheme as per Scheme Guidelines. For further details please visit www.dcmsme.gov.in

National Manufacturing Competitiveness Programme (NMCP)

The National Manufacturing Competitiveness Programme (NMCP) is the nodal programme of the Government to develop global competitiveness among Indian MSMEs. The Programme was initiated in 2007-08. This programme targets at enhancing the entire value chain of the MSME sector through the following schemes:

  • Lean Manufacturing Competitiveness Scheme for MSMEs;
  • Promotion of Information & Communication Tools (ICT) in MSME sector;
  • Technology and Quality Up gradation Support to MSMEs;
  • Design Clinics scheme for MSMEs;
  • Enabling Manufacturing Sector to be Competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTT);
  • Marketing Assistance and Technology Up gradation Scheme for MSMEs;
  • Setting up of Mini Tool Room under PPP Mode;
  • National campaign for building awareness on Intellectual Property Rights (IPR);
  • Support for Entrepreneurial and Managerial Development of SMEs through Incubators.
  • Bar Code under Market Development Assistance (MDA) scheme.

A. MSME Technology Centres (TCs) (Existing TCs + New TCs + Extension Centers spread all over country)

MSME Technology Centres (TCs) (Existing TCs + New TCs + Extension Centers spread all over country)

Objective : Technology support, Skill development, Product D

  • Design & Manufacture of Dies, Moulds using Latest Technology
  • Help in prototyping new product

Skill Development:

Consultancy: Tool Design, new product development.

Existing Entrepreneurs / Aspiring Entrepreneurs

  • Training programs offered by TCs range from 2 weeks to 4 years. 76 programs are NSQF Complaint.
  • Long term trainees are well placed in industry.
  • Customized training programs may also be launched.
  • TC Kannauj may provide consultancy for sanitizer mfg.
  • TC Meerut can do PPE Coverall testing.

How to apply :

1. Individuals may apply for training programs through websites of the respective TCs. Online training programs also available. 2. MSMEs can approach directly for moulds, dies, product development 3. Consultant Contact details available on websites of TCs. Firms may approach TCs for hiring skilled manpower.

To know more about Tool rooms please visit dcmsme.gov.in/Technology_Centres.htm

1. What benefits do the MSME Technology Centres/Tool Rooms of Ministry of MSME provide to MSMEs?

MSME Technology Centres are equipped with state-of-the-art machinery & equipment. They are engaged in designing and manufacturing of quality tools, which are necessary for producing quality products and improve the competitiveness of MSMEs in national and international markets. They also conduct training programmes to provide skilled manpower to industries specially MSMEs. The placement of trainees trained in Tool Room is more than 90%. There are 18 Technology Centres under DC (MSME), a list of MSME Technology Centres and their details is available in the website http://dcmsme.gov.in/Toolroom_tdcs.htm

B. Information & Communication Tools (ICT)

What support is provided by the Ministry for promotion of Information & Communication Tools (ICT) in MSME Sector?

The Ministry implements the Information and Communication Technology (ICT) scheme to encourage and assist Indian MSMEs to adopt ICT Tools and Applications in their production and business processes, and thereby improve their productivity and competitiveness in National and International Market.

C. Cluster development

Objective : Technology support/Skill development

  • Creation of Common Facility Centers including Plug & Play Facilities
  • Thematic Interventions- Activities such as Training Programmes, Exposure Visits

Scheme applicable for Existing Entrepreneurs (in form of a SPV)

  • Common Facility Centers: Creation of "tangible assets" such as Common Production/Processing Centre, Design Centers, Testing Facilities including Plug & Play Facilities. GoI Assistance: upto 90% of the maximum Project cost of Rs. 20 crore
  • Infrastructure Development: Development of land, roads, drainage, power distribution etc. in new / existing industrial (multi-product) areas / estates / Flatted Factory Complex. GoI Assistance: upto 80% of the maximum Project cost of Rs. 15 crore
  • Marketing Hubs / Exhibition Centres by Associations: Establishing Marketing Hubs/Exhibition Centres at central places for display and sale of products. GoI Assistance: upto 80% of the maximum Project cost of Rs. 10 crore
  • Thematic Interventions: Activities such as Training Programmes, Exposure Visits, BDS provisioning etc. for approved/ completed CFCs. GoI Assistance: Rs.2.00 lakh for each activity, maximum Rs.10 lakh per CFC
  • State Innovative Cluster Development Programme: Co-funding of the CFC projects of State Cluster Development Programme on matching share basis. GoI Assistance: GoI fund would be limited to State Government share or Rs.5.00 crore whichever is lower

For details please contact nearby MSME-Development Institute/ District Industry Centre.

How to apply : Please visit https://cluster.dcmsme.gov.in/

1. What is Cluster?

A cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area or a value chain that goes beyond a geographical area and producing same/similar products/complementary products/services, which can be linked together by common physical infrastructure facilities that help address their common challenges. The essential characteristics of enterprises in a cluster are (a) Similarity or complementarity in the methods of production, quality control & testing, energy consumption, pollution control, etc., (b) Similar level of technology & marketing strategies/practices, (c) Similar channels for communication among the members of the cluster, (d) Common market & skill needs and/or (e) Common challenges & opportunities that the cluster faces.

2. What is MSE-CDP?

Micro & Small Enterprises - Cluster Development Programme (MSE-CDP), MSE-CDP approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country.

3. What are the objectives of MSE-CDP?

Following are objectives offset-CDP: To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills & quality, market access, etc. To build capacity of MSEs for common supportive action through formation of self-help groups, consortia, upgradation of associations, etc. To create/upgrade infrastructural facilities in the new/existing Industrial Areas/Clusters of MSEs. To set up Common Facility Centers (for testing, training, raw material depot, effluent treatment, complementing production processes, etc.). Promotion of green & sustainable manufacturing technology for the clusters to enable units switch to sustainable and green production processes and products.

4. Which are the components covered under MSE-CDP?

Following are the components for which GoI assistance is provided under MSE-CDP:

  • Setting up of Common Facility Centers (Common Production/Processing Centre, Design Centre, Testing Centre etc.).
  • Creation/upgradation of infrastructural facilities in the new/existing industrial areas/ clusters of MSEs.
  • Establishing Marketing Hubs/Exhibition Centers at central places for display and sale of products of Micro and Small Enterprises.
  • Implementation of Thematic Interventions in approved/completed CFCs for following activities:
  • Training Programs
  • Exposure Visits.
  • Strengthening the Business Development Service (BDS) provision through a panel of service providers.
  • Any other activity related to creating business eco-system in clusters
  • Support to State Innovative Cluster Development Programme, this component would provide co-funding of the CFC projects of State Cluster Development Programme on matching share basis.

For further details please visit http://www.dcmsme.gov.in/MSE-CDProg.htm .

Public Procurement Policy

5. What is the support available for cluster development?

The Ministry is implementing the Micro and Small Enterprises â€" Cluster Development Programme (MSE-CDP) wherein support is provided for Diagnostic Study; Soft Interventions like general awareness, counseling, motivation and trust building, exposure visits, market development including exports, participation in seminars, workshops and training programmes on technology upgradation etc.; Hard Interventions like setting up of Common Facility Centers (Common Production/Processing Centre, Design Centre, Testing Centre etc.) and creation/upgradation of infrastructural facilities in the new/existing industrial areas/ clusters of MSEs. For further details please visit www.dcmsme.gov.in

D. Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

Organize traditional industry artisans into clusters by providing Technology Support, Marketing Support, Skill Development

  • Support to traditional artisans to provide sustainable employment
  • Government of India support up to Rs. 2.5 cr. up to 500 artisans and Rs. 5 cr. for more than 500 artisans
  • Set up physical infrastructure with CFCs, latest machines, training, etc. in clusters.

Existing artisans from traditional industries

Government of India supports traditional industry artisans to provide them sustainable employment through Hard Intervention in setting up physical infrastructure with CFCs, raw material banks, latest machines, and Soft Intervention in skill development, market promotion initiatives, etc. in clusters.

Government of India gives 90% (95% in NER, J&K and Hill Areas) of Hard Intervention cost and entire cost of Soft Intervention

How to apply : To know more about the scheme please visit https://sfurti.msme.gov.in/SFURTI/Home.aspx

E. Lean Manufacturing Competitiveness for MSMEs

Objective : Technology support

Financial assistance is provided for implementation of lean manufacturing techniques, primarily the cost of lean manufacturing consultant (80% by GoI and 20% by beneficiaries).

The objectives of the Scheme are to enhance the manufacturing competitiveness of MSMEs through the application of various Lean Manufacturing (LM) techniques by;

  • Reducing waste
  • Increasing productivity
  • Introducing innovative practices for improving overall competitiveness;
  • Inculcating good management systems; and
  • Imbibing a culture of continuous improvement.

How to apply : To know more kindly please visit http://www.dcmsme.gov.in/schemes/clcs-tus/LEAN-Operational-Guidlelines.pdf

F. ZED Certification Scheme

  • Promote adaptation of Quality tools/systems and Energy Efficient manufacturing.
  • Financial assistance will be provided to the MSMEs in obtaining a ZED certification.
  • Reimbursement of Certification fees/Consultancy charges on successful certification, subject to an upper ceiling as per the scheme guideline. This can be claimed only once each for National and International Standards.
  • For MSMEs supplying for Defence, reimbursement shall be admissible additionally on Defence related certificates/Standards only once.

The scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs and ZED Assessment for their certification so as to:

  • Encourage and Enable MSMEs for manufacturing of quality products using latest technology tools & to constantly upgrade their processes for achievement of high productivity and high quality with the least effect on the environment.
  • Develop an Ecosystem for Zero Defect Zero Effect Manufacturing in MSMEs, for enhancing competitiveness and enabling exports.
  • Promote adoption of Quality and recognizing the efforts of successful MSMEs.
  • Increase public awareness on demanding Zero Defect and Zero Effect Products through the ZED Rating and Grievance Redressal Portal.

How to apply : For more details please visit link: http://dcmsme.gov.in/schemes/clcs-tus/Operational_Guidelines_ZED.pdf

G. Design Clinic for Design Expertise to MSMEs

Objective : Technology Support

  • To facilitate MSMEs to develop new Design strategies and or design related products through design interventions and consultancy. Financial assistance to the MSMEs for engagement of design consultants for design intervention (GoI contribution @ 75% for micro, 60% for SMEs for the project range up to Rs. 40 lakh).
  • The Design Scheme shall support design work by reimbursing 75% of expenses incurred up to Rs. 1.5 lakh for final year student project done for MSMEs.

To bring Indian manufacturing sector and Design expertise/ Design fraternity on to a common platform and to provide expert advice and cost-effective solution on real time design problems, resulting in new product development, continuous improvement and value addition for existing products including new products.

How to apply : MSMEs can submit their proposal to Implementing Agency (IA) as per scheme guideline. For more details on scheme guidelines please visit below link: http://www.dcmsme.gov.in/schemes/Design-Guidelines-CLCS-TUS-2019-2020.pdf

1. What support is provided by the Ministry to improve design of products produced in MSME sector?

The Ministry implements the Design Clinic Scheme for Design Expertise to Micro, Small and Medium Enterprises (MSME) Sector is to improve the design of the product to meet global challenges and compete with similar products domestically and internationally. It is launched to benefit MSMEs by creating a dynamic platform to provide expert solutions to real time Design problems and add value to existing products. The goal of this scheme is to help MSME manufacturing industries move up the value chain by switching the production mode from original equipment manufacturing to original design manufacturing and hence original brand manufacturing. In the Design Clinic scheme, the value additions to an idea or a concept are imparted through interaction at a lesser cost to a specific industry/sector. The expected outcome of such interventions is new product development by design improvement and value addition for existing products. For further details please visit www.dcmsme.gov.in

H. Digital MSME

Key Benefits:

To make MSMEs digitally empowered and motivate them to adopt Information Communication Technology (ICT) tools and application in their production and business process.

The main objective of scheme is to make MSMEs digitally empowered and motivate them to adopt ICT tools and applications in their production & business processes with a view to improve their competitiveness in national and international Market.

How to apply : To know more in detail please visit the link: http://www.dcmsme.gov.in/schemes/DigitalMSME-Guideline-CLCS-TUS-2019-2020.pdf

I. Promotion of MSMEs in NER and Sikkim- a sub component of Central Sector Scheme "Technology and Enterprise, Resource Center"

Objective: Technology support/Skill development

  • Establishment & Up-gradation of Mini Technology Centers.
  • Development of New & Existing Industrial Estates
  • Capacity Building of Officers engaged in promotion of MSMEs in NER & Sikkim.

Scheme applicable for Existing Entrepreneurs / Aspiring Entrepreneurs

  • Setting up new and modernization of existing Mini Technology Centres: Financial assistance of 90% of the total project cost (maximum assistance Rs. 10.0 Cr.)
  • Development of new and existing Industrial Estates: Financial assistance of 80% of the total project cost (maximum assistance Rs. 8.0 Cr.)
  • Capacity Building of Officers: Financial Assistance up to Rs. 1.5 lakh per participant.
  • Other Activities: Financial Assistance upto Rs. 1.0 Cr.

How to apply : Proposals through the State Govts. For more details please visit link http://www.dcmsme.gov.in/schemes/Guidlines.07.8.19.pdf

1. What support is provided by the Ministry to promote energy conservation in the manufacturing process for SMEs?

The Ministry implements the "Technology and Quality Upgradation Support to Micro, Small and Medium Enterprises (TEQUP)" which focuses on two important aspects, namely, enhancing competitiveness of MSME sector through Energy Efficiency and Product Quality Certification. The basic objective of this scheme is to encourage MSMEs in adopting energy efficient technologies and to improve product quality of manufacturing in MSMEs. It is a well-known fact that energy consumption is a significant component in the cost structure of almost any manufacturing/ production activity. Adopting energy efficient technologies curtails the cost of energy there by reducing production cost and increasing competitiveness. Under this scheme, a capital subsidy of 25% of the project cost subject to a maximum of Rs. 10.00 lakh shall be provided to the registered MSME units. While 25% of the project cost will be provided as subsidy by the Government of India, the balance amount is to be funded through loan from SIDBI/banks/financial institutions. The minimum contribution as required by the funding agency will have to be made by the MSME unit. For further details please visit www.dcmsme.gov.in

2. What support is provided by the Ministry to improve quality of products produced in MSME sector?

The TEQUP scheme envisages another activity, namely, Product Quality Certification. The main objective of this scheme is to encourage MSMEs to Acquire Product Certification Licenses from National / International Bodies, thereby improving their competitiveness. The primary objective of this activity is to provide subsidy to MSME units towards the expenditure incurred by them for obtaining product certification licenses from National / International standardization Bodies. Under this Activity, MSME manufacturing units will be provided subsidy to the extent of 75% of the actual expenditure, towards licensing of product to National/International Standards. The maximum GOI assistance allowed per MSME is Rs.1.5 lakh for obtaining product licensing /Marking to National Standards and Rs. 2.0 lakh for obtaining product licensing /Marking to International standards. One MSME unit can apply only once under the scheme period. For further details please visit www.dcmsme.gov.in

3. What support is provided by the Ministry for improving manufacturing competitiveness?

To enhance the competitiveness amongst the MSMEs, there are six components for capacity building, technology upgradation, design interventions, products, IP rights to improve the productivity and handhold to deliver top quality productivity using lean technologies, to nurture ideas from professional beyond the traditional and to make MSME digitally powered under the umbrella program of Credit linked Capital subsidy Scheme and Technology Upgradation (CLS-TUS)

Lean Manufacturing Competitiveness Scheme for MSMEs: Financial assistance up to Rs. 36 lakh(Max. per mini cluster of 10 units, minimum 4 units for a period 10 months or till the completion)

Zero Defect and Zero Effect: Reimbursement for obtaining National and International standard certification

Digital MSME: Assistance is being provided for business solution software i.e ERP, etc. though e-platforms

Intellectual Property Rights: Reimbursement for registration of patent, trade mark, geographical indication (GI) are:

Domestic Patent: up to Rs. 1 lakh

Foreign Patent: up to TRs. 5 lakh

GI Registration: up to Rs. 2 lakh

Trademark: up to 0.10 lakh

Financial support up to 1.00 Cr. for setting up IP facilitation centres for a period of 5years.

Design Expertise to Manufacturing MSME Sector: Financial assistance to MSMEs for engagement of design consultants for design interventions (for the project range Rs. 15 lakh to Rs.40lakh) Financial assistance of Rs. 1.5 lakh for final year student project done for MSMEs

Support for Entrepreneurs and Managerial Development of MSMEs through incubators: Financial support for untiring for developing of idea: maximum up to Rs. 15.00 lakh Details may be seen at http://www.dcmsme.gov.in/schemes/clcs-tus_scm.htm

The applicant may apply through online portal http://my.msme.gov.in

J. ISO certification

1. Is there support available for obtaining ISO certification?

The Ministry is implementing the ISO: 9001/14001/HACCP Certification Reimbursement Scheme for Micro & Small Enterprises (MSEs) for reimbursement of certification expenses, only to those MSEs which have acquired Quality Management Systems (QMS)/ISO 9001 and /or Environment Management Systems (EMS)/ ISO14001and / or Food Safety Systems (HACCP) Certification. Under the scheme provides reimbursement of 75% of the certification expenses up to a maximum of Rs.75,000/- (Rupees seventy five thousand only) to each unit as one-time reimbursement only to those MSEs which have acquired Quality Management Systems (QMS)/ISO 9001 and /or Environment Management Systems (EMS)/ ISO14001and / or Food Safety Systems (HACCP) Certification. For further details please visit www.dcmsme.gov.in.

K. Awareness on Intellectual Property Rights (IPR)

Reimbursement of Patent/Trademark/GI: Patent: A. Indian Patent upto Rs.1.00 Lakh B. Foreign Patent upto Rs. 5.00 Lakh Trademark upto Rs. 0.10 Lakh GI Registration Rs. 2.00 Lakh Assistance for setting up IP Facilitation Centre upto Rs. 1.00 cr. for period of 5 years

  • To enhance the awareness of Intellectual Property Rights (IPRs) amongst the MSMEs to encourage creative intellectual endeavor in Indian economy;
  • To take suitable measures for the protection of ideas, technological innovation and knowledge-driven business strategies developed by the MSMEs for;
  • To provide appropriate facilities and support for protection and commercialization of Intellectual Property (IP) for the benefit of MSME sector;
  • To assist SMEs in effective Utilization of IPR Tools for technology up-gradation, market and business promotion and competitiveness. enhancement.

How to apply : View IPR Guidelines at http://www.dcmsme.gov.in/schemes/IPR-Guidelines-CLCS-TUS-2019-2020.pdf

To know more about the scheme please visit the link: https://my.msme.gov.in/MyMsme/Reg/COM_IprReim.aspx

1. Whether there is any scheme for assisting MSMEs for Intellectual Property Rights?

Under the National Manufacturing Competitiveness Programme (NMCP) to enhance the competitiveness of the SMEs sector, O/o DC (MSME) is implementing a scheme "Building Awareness on Intellectual Property Rights (IPR)" for the MSME. The objective of the scheme is to enhance awareness of MSME about Intellectual Property Rights (IPRs) to take measure for the protecting their ideas and business strategies Accordingly, to enable the MSME sector to face the present challenges of liberalization, various activities on IPR are being implemented under this scheme. For further details please visit http://my.msme.gov.in .

L. Entrepreneurial and Managerial Development of SMEs through Incubators

Objective : New Enterprise Creation

  • Funding support up to Rs. 15 lakhs for development of innovative ideas in to commercial products
  • Seed funding support up to Rs. 100 lakhs for setting up new units for commercialization of successful innovative ideas

Scheme applicable for Existing Entrepreneurs/Aspiring Entrepreneurs

The main objective of the scheme is to promote & support untapped creativity of individual and to promote adoption of latest technologies in manufacturing as well as Knowledge based innovative MSMEs (ventures) that seek the validation of their ideas at the proof of concept level. The scheme also supports engagement with Enablers who will advise such MSMEs in expanding the business by supporting them in design, strategy and execution. The Enablers will play a pivotal role and would be integral part of the business development.

How to apply : For more details please visit the below link http://www.dcmsme.gov.in/schemes/Incubator-Guidelines-CLCS-TUS-2019-2020.pdf

M. Support for setting up of 'Business Incubators'

The Ministry implements the Support for Entrepreneurial and Managerial Development of SME's Through Incubators". The main purpose of the scheme is to nurture innovative business ideas (new/indigenous technology, processes, products, procedures, etc), which could be commercialized in a year. Under the Scheme, financial assistance between 75% to 85% of the project cost upto maximum of Rs. 8 lakh per idea/unit, provided to Business Incubators (BIs). The BIs are also eligible to avail Rs. 3.78 lakh for infrastructure and training expenses for incubating 10 ideas. Any individual or Micro and Small Industries (MSEs) that has innovative business idea at near commercialization stage can approach the Business Incubators approved under the scheme. Under the scheme, various institutions like Engineering Colleges, Management Institutions, Research labs, etc. that have in-house incubation facilities and faculty for providing handholding support to new idea/entrepreneur can apply in the prescribed application form. For further details please visit www.dcmsme.gov.in.

The incubational support will be provided by Host Institutions, like:

  • Indian Institutes of Technology (IITs)
  • National Institutes of Technology ( NITs)
  • Engineering Colleges
  • Technology Development Centres, Tool Rooms, etc
  • Other recognized R&D&/or Technical Institutes/Centres, Development Institutes of DIP&P in the field of Paper, Rubber, Machine Tools, etc.

Business Incubator is a unit which will be given assistance for developing and doing research or study on any innovative idea that they want to develop as a business. For further details please refer the scheme document.

The assistance provided per incubatee /idea can be any amount between Rs. 4 Lakhs to Rs. 8 lakhs depending upon the requirement.

Yes. Under this scheme, 100 "Business Incubators" (BIs) are to be set up under Technology (Host) Institutions [@ say 25 per financial year] and each BI is expected to help the incubation of about 10 new ideas or units.

The application can be sent to MSME or any of the implementing agencies listed in the scheme document.

N. Training Institutions Scheme

The Ministry is implementing the Assisting to Training Institutions Scheme which envisages financial assistance for establishment of new institutions (EDIs), strengthening the infrastructure of the existing EDIs and for supporting entrepreneurship and skill development activities. The main objectives of the scheme are development of indigenous entrepreneurship from all walks of life for developing new micro and small enterprises, enlarging the entrepreneurial base and encouraging self-employment in rural as well as urban areas, by providing training to first generation entrepreneurs and assisting them in setting up of enterprises. The assistance shall be provided to these training institutions in the form of capital grant for creation / strengthening of infrastructure and programme support for conducting entrepreneurship development and skill development programmes.

O. Quality Management Standards and Quality Technology Tools (QMS/QTT)

Under the National Manufacturing Competitiveness Programme (NMCP) Scheme, one component is "Enabling MSME manufacturing sector to be competitive through Quality Management Standards/Quality Technology Tools (QMS/QTT)" was initiated in the XIth Five year plan. The main objective of the scheme is to sensitize and encourage MSEs to adopt latest Quality Management Standards/Quality Technology Tools (QMS/QTT) and to keep a watch on sectoral developments by undertaking the stated activities. The major activities under the Scheme are as:

  • Introduction of appropriate course modules for technical institutions
  • Organizing awareness campaigns for micro & small enterprises.
  • Organizing competitionâ€"watch (c-watch).
  • Implementation of quality management standards and quality technology tools in selected micro & small enterprises.
  • Monitoring international study missions.

P. Financial Assistance on 'Bar-Code'an NMCP Scheme

75% reimbursement of only one-time registration fee and 75% of annual recurring fee for first three years paid by MSEs to GS1 India for using of Bar Coding.

A. Entrepreneurship and Skill Development Programme (ESDP)

The objective of the programme is to motivate the youth to consider self employment or entrepreneurship as one of the career options. The ultimate objective is to promote new enterprises, capacity building of existing MSMEs and inculcate entrepreneurial culture in the country. As per scheme guidelines, in EAP and E-SDP there should be overall 40% women participation.

The programe includes the following :-

  • Industrial Motivation Campaigns (IMCs):- One day/Two days Industrial Motivation Campaigns are organized to identify and motivate traditional / non-traditional entrepreneurs having potential for setting up MSEs and for Clusters SPVs/ Industry Associations/ Chambers for propagating schemes for MSMEs.
  • Entrepreneurship Awareness Programmes (EAPs):- Entrepreneurship Awareness Programmes are being organized regularly to nurture the talent of youth by enlightening them on various aspects of industrial activity required for setting up MSEs. These EAPs are generally conducted in ITIs, Polytechnics and other technical institutions, where skill is available to motivate them towards self-employment.
  • Entrepreneurship-cum-Skill Development Programme (E-SDP):- Comprehensive training programmes are organized to upgrade skills of prospective entrepreneurs, existing workforce and also develop skills of new workers and technicians of MSEs by organising various technical cum skill development training programmes .
  • Management Development Programmes (MDPs):- The objective of imparting training here is to improve the decision-making capabilities of existing & potential entrepreneurs resulting in higher productivity and profitability.

Vocational and Educational Training:

The Tool Rooms and Technology Development Centers (TDCs) of the Ministry conduct long term, short term, trade/field-specific and industry-specific tailor-made courses as well as vocational training programmes.

To Take advantage of this please contact our Development Institutes or Tool Rooms or our control rooms which are spread across the country.

ESDP Scheme (In detail)

Objective New Enterprise Creation and Skill development

  • Entrepreneurship & Skill Training
  • Management Training
  • Aspiring Entrepreneurs
  • Aspiring and Existing Entrepreneurs
  • Entrepreneurship /Self-employment Motivation to different sections of the society including SC/ST/Women, differently abled, Ex-servicemen and BPL persons as career options.
  • Enterprise Facilitation for Ideation, Mentoring and incubation, Credit facilitation, Market accessibility, Enterprise Clinic, Diagnostic studies in the event of sickness, counseling and other facilities.
  • Entrepreneurship & Skill Training in Agro Based Products, Hosiery, Food & Fruit Processing Industries, Carpet Weaving, Mechanical Engineering Workshop/ Machine Shop, Heat Treatment, Electroplating, Basic/Advance Welding/Fabrication/Sheet metal work, Basic/Advance Carpentry, Glass & Ceramics etc.
  • Management capacity building Training to Existing Entrepreneurs and their supervisory staff in Industrial Management, Human Resource Management, Marketing Management, Export Management/Documentation & Procedures, Materials Management, Financial/Working Capital Management, Information Technology, Digital Marketing, Quality Management/QMS/ISO 9000/EMS, WTO, IPR, Supply Chain Management, Retail Management, Logistics Management etc.

How to apply : To be apply through MSME-DI, MSME-TC websites and to know more about the scheme link- http://dcmsme.gov.in/Enterprise&skillDevelopment.html

B. Assistance to Training Institutions (ATI) Scheme

Objective Skill development

  • Support for infrastructure and capacity building of training institutions of Ministry and existing State level EDIs.
  • Support for skill development programmes by training institutions of the Ministry of MSME.
  • Only for training institutions of Ministry of MSME and State level EDIs.
  • Assistance may be provided under the scheme for creation or strengthening/ expansion of infrastructure, including opening of new branches/centres to training institutions of Ministry of MSME and for meeting revenue deficit, if any, of National Institute for Micro, Small and Medium Enterprises (NIMSME).
  • The maximum assistance under the scheme to a State level EDI will be restricted to Rs.250 lakh in each case. This grant would be utilized for development of physical infrastructure, equipment, faculty training and development of capability in undertaking studies and research on issues related to MSME sector. This grant would be over and above the grant, if any, received by that institution earlier under the ATI scheme
  • For the purpose of grant under this category, an EDI owned and controlled by a State Government / UT would be selected as recommended by the State Government. The selected state level EDI will have to enter into a partnership agreement (or, MOU) with NIMSME to formulate and implement the approved proposal.

How to apply : Based on proposals received from the training institutions of the Ministry of MSME and State level EDIs. Please visit the below link to know more about the scheme: https://msme.gov.in/node/1767#ati1

C. A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE)

Objective Promote Skill Development and Entrepreneurship

  • Set up LBIs and TBIs to skill youths for own enterprises and incubation of innovative ideas
  • Maximum Rs. 1 cr. to Government agencies and maximum Rs. 50 lakhs to private agencies for procuring plant and machinery
  • Maximum Rs. 1 cr. given to new TBIs and maximum Rs. 30 lakhs to existing TBIs for procurement of plants and machinery.

Scheme applicable for LBIs

  • Any agency/institution of Govt. of India/State Govt.
  • Any Private Institution under PPP mode with any agency of Govt. of India/State Govt.

Scheme applicable For TBIs:

  • Existing Incubation Centers under Ministries/ Departments of Govt. of India
  • National/ Regional institutions of Govt. of India/ State Govt.
  • New TBIs can be set up by Industry Associations, Academic Institutions, R&D labs, Universities, Govt. entities and Technology Parks
  • LBIs are set up to train/skill youths in various vocations/fields primarily in agro-rural space to enable them, either to set up own enterprises or seek wage employment in related fields/industries.
  • TBIs are set up to promote youths to incubate new and innovative ideas in agro-rural space by providing basic incubation facilities.

How to apply : Proposal to be filled up as per the prescribed format given in https:// aspire.msme.gov.in and submitted to the Ministry through Member Secretary, Scheme Steering Committee at [email protected] .To know more about the scheme please visit https://aspire.msme.gov.in/ASPIRE/Home.aspx

1. What is the support available for Skill Development?

The Ministry conducts various types of training programme through its various organizations for self-employment as well as wage employment. The training programmes are primarily focused to promote self-employment in the country. Thus, all type of programmes have input which provide necessary information and skills to a trainee to enable him to establish his own micro or a small enterprise. The programmes include two-week Entrepreneurship Development Programme (EDP), Six Week Entrepreneurship Skill Development Programme (ESDP). One weak Management Development Programme (MDP), One Day Industrial Motivation Campaign (IMC) etc. For Monitoring of the programme a web-based system has been developed where coordinator of the programme is bound to feed all details of trainees including his photo and phone no. on the website. The same will be linked to the call center of Ministry where real time feedback is obtained from trainees. For further details please visit http://dcmsme.gov.in/Enterprise&skillDevelopment.html

Encourage new entrepreneurs to set up micro-enterprises through credit-linked subsidy support.

  • Bank financed subsidy program for setting up new micro-enterprises in non-farm sector.
  • Margin Money subsidy on Bank Loan ranges from 15% to 35% for projects up to Rs. 25 lakhs in manufacturing and Rs. 10 lakhs in service sector
  • For beneficiaries belonging to special categories such as SC/ST/Women/PH/Minorities/Ex-Servicemen/NER, the margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of projects is Rs.25.00 lakh in the manufacturing sector and Rs.10.00 lakh in the service sector.

Any individual above 18 years of age, SHGs, Charitable trusts, Registered Societies etc.

  • The own contribution of the beneficiary is 10% of the project cost in case of general category and 5% of the project cost in case of reserved category (SC/ST/OBC/PH/Women/Ex Servicemen/ NER) beneficiaries.
  • If the application for loan is approved, Banks sanction and release the balance amount of 90 to 95 percent of the total project cost suitably for setting up of the units by the beneficiaries.
  • In order to have sustainability of the projects/units set up under the scheme, support services are also provided in the form of Backward & Forward Linkages by organizing events like awareness camps, workshops, EDP training to the beneficiaries, exhibitions, etc.
  • Government of India has introduced online process flow of application and disbursement of Margin Money directly to financing branches.
  • Corporation Bank was engaged as a single National Level Agency for operating the online fund flow system of PMEGP.
  • One-page online application form is mandatory for individuals and institutional beneficiaries on the e-portal. The application form/PMEGP MIS portal is mobile friendly. SMS/e-mail alerts sent to the applicant automatically by the system or by the concerned officials at the process of each stage.
  • Model Projects of different KVI activities have been put up on PMEGP e-portal for the benefit of potential beneficiaries.
  • Model Village Industries projects prepared by NSIC have also been linked to the website.
  • To increase the registration of MSMEs in the country, the Government has undertaken measures that the PMEGP units can adopt the Udyog Aadhar Memorandum (UAM) to register online.

How to apply : Please visit the below mentioned website to apply https://www.kviconline.gov.in/pmegpeportal/pmegphome/

B. 2nd Loan for Upgradation / Expansion of existing PMEGP / MUDRA units

Technology up-gradation and expansion of existing units through credit support

  • To fulfill the need of additional financial assistance for upgradation and expansion of successful/well performing existing units
  • Existing well performing PMEGP/MUDRA units
  • Further financial assistance scheme for expansion/upgrade the existing PMEGP/MUDRA units for manufacturing and Service/Trading units from the year 2018-19
  • The maximum cost of the project under manufacturing sector for up-gradation is Rs.1.00 crore and Rs.25.00 lakh under Service/Trading sector.
  • Maximum subsidy would be 15% of the project cost (20% for NER and Hill States) i.e. Rs. 15.00 lakh in Non-NER and Rs. 20.00 Lakh for NER and Hill States. The balance amount of the total project cost are provided by Banks as term loan.
  • All existing units financed under PMEGP/MUDRA schemes running successfully whose Margin Money claim has been adjusted and the First loan (only CE) availed should have been repaid in stipulated time and WC may be exempted.
  • The units should have been making profit for the last three years.
  • Beneficiary may apply to the same financing bank, which sanctioned the loan for their unit, or to any other financing bank, which is willing to extend credit facility for second loan.
  • The beneficiary can choose any implementing agency and that may be different from the agency chosen for 1st loan.
  • Registration of Udyog Aadhar Memorandum (UAM) is mandatory.
  • The 2nd loan should lead to additional employment generation.
  • On PMEGP e-Portal, a separate application link provided to submit the application under 2nd loan for up-gradation.

How to apply : Please visit below link to apply https://www.kviconline.gov.in/pmegpeportal/pmegphome/

C. Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)

Objective Credit support

  • Credit guarantee for loans upto Rs. 2 crore, without collateral and third-party guarantee.
  • Guarantee coverage ranges from 85% (Micro Enterprise up to Rs 5 lakh) to 75% (others).
  • 50% coverage is for retail activity.

Existing Entrepreneurs & Aspiring Entrepreneurs

  • Any collateral/third party guarantee free credit facility (both fund as well as non-fund based) extended by eligible institutions, to new as well as existing Micro and Small Enterprises, including Service Enterprises, with a maximum credit cap of 200 lakh (Rupees Two Hundred lakh only) are eligible to be covered. Recently, guarantee coverage made eligible to select NBFCs and Small Finance banks.
  • The guarantee cover available under the scheme is to the extent of 50%/ 75% / 80% & 85% of the sanctioned amount of the credit facility. The extent of guarantee cover is 85% for micro enterprises for credit up to 5 lakhs. The extent of guarantee cover is 50% of the sanctioned amount of the credit facility for credit from 10 lakh to 100 lakhs per MSE borrower for retail trade activity.
  • The extent of guarantee cover is 80% for (i) Micro and Small Enterprises operated and/or owned by women; and (ii) all credits/loans in the North East Region (NER) for credit facilities upto 50 lakh. In case of default, Trust settles the claim up to 75% of the amount in default of the credit facility extended by the lending institution for credit facilities upto 200 lakh.

How to apply : Through Member Lending Institutions (Banks and NBFCs), To know more please visit https://www.cgtmse.in/

D. Entrepreneurship and Skill Development Programme (ESDP)

To Take advantage of this please contact our Development Institutes or Tool Rooms or our control rooms which are spread all across the country.

Other Schemes and related FAQ's

A. public procurement policy for mses order, 2012.

Objective : Providing Marketing support to the MSEs

  • Tender set free of cost
  • Exemption from the payment of Earnest Money
  • In tender, participating MSEs quoting price within price band of L1+15% shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where price is from someone other than an MSE and such MSE shall be allowed to supply upto 25% of the total tendered value.
  • 358 items reserved for exclusive procurement from MSEs.
  • The MSEs may also be given exemption in prior experience and turnover clauses.

The Public Procurement Policy mandates 25% annual procurement from MSEs by Central Ministries /Departments/Public Sector Enterprises (CPSEs).

Public Procurement Policy is meant for procurement of only goods produced and services rendered by MSEs and works contract is not covered under the purview of Public Procurement Policy.

MSEs registered with District Industries Centre (DIC) or Khadi & Village Industries Commission (KVIC) or Khadi & Industries Board (KVIB) or Coir Board or national Small Industries Commission (NSIC) or Directorate of Handicrafts and Handlooms or any other body specified by Ministry of MSME or having Udyog Aadhaar Memorandum (UAM) are eligible to avail the benefits of the policy.

Ministry of MSME has notified the Public Procurement Policy for MSEs Order, 2012 under Section 11 of MSMED- Act 2006 to provide marketing support to the MSEs which is effective from April 2012 and has become mandatory w.e.f 1st April 2015.

It was again reviewed in 2018 and amended vide SO 5670 (E) dated 9 November 2018.

The amended policy mandates 25% of annual procurement from MSEs by the Central Ministries/ Departments and CPSEs including 4% from MSEs owned by SC/ST and 3% from MSEs owned by Women

Any registered MSE can register themselves at GeM Portal and avail the benefits of the Public Procurement Policy.

How to apply : To know more about the scheme please visit http://dcmsme.gov.in

1.What is the share of procurement from MSEs out of the total procurement made by Central Government Ministries / Departments / Public Sector Undertakings?

Under amended Public Procurement Policy for MSEs, order 2012 a minimum 25 per cent share out of the total procurement by Central Government Ministries / Departments /Central Public Sector Undertakings are to be made from MSEs.

2.Whether there is any reservation for MSEs owned by SC/ST entrepreneurs?

Yes, out of 25% target of annual procurement from MSEs, a sub-target of 4% is earmarked for procurement from MSEs owned by Scheduled Caste (SC) / Scheduled Tribe (ST) entrepreneurs and 3%from MSEs owned by women entrepreneur. However, in event of failure of such MSEs to participate in tender process or meet tender requirements and L1 price, 4% sub-target for procurement earmarked for MSEs owned by SC/ST entrepreneurs and 3% earmarked to women entrepreneur will be met from other MSEs.

3.Who is eligible for availing benefits under the Public Procurement Policy?

The MSEs who are registered with District Industries Centers (DICs) / Khadi & Village Industries Commission (KVIC) / Khadi & Village Industries Board (KVIB) / Coir Board / NSIC / Directorate ofHandicrafts and Handloom or having Udyog Aadhaar Memorandum (UAM) or registered with any other body specified by Ministry of Micro, Small& Medium Enterprises (M/o MSME) areeligible for availing benefitsunder the Public Procurement Policy.

4.What is the date of implementation of this Policy?

The policy is applicable with effect from 1.4.2012. However, the policy has become mandatory with effect from 1.4.2015 onwards.

5.Whether Policy is transparent, competitive and cost effective?

The Policy rests upon core principles of competitiveness, adhering to sound procurement practices and execution of orders for supply of goods and services in accordance with a system which is fair, equitable, transparent, competitive and cost effective.

6.Whether the Policy is implemented in parts or fully from its inception?

As per Gazette Notification (S.O. 5670(E)dated 8th November,2018, It is mandatory for all CPSEs to procure at least 25% of their annual procurement from MSEs including 4% from MSEs owned by SC/ST entrepreneur and 3% from MSEs owned by women entrepreneur.

7.Whether there is any monitoring system for assessing the Government procurement from MSEs?

In tender, participating MSEs quoting price within band of L1+15% shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price is from someone other than an MSE. Such MSEs shall be allowed to supply at least 25% of total tendered value. In case of more than one such MSE, the supply will be shared proportionately (to tendered quantity).

8.Whether there is price match making facility for procurement from MSEs over large scale?

In tender, participating MSEs quoting price within band of L1+15% shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price is from someone other than an MSE. Such MSEs shall be allowed to supply up to 20% of total tendered value. In case of more than one such MSE, the supply will be shared proportionately (to tendered quantity).

9.What steps are to be taken by the Government Ministries / Departments / CPSUs to develop MSE Vendors to achieve their targets for MSE procurement?

Central Ministries/Departments /PSUs must take necessary steps to develop appropriate vendors by organizing Vendor Development Programmes /Buyer-Seller Meets and entering into Rate Contract with MSEs for a specified period in respect of

Under the Procurement and Marketing Support scheme, State Level VDP and National Level VDPs are regularly organized by the Ministry to develop suitable MSE vendors.

10.What steps are to be taken by the Government Ministries / Departments / CPSUs to develop vendors from MSEs owned by SC/ST entrepreneurs?

For enhancing participation of MSEs owned by SCs / STs in Government procurement, Central Government Ministries / Departments / PSUs have to take following steps:

Special Vendor Development Programmes/ Buyer-Seller Meets would be conducted by Departments/ CPSUs for SC/STs

Outreach programmes will be conducted by NSIC to cover more and more MSEs from SC/STs under its schemes of consortia formation; and

NSIC would open a special window for SCs / STs under its Single Point

Registration Scheme (SPRS).

A National SC/ST hub scheme has been launched in October 2016, for providing handholding support to SC/ST entrepreneur. which is being coordinated / implemented by the National Small Industries Corporation (NSIC) under this Ministry

11.What are the other benefits/ facilities to the MSEs available under the Policy?

To reduce transaction cost of doing business, MSEs will be facilitated by providing them tender sets free of cost, exempting MSEs from payment of earnest money, adopting e-procurement to bring in transparency in tendering process.

12. Whether there is any review mechanism for monitoring and review of the Policy?

A Review Committee has been constituted under chairmanship of Secretary, Ministry of MSME for monitoring and review of Public Procurement Policy for MSEs. M/o MSME will review and/or modify the composition of the Committee as and when required. This Committee will, inter alia, review list of 358 items reserved for exclusive purchase from MSEs on a continuous basis, consider requests from Government Departments, CPSUs for exemption from 25% target on a case to case basis and monitor achievements under the Policy.

13. Whether there is any kind of purchases that have been kept out of the purview of the Procurements under the Policy and if yes, how monitoring of the goal set will be done?

Given their unique nature, Defense armament imports will not be included in computing 25% goal for Ministry of Defense. In addition, Defense Equipment like weapon systems, missiles, etc. will remain out of purview of such policy of reservation. Monitoring of goals set under the policy will be done, in so far as they relate to the Defense sector, by Ministry of Defense itself in accordance with suitable procedures to be established by them.

14. From where the detail of the Policy can be obtained?

Policy details are available on the website of this office- http://dcmsme.gov.in .

15.Whether this Policy is mandatory under any Act?

Yes, The Policy is mandatory and notified under the MSMED Act,2006.

16.How many items are reserved for exclusive purchase from MSEs?

There are 358 items reserved for exclusive purchase from MSE Sector.

17.Whether this policy is applicable for works / trading activities also?

Policy is meant for procurement of only goods produced and services rendered by MSEs. However, traders are excluded from the purview of Public Procurement Policy.

18.Whether policy is applicable for MSEs registered with NSIC?

The policy is also applicable for MSEs registered with NSIC.

19.Whether policy provides benefits for exemption from Security Deposits to MSEs?

No, there is no exemption on security deposit/performance guaranty under the PPP.

20.Whether MSE quoting price within price band L1 + 15 % could be given complete supply to tender in case tender item is non-splitable / non-dividable?

In case of tender item is non-splitable or non-dividable, etc. MSE quoting price within price band L1+15% may be awarded for full/ complete supply of total tendered value to MSE, considering spirit of policy for enhancing the Govt. procurement from MSE.

21.Which are MSEs owned by SC / ST enterprises?

Definition of MSEs owned by SC / ST is as given under:

22.Whether Government Ministries / Departments / CPSUs those have meager value of total procurement may be exempted from policy?

Policy is applicable to all the Govt. Ministries / Departments / CPSUs in irrespective of volume and nature of procurement.

23.Whether policy has provision for exemption from 20% percentage procurement target?

The Review Committee may consider any request of Ministries / Departments / CPSUs for exemption from present25%procurement targets on case to case basis

1. What is Bank Credit Facilitation Scheme?

To meet the credit requirements of MSME units NSIC has entered into a Memorandum of Understanding with various Nationalized and Private Sector Banks. Through syndication with these banks, NSIC arranges for credit support (fund or non fund based limits) from banks.

2. What are the Salient features of Bank Credit Facilitation Scheme?

  • Facilitates credit to MSMEs by having an integrated mix of various public and private sector banks
  • Provides an option for MSMEs to apply for a new bank or switch over of an account to a different bank
  • Helps the MSMEs in completing documentation and thereafter submitting it to the bank
  • Helps the MSMEs in getting liberal rate of interests from the banks after a favourable rating is awarded to unit under Performance and Credit rating scheme of the Ministry.
  • To facilitate larger number of MSMEs who are desirous of availing credit
  • To provide handholding support to MSMEs.

3. How MSME loans can be availed under Bank Credit Facilitation Scheme ?

The MSME Unit can approach directly to any of our branch offices and submit their request for loan requirement from any of the banks under our tie up agreement. The official sitting at the branch will provide hand holding support to the MSME unit by assisting them in completing all documentation as required for further submission to the bank.

4. What are these Documents?

These documents are to be provided by the MSME unit based on the checklist of the banks.

5. What are the target clients who can avail loan under NSIC-FFC?

Existing MSME units as well as units applying for fresh loans can apply through this portal

6. Is there any cost for applying in this scheme?

No fee is charged from the MSME unit for applying for loan under this scheme.

7. How does this Bank Credit Facilitation Scheme help MSME ?

Under Bank Credit Facilitation Scheme ,the MSME(s) can get access to finance from banks based upon their lending policy and a focused attention is given to the credit proposals sponsored by NSIC.

8. Which are the lending institutions eligible for extending loans under FFCs?

The Banks/FI(s) which have entered into Memorandum of Understanding (MOU) with NSIC are the lending institutions under FFCs.

9. What are the types of loan facilities available in Bank for Micro, Small and Medium Enterprises?

  • Term loans for acquisition of fixed assets (viz, land/building, plant/machinery, other fixed assets) towards setting up of new units and for expansion, modernization and diversification in case of existing units.
  • Working Capital limits to meet the working capital needs of the MSME units in the form of open cash credit, overdraft against book debts and bill discounting facility.

Non fund based limits such as guarantees, letter of credit, foreign bank guarantees, foreign letter of credit etc.

10. Whether KYC compliance is mandatory for availing loans under MSME?

Yes, the loan applicants should open an operative account (Savings /Current Bank Account) which is KYC compliant with proper introduction, address proof, ID proof and photo etc; as stipulated by the bank.

11. What are all the documents to be submitted for availing loans under MSME?

The documents to be submitted vary based on the purpose of the loan.

The general documents as required are:-

  • Proof of Identity
  • Proof of Residence
  • Proof of Business address
  • Asset and Liability Statement of promoters, guarantors, directors etc. with latest income tax returns.
  • Rent Agreement / Lease Deed if business premises rented/leased.
  • Copy of SSI registration certificate/Entrepreneur’s Memorandum
  • Profile of the Unit (Name and address of promoters, experience, nature of activity, address of all offices/plants, share holding pattern etc.)
  • Last three year’s Balance Sheet with IT/ST returns
  • Projected Balance Sheet for next two years
  • Application in the prescribed format
  • CMA data in the prescribed format if limit required is Rs. 100 lakh and above.
  • Position of accounts with existing bankers
  • Project Report for term loan requirements
  • Estimates/Quotations/Sanctioned building plan etc.
  • Partnership Deed/Trust Deed/Rules & Bye laws/Memorandum and Articles of Association /Certificate of Incorporation etc.
  • Clearance from Pollution Control Board/Sanction from Electricity Board and other statutory authorities
  • Month-wise production and sales data for the current financial year, value of stock in process, finished goods, debtors, creditors etc.

12. What are the margin norms for loans under MSME?

Varies from bank to bank

13. What is the interest rate of MSME lo

14. What are the processing charges payable for MSME loans?

15. What are the security norms for MSME loans?

16. What is the method of assessing working capital requirement for MSME unit?

For units requiring working capital limits up to Rs. 5 crore, requirement is assessed as 25% of the projected turnover for the next year and the working capital limit shall be 20% of the projected turnover. The balance shall be brought by promoters as their contribution by way of equity / lo

For limits above Rs. 5 crore, the working capital requirement is assessed under Maximum Permissible Bank Finance Method. It may also vary from bank to bank.

17. What is the repayment period stipulated for term loans?

The repayment period varies depending upon the income generation from the unit and generally varies from 5-7 years. However, in exceptional cases it can go to 11 years.

18. How is working capital finance typically structured at bank?

At bank, working capital loans are tailored to suit the precise requirements of the client, in any of the various instruments available or structured as a combination of cash credit, demand loan, bill financing and non-funded facilities.

The banks accomplished credit crew can gauge the credit needs of each client and frame the exact solutions.

19. How does bank approve working capital loans?

Bank dedicated credit team has a deep understanding of the intricacies of various industries and is richly experienced in reckoning the business potential of companies.

These informed professionals can assess your specific credit requirements and tailor customized financial solutions to suit your risk profile and the working capital cycle of your company.

20.What is the repayment schedule like?

Working capital finance limits are normally valid for one year and repayable on demand. Specific, self-liquidating loans are linked to the natural tenor of the transaction (bill finance, export credit etc.).

21.What is meant by Priority Sector Lending?

Priority sector lending include only those sectors, as part of the priority sector that impact large sections of the population, the weaker sections and the sectors which are employment-intensive such as agriculture, and Micro and Small enterprises. Detailed guidelines on Priority sector lending are available in RBI Master Circular on Priority sector lending no. RPCD.CO.Plan.BC 9 /04.09.01/2013-14 dated July 1, 2013 . The Master circulars issued by RBI, to banks, on various matters are available on its website www.rbi.org.in and updated in July each year.

22.Are there any targets prescribed for lending by banks to MSMEs?

As per extant policy, certain targets have been prescribed for banks for lending to the Micro and Small enterprise (MSE) sector. In terms of the recommendations of the Prime Minister’s Task Force on MSMEs banks have been advised to achieve a 20 per cent year-on-year growth in credit to micro and small enterprises, a 10 per cent annual growth in the number of micro enterprise accounts and 60% of total lending to MSE sector as on preceding March 31st to Micro enterprises.

In order to ensure that sufficient credit is available to micro enterprises within the MSE sector, banks should ensure that:

40 per cent of the total advances to MSE sector should go to micro (manufacturing) enterprises having investment in plant and machinery up to Rs. 10 lakh and micro (service) enterprises having investment in equipment up to Rs. 4 lakh ; 20 per cent of the total advances to MSE sector should go to micro (manufacturing) enterprises with investment in plant and machinery above Rs. 10 lakh and up to Rs. 25 lakh, and micro (service) enterprises with investment in equipment above Rs. 4 lakh and up to Rs. 10 lakh. Thus, 60 per cent of MSE advances should go to the micro enterprises.

For details, the RBI Master Circular RPCD.MSME & FS.BC.No.5/06.02.31/2013-14 dated July 1, 2013 on 'Lending to Micro, Small and Medium Enterprises (MSME) Sector, may please be seen.

23. How many such specialized branches for lending to MSMEs are there?

As on March 2013 there are 2032 specialized MSME branches.

24. Are there specialized bank branches for lending to the MSMEs?

Public sector banks have been advised to open at least one specialized branch in each district. The banks have been permitted to categorize their MSME general banking branches having 60% or more of their advances to MSME sector, as specialized MSME branches for providing better service to this sector as a whole.

As per the policy package announced by the Government of India for stepping up credit to MSME sector, the public sector banks will ensure specialized MSME branches in identified clusters/centres with preponderance of small enterprises to enable the entrepreneurs to have easy access to the bank credit and to equip bank personnel to develop requisite expertise.

Though their core competence will be utilized for extending finance and other services to MSME sector, they will have operational flexibility to extend finance/render other services to other sectors/borrowers.

25. How do banks assess the working capital requirements of borrowers?

The banks have been advised by RBI to put in place loan policies governing extension of credit facilities for the MSE sector duly approved by their Board of Directors Vide RBI circular; RPCD.SME & FS.BC.No.102/06.04.01/2008-09 dated May 4, 2009 ).

Banks have, however, been advised to sanction limits after proper appraisal of the genuine working capital requirements of the borrowers keeping in mind their business cycle and short term credit requirement. As per Nayak Committee Report, working capital limits to SSI units is computed on the basis of minimum 20% of their estimated turnover up to credit limit of Rs. 5 crore. For more details paragraph 4.12.2 of the RBI Master Circular on lending to the MSME sector dated July 1, 2010 may please be seen.

26. Is there any provision for grant of composite loans by banks?

A composite loan limit of Rs.1 crore can be sanctioned by banks to enable the MSME entrepreneurs to avail of their working capital and term loan requirement through Single Window in terms of RBI Master Circular on lending to the MSME sector dated July 1, 2010. All scheduled commercial banks have been advised by our circular RPCD.SME&NFS. BC.No.102/06.04.01/2008-09 on May 4, 2009 that the banks which have sanctioned term loan singly or jointly must also sanction working capital (WC) limit singly (or jointly, in the ratio of term loan) to avoid delay in commencement of commercial production thereby ensuring that there are no cases where term loan has been sanctioned and working capital facilities are yet to be sanctioned. These instructions have been reiterated to schedule commercial banks on March 11, 2010.

27. What is Cluster financing?

Cluster based approach to lending is intended to provide a full-service approach to cater to the diverse needs of the MSE sector which may be achieved through extending banking services to recognized MSE clusters. A cluster based approach may be more beneficial

(a) In dealing with well-defined and recognized groups (b) Availability of appropriate information for risk assessment (c) Monitoring by the lending institutions and (d) reduction in costs.

The banks have, therefore, been advised to treat it as a thrust area and increasingly adopt the same for SME financing. United Nations Industrial Development Organisation (UNIDO) has identified 388 clusters spread over 21 states in various parts of the country. The Ministry of Micro, Small and Medium Enterprises has also approved a list of clusters under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) and Micro and Small Enterprises Cluster Development Programme (MSE-CDP) located in 121 Minority Concentration Districts. Accordingly, banks have been advised to take appropriate measures to improve the credit flow to the identified clusters.

Banks have also been advised that they should open more MSE focused branch offices at different MSE clusters which can also act as counseling.

Centres for MSEs. Each lead bank of the district may adopt at least one cluster (Refer circular RPCD.SME & NFS.No.BC.90/06.02.31/2009-10 dated June 29, 2010 )

28. What are the RBI guidelines on interest rates for loans disbursed by the commercial banks?

As part of the financial sector liberalization, all credit related matters of banks including charging of interest have been deregulated by RBI and are governed by the banks' own lending policies.

With a view to enhancing transparency in lending rates of banks and enabling better assessment of transmission of monetary policy, all scheduled commercial banks had been advised in terms of RBI circular;

DBOD.No.Dir.BC.88/13.03.00/2009-10on April 9, 2010 to introduce the Base Rate system w.e.f. July 1, 2010. Accordingly, the Base Rate System has replaced the BPLR (Bank’s prime Lending Rate) system with effect from July 1, 2010. All categories of loans should henceforth be priced only with reference to the Base Rate.

30. What is debt restructuring of advances?

A viable/potentially viable unit may apply for a debt restructuring if it shows early stage of stickiness. In such cases the banks may consider to reschedule the debt for repayment, consider additional funds etc. A debt restructuring mechanism for units in MSME sector has been formulated and advised to all commercial banks. The detailed guidelines have been issued to ensure restructuring of debt of all eligible small and medium enterprises. Prudential guidelines on restructuring of advances have also been issued which harmony the prudential norms over all categories of debt restructuring mechanisms (other than those restructured on account of natural calamities).

The relevant circulars in this regard are circular DBOD.BP.BC.No.34/21.04.132/2005-06 dated September 8, 2005 and circular DBOD.No.BP.BC.37/21.04.132/2008-09 dated August 27, 2008 which are available on our website www.rbi.org.in

31. What is the definition of a sick unit?

As per the extant guidelines, a Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if

Any of the borrower account of the enterprise remains NPA for three months or more.

There is erosion in the net worth due to accumulated losses to the extent of 50% of its net worth during the previous accounting year. This criterion enables banks to detect sickness at an early stage and facilitate corrective action for revival of the unit.

32. Are all sick units put under rehabilitation by banks?

No. If a sick unit is found potentially viable it can be rehabilitated by the banks. The viability of the unit is decided by banks. A unit should be declared unviable only if such a status is evidenced by a viability study.

33. Is there a time frame within which the banks are required to implement the rehabilitation package?

Viable / potentially viable MSE units/enterprises, which turn sick in spite of debt re-structuring, would need to be rehabilitated and put under nursing. It will be for the banks/financial institutions to decide whether a sick MSE unit is potentially viable or not. The rehabilitation package should be fully implemented by banks within six months from the date the unit is declared as potentially viable/viable. During this six months period of identifying and implementing rehabilitation package banks/FIs are required to do “holding operation” which will allow the sick unit to draw funds from the cash credit account at least to the extent of deposit of sale proceeds. The relevant circular on rehabilitation of sick units is RPCD.CO.MSME & NFS.BC.40/06.02.31/2012-2013 dated November 1, 2012 is available on our website.

34. What is the procedure and time frame for conducting the viability study?

The decision on viability of the unit should be taken at the earliest but not later than 3 months of the unit becoming sick under any circumstances. The following procedure should be adopted by the banks before declaring any unit as unviable:

A unit should be declared unviable only if the viability status is evidenced by a viability study. However, it may not be feasible to conduct viability study in very small units and will only increase paperwork. As such for micro (manufacturing) enterprises, having investment in plant and machinery up to Rs. 5 lakh and micro (service) enterprises having investment in equipment up to Rs. 2 lakh, the Branch Manager may take a decision on viability and record the same, along with the justification.

The declaration of the unit as unviable, as evidenced by the viability study, should have the approval of the next higher authority/ present sanctioning authority for both micro and small units. In case such a unit is declared unviable, an opportunity should be given to the unit to present the case before the next higher authority. The modalities for presenting the case to the next higher authority may be worked out by the banks in terms of their Board approved policies in this regard the next higher authority should take such decision only after giving an opportunity to the promoters of the unit to present their case. For sick units declared unviable, with credit facilities of Rs. 1 crore and above, a Committee approach may be adopted.

A Committee comprising of senior officials of the bank may examine such proposals. This is expected to improve the quality of decisions as collective wisdom of the members shall be utilized, especially while taking decision on rehabilitation proposals. The final decision should be communicated to the promoters in writing. The above process should be completed in a time bound manner and should not take more than 3 months.

35. What are the RBI guidelines on One Time Settlement scheme (OTS) for MSEs for settlement of their NPAs?

Scheduled commercial banks have been advised in terms of our circular RPCD.SME&NFS. BC.No.102/06.04.01/2008-09 dated May 4, 2009 to put in place a non -discretionary one time Settlement scheme duly approved by their Boards. The banks have also been advised to give adequate publicity to their OTS policies. (Refer circular RPCD.SME&NFS. BC.No.102/06.04.01/2008-09 dated May 4, 2009)

36. Apart from the loans and other banking facilities, do the banks provide any guidance to MSE entrepreneurs?

Banks provide following services to the MSE entrepreneurs:

Rural Self Employment Training Institutes (RSETIs)

At the initiative of the Ministry of Rural Development (MoRD), Rural Self Employment Training Institutes (RSETIs) have been set up by various banks all over the country. These RSETIs are managed by banks with active co-operation from the Government of India and State Governments. RSETIs conduct various short duration (ranging preferably from 1 to 6 weeks) skill upgradation programmes to help the existing entrepreneurs compete in this ever-changing global market. RSETIs ensure that a list of candidates trained by them is sent to all bank branches of the area and co-ordinate with them for grant of financial assistance under any Govt. sponsored scheme or direct lending.

Financial Literacy and consultancy support:

Banks have been advised to either separately set up special cells at their branches, or vertically integrate this function in the Financial Literacy Centres (FLCs) set up by them, as per their comparative advantage. Through these FLCs, banks provide assistance to the MSE entrepreneurs in regard to financial literacy, operational skills, including accounting and finance, business planning etc. (Refer circular RPCD.MSME & NFS.BC.No.20/06.02.31/2012-13 dated August 1, 2012)

Further, with a view to providing a guide for the new entrepreneurs in this sector, a booklet titled “Nurturing Dreams, Empowering Enterprises – Financing needs of Micro and Small Enterprises – A guide” has been launched on August 6, 2013 by the Reserve Bank. The booklet has been placed on our website www.rbi.org.in under the following path & URL:

RBI main page – Financial Education – Downloads – For Entrepreneurs (http://rbi.org.in/financialeducation/FinancialEnterprenure.aspx)

37. Can the MSE borrowers get collateral free loans from banks?

In terms of RBI circular RPCD.SME&NFS.BC.No.79/06.02.31/2009-10 dated May 6, 2010, banks are mandated not to accept collateral security in the case of loans upto Rs 10 lakh extended to units in the MSE sector. Further, in terms of RBI circular RPCD/PLNFS/BC.No.39/06.02.80/2002-04 dated November 3, 2003, banks may, on the basis of good track record and financial position of MSE units, increase the limit of dispensation of collateral requirement for loans up to Rs.25 lakh with the approval of the appropriate authority.

All scheduled commercial banks that are public/private sector banks and RRbs/NSIC/SIDBI/NETFI are the member lending institutions. (MLI) List of banks offering loans is mentioned below -

List of Bank's MSME Care Centres

Links of State Level Bankers’ Committees contact address

1. What is Trade Receivables Discounting System (TReDS)?

The objective of TReDS is to create Electronic Bill Factoring Exchanges which could electronically accept and settle bills so that MSMEs could encash their receivables without delay. This will not only give them greater access to finance but will also put greater discipline on corporates to pay their dues on time. For more details you may refer to RBI guidelines for setting up and operating TReDS on their website https://www.m1xchange.com/treds.php

2. Who are the participants in TReDS?

Sellers, buyers and financiers are the participants on a TReDS platform.

3. Who can participate as a seller in TReDS?

Only MSMEs can participate as sellers in TReDS.

4. Who can participate as a buyer in TReDS?

Corporates, Government Departments, PSUs and any other entity can participate as buyers in TReDS.

5. Who can participate as a financier in TReDS?

Banks, NBFC - Factors and other financial institutions as permitted by the Reserve Bank of India (RBI), can participate as financiers in TReDS.

6. How does TReDS work?

Broadly, following steps take place during financing / discounting through TReDS: Creation of a Factoring Unit (FU) - standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange - containing details of invoices / bills of exchange (evidencing sale of goods / services by the MSME sellers to the buyers) on TReDS platform by the MSME seller (in case of factoring) or the buyer (in case of reverse factoring); Acceptance of the FU by the counterparty - buyer or the seller, as the case may be; Bidding by financiers; Selection of best bid by the seller or the buyer, as the case may be; Payment made by the financier (of the selected bid) to the MSME seller at the agreed rate of financing / discounting; Payment by the buyer to the financier on the due date.

7. What is a Factoring Unit (FU)?

A Factoring Unit (FU) is a standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange. Each FU represents a confirmed obligation of the corporates or other buyers, including Government Departments and PSUs.

8. Who can create a FU?

In TReDS, FU can be created either by the MSME seller or the buyer. If MSME seller creates it, the process is called factoring; if the same is created by corporates or other buyers, it is called as reverse factoring.

9. Whether TReDS could deal with reverse factoring?

Yes. The TReDS could deal with both receivables factoring as well as reverse factoring.

10. Whether the MSME seller would have to pay to the financier in case the buyer defaults in repayment?

No. The transactions processed under TReDS are "without recourse" to the MSMEs.

11. Whether any authorization is required to set up and operate a TReDS platform?

Yes, authorization is required to be obtained from RBI under the Payment and Settlement Systems (PSS) Act, 2007.

12. What is the eligibility criteria for setting up and operating TReDS?

Eligibility criteria for the purpose of setting up and operating a TReDS platform is provided in the guidelines (as amended from time to time) for TReDS issued by RBI. These guidelines are available at the following path: www.rbi.org.in →"Payment and Settlement Systems" dropdown →"Guidelines". RBI's Press Release dated October 15, 2019 may also be read in this regard. The same can be accessed at the following web links: Click here and Click here

13. Where can I find the details of TReDS entities authorised by RBI?

List of all authorized Payment System Operators (PSOs), including TReDS, is available at the following path: www.rbi.org.in →"Payment and Settlement Systems" dropdown →"Information Useful to Customer"→"List of Authorised Entities – Payment System Operators".

14. Whether TReDS entities undertake KYC (Know Your Customer) of participants?

Yes. The KYC process adopted by the TReDS entities shall adhere to the "Master Direction – Know Your Customer (KYC) Direction, 2016" dated February 25, 2016 (as amended from time to time) issued by RBI.

15. What is a settlement file and who generates it in TReDS?

A settlement file provides information as to how much amount has to be debited from and credited to the accounts of participants (sellers, buyers and financiers), due on a date / time. In other words, it indicates how much a financier has to pay to an MSME seller, and how much a buyer owes to the financier on a date / time. The TReDS entities generate the settlement file and send the same to existing payment systems (for instance, National Automated Clearing House) for actual payment of funds.

16. Whether defaults on TReDS platform are the responsibility of TReDS entities?

No. Default handling is outside the purview of TReDS platforms.

1. How can I apply for Curfew/Movement/Emergency Pass during COVID-19 lockdown?

To regulate the movement of goods and people during the COVID-19 lockdown period, advisory has been issued by many State Governments to procure 'curfew/e-passes' for vehicles and individuals. More details can be found at the respective websites of your states.

2. What all special provisions have been made for transportation of commodities during COVID -19 situation?

For nationwide transportation of essential commodities and other goods, Ministry of Railways has introduced unhindered services of Special Parcel Trains. The details of Parcel Special Trains can be found at below link:

https://enquiry.indianrail.gov.in/mntes/q?opt=TrainRunning&subOpt=splTrnDtl

1. In view of COVID-19 outbreak, what measures have been taken with respect to statutory and regularity compliances?

Finance Minister announces several relief measures relating to Statutory and Regulatory compliance matters across Sectors in view of COVID-19 outbreak including:

No Late Fees on any Filings made from 1st April 2020 to 30th September 2020 (irrespective of the due date of the filing)

Maximum Interval between two board meetings shall be extended by 60 days for the next two quarters. (Up to 30th September 2020).

Newly incorporated companies are required to file a declaration for Commencement of Business within 6 months of incorporation. An additional time of 6 more months shall be allowed.

Every Company is required to have at least one resident director. Such a requirement has been relaxed (Until further notice) For further details please visit www.dcmsme.gov.in

1. What support is provided by the Ministry for enabling MSMEs to get credit rating?

The Ministry is implementing the Performance & Credit Rating Scheme, the main objective of the scheme is to provide a trusted third party opinion on the capabilities and creditworthiness of the MSEs so as to create awareness amongst them about the strengths and weakness of their existing operations.

This is to provide them an opportunity to improve and enhance their organizational strengths and credit worthiness, so that they can access credit at cheaper rates and on easy terms. NSIC was appointed as nodal agency to implement the scheme on behalf of the Government. Rating under the scheme is being carried out through empaneled rating agencies i.e. Credit Rating Information Services of India Limited (CRISIL), Credit Analysis & Research Limited (CARE), Onicra Credit Rating Agency of India Ltd. (ONICRA), Small and Medium Enterprises Rating Agency of India Ltd. (SMERA), ICRA limited and Brickwork India Ratings. Under this Scheme, rating fee payable by the micro and small enterprises is subsidized for the first year only and that is subject to maximum of 75% of the fee or Rs. 40000/-, whichever is less.

2. What is eligibility criteria for Scheme for Technology Acquisition?

Credit rating is not mandatory but it is in the interest of the MSE borrowers to get their credit rating done as it would help in credit pricing that is cost of funds (interest and other charges etc.) of the loans taken by them from banks.

3. Who can avail the benefits of these schemes?

With a view to facilitating credit flow to the MSME sector and enhancing the comfort-level of the lending institutions, the credit rating of MSME units done by reputed credit rating agencies and it should be encouraged. Banks are advised to consider these ratings as per availability and wherever appropriate structure their rates of interest depending on the ratings assigned to the borrowing SME units.

1. Is there any time limit for the Scheme for Technology Acquisition by State Government?

Yes. Currently the operative period of this scheme is from 01/01/2015 to 31/12/2019 until any further changes.

A new enterprise with new technology, existing enterprise will also eligible for new product or for improvement of production process, Such MSMEs intending to acquire technology for a specific product/ process.

4. What is the mechanism for disbursement of assistance to the unit for Scheme for Technology Acquisition?

5. Are these schemes limited to specific sectors only for Scheme for Technology Acquisition?

No. These schemes can be availed by any unit in any sector subject to approval. Further, no assistance is given for purchase of plant and machinery or equipment under this scheme.

6.For these schemes can units apply individually or they have to apply through any trade association / organization?

Any unit has to apply individually for these schemes.

7. Whether the Scheme is applicable for new MSME registered units?

1. What is eligibility criteria for the Scheme?

The eligibility criteria are as follows:

  • The Enterprise registered as MSME.
  • For setting up new enterprise and such enterprise has to commence production during the operative period.
  • For carrying out expansion or diversification by existing enterprise with investment in fixed capital more than 50% of its existing gross fixed capital investment However, such investment should be minimum 60% only in plant and machinery.
  • For carrying out Modernization of existing unit with investment in plant –machinery and equipment by more than 25% of its existing gross fixed capital investment, such modernization should be carried out by way of adopting new technology/ production process and/or improving quality of products.
  • Only one expansion/diversification and one modernization during operative period is eligible to new unit set up during operative period of the scheme.
  • Old & second hand machinery will not be eligible for assistance.

2. Is there any time limit for the Scheme?

3. Are these schemes limited to specific sectors only?

No. These schemes can be availed by any unit in any sector subject to approval.

4. Are there any conditions applicable to this scheme?

Conditions for Capital Investment Subsidy

  • Enterprise which has obtained first disbursement during the operative period of the scheme will eligible for the assistance.
  • In case term loan is sanctioned after one year from the date of commencement of commercial production, such enterprise will not eligible for subsidy under the scheme.
  • The Unit shall have to continue production at least for 5 years from the date of commencement of commercial production, and if, it fails to do so than subsidy already been disbursed will be recovered as land revenue arrears.
  • Total quantum of Capital Subsidy (State + Central) in any case shall not exceed the total loan amount disbursed by the bank/Financial Institutes.

Conditions for Interest Subsidy

  • Enterprise shall have option for date of availment of interest subsidy either from the date of first disbursement of the loan or from the date of commencement of commercial production. This opted date will be final and period of 5 year will start from that date.
  • The interest subsidy will be reimbursed to the enterprise who pays regular installments and interest thereof to the financial institution. If the enterprise becomes defaulter for any period, it will not be eligible for reimbursement of interest subsidy for that default period.
  • In case term loan is sanctioned after one year from the date of commencement of commercial production, such enterprise will not eligible for Interest subsidy under the scheme.
  • Total quantum of Interest Subsidy (State + Central) in any case shall not exceed the total loan amount disbursed by the bank/Financial Institutes.

**For other conditions and information's, refer to the scheme details available on http://ic.gujarat.gov.in/?page_id=3776

5. What is the mechanism for disbursement of assistance to the unit for Scheme for Technology Acquisition?

The assistance is generally provided in form of deduction from the outstanding loan amount at the end of the tenure of repayment. However, the policies of different banks may be different for adjustment of subsidy amount for either Capital Investment subsidy or Interest Subsidy.

6. For this scheme can units apply individually or they have to apply through any trade association / organization?

MSME unit has to apply individually for this scheme.

7. Where to apply for availing benefits of this scheme?

District Industries Center (DIC).

8. Can both manufacturing and service provider units apply for this scheme?

No. This scheme is only available for the manufacturing units registered under MSME.

1. What is the assistance provided under this scheme?

50% of rent paid or Rs. 50000/- whichever is less for units situated in Municipal corporation areas or areas falling under urban development authority. For others, the assistance is 50% of rent paid or Rs. 25000/- whichever is less.

2. Who can avail the benefits of this scheme?

Any micro and small manufacturing unit registered under MSME. Units registered under Medium category and service providers cannot take assistance under this scheme.

3. For how many years the assistance is available to a unit under this scheme?

Assistance is available for maximum of 3 years under this scheme.

4. What is the mechanism for disbursement of assistance to the unit?

The assistance is provided in form of re-imbursement after submission of all the details with supporting.

5. Whether the Scheme is applicable for new MSME registered units?

For further details on below queries, you may please visit www.dcmsme.gov.in or GJEPC's website https://www.gjepc.org

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Jewelry Business Plan Example

MAY.06, 2018

Jewelry Business Plan Example

Do you want to start jewelry business?

Do you want to start a jewelry business? Well, if you have what it takes to design attractive and eye-catching jewelry and you also have a passion for it then it is probably the right business for you. The biggest benefit of starting this business is that it offers an extremely high ROI and never goes down during any part of the year because people don’t hesitate to spend cash on something which makes them look good. But before you move on to starting this jewelry business plan , you will have to prepare a comprehensive business plan for jewelry . It will not only help you in startup but will also serve as the basis of your company’s future operations. In case you don’t know how to start a jewelry business or write a business plan for it, you can take help from this sample business plan for jewelry business startup named ‘NM Jewelry Store’.

Executive Summary

2.1 the business.

NM Jewelry Store will be a licensed and insured jewelry manufacturing business that will provide high-quality, attractive and low-cost jewelry products to its customers. The business will be based in Manhattan.

2.2 Management

NM Jewelry Store is a sole proprietorship owned by Nick Monty. Nick is a passionate Jewelry designer who has been in this industry for more than 10 years. The company’s main management framework comprises of sales executives, designers, and artisans.

2.3 Customers

You should carry out proper research to know your customers before you start your own jewelry business . Our customers include the married and committed couples as well as the teens and adults living in downtown Manhattan.

2.4 Business Target

Our business targets to be achieved within next three years are as follows:

business plan for jewellery business - 3 Years Profit Forecast

Company Summary

3.1 company owner.

NM Jewelry Store is a sole proprietorship owned by Nick Monty. Nick is a passionate jewelry designer who has been serving the jewelry industry for more than 10 years.

3.2 Why the Business is being started

Nick is passionate about designing jewelry and is known all over the United States due to his innovative designs. Nick’s specialty is to design extremely detailed jewelry sets using the proper mix of precious metals which also cost less than other similar sets available in the market. The jewelry business plan is being started with the aim of making profits in this industry by introducing extremely low-cost designs.

3.3 How the Business will be started

NM Jewelry Store will be started in downtown Manhattan in a leased location which was previously used by a travel agency. The facility will be used for making jewelry by artisans and designers and will also be used as a store to display the jewelry. In addition to the office furniture and the usual inventory, the company will procure computers, color printers, scanners, jewelry design software, jewelry cutting and anodizing equipment as well as the other necessary tools. The financial experts have forecasted following costs needed to start a jewelry business .

Jewelry Business Plan - Startup cost

Services for customers

Before starting a jewelry store, you must decide what services/products will you offer to your customers. You can also take help from this jewelry business plan template in case you don’t know what services you can provide. NM Jewelry Store will be a licensed and insured jewelry manufacturing business which will provide high-quality, attractive and low-cost jewelry products to its customers. Our main products/services include:

  • Jewelry Products: Our main jewelry products that will be designed as well as manufactured by us include rings, necklaces, earring, anklets, bracelets, lockets, pendants, tie pins, shirt studs, brooches, and tiaras.
  • Jewelry Sets: This category includes jewelry sets designed and manufactured by us. A jewelry set include similarly designed ring, necklace, earrings, and bracelets.
  • Customized Jewelry: We will also make customized jewelry in accordance with the design requirements of our customers. The customers can either provide us with their desired designs or can tell us their requirements through any channel.
  • Jewelry Repairing, Resizing and Polishing: We will also provide repairing, resizing and polishing services to our customers. These services are aimed at those people who receive jewelry in the gift but the sizes don’t match quite exactly and they have to resize them as per their size requirements. Similarly, the jewelry owners also need to regularly polish their jewelry products for a better look. These services are not aimed to directly generate revenue, instead, we aim to promote our products by providing these services to the jewelry owners.

Our jewelry products will be made from silver, gold, and titanium. Platinum will only be used in customized products at the request of customers. Customers can also order our products online via our official website.

Marketing Analysis of jewelry business

The most important component of an effective business plan for jewelry business is its accurate marketing analysis and a good business plan for jewelry business can only be developed after this stage. If you are starting on a smaller scale, you can do marketing analysis yourself by taking help from this sample jewelry business plan or any other jewelry business plan example available online. If you are starting on a larger scale, it is always best to seek the counsel of marketing experts for developing a good business plan for jewelry .

The success or failure of a business totally depends upon its marketing strategy for business which can only be developed on the basis of accurate marketing analysis. Therefore, it must be considered before developing the business plan for jewellery business .

5.1 Market Trends

The market and industry trends of a jewelry business plan can be learned from the internet or from this sample business plan for jewelry business . The United States is the third biggest jewelry market in the world. According to IBIS World, the jewelry industry is valued at $35 billion and has grown at a projected rate of 1.2% from 2011 to 2016. Currently, there are more than 62,000 jewelry stores in the United States which are responsible for employing more than 170,000 people. The sale of branded jewelry is less as compared to the sales from private jewelry stores. In short, jewelry industry has a lot of potential and can be immensely profitable provided that you plan your jewelry business successfully.

5.2 Marketing Segmentation

Our target market is the residential community living nearby at the 10 minutes’ drive from our office. The community consists of all types of people from varying backgrounds. As per the financial position, nearly half of the community has a monthly income ranging from $40k to $50k while nearly 10% people have incomes even around $100,000. There are currently more than 738,000 households in Manhattan out of which 17.1% have children under the age of 18 living with them, 25.2% are married couples living together and 12.6% have a female householder with no husband present. 59.1% are non-families, out of which 48.0% of all households are made up of individuals and 10.9% have someone living alone who is 65 years of age or older. It is very important to analyze the market segmentation of the future customers of your products or services because a successful and efficient marketing strategy can only be developed after we completely know our potential customers. Our experts have identified the following type of target audience which can become our future consumers:

Jewelry Business Plan - Marketing Segmentation

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Couples:

Our first target group will be the married couples as well as the committed people. These people are most likely to buy jewelry products for each other. For instance, the engaged or married people often tend to buy jewelry products for their beloved on many occasions like Valentine’s day, birthdays, anniversaries. This group will be the biggest consumer of our products and hence our marketing strategy will be specifically built to attract them.

5.2.2 Teens:

Our second target group comprises of teens who buy jewelry for themselves for wearing at parties, functions or in daily life. These teens usually can’t afford expensive products and often prefer the look of jewelry to its quality.

5.2.3 Adults:

The third group comprises of adults who buy jewelry for their kids, family, friends or themselves. They are usually settled in their lives and can afford expensive products.

5.3 Business Target

Our main business targets to be achieved as milestones over the course of next three years are as follows:

  • To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
  • To balance the initial cost of the startup with earned profits by the end of the first year

5.4 Product Pricing

After considering the market demands and the competitive environment, we have priced our products 10% cheaper as compared to our competitors, with prices starting from $100.

After identifying the market trends, market demand, and the potential customers of the startup, the next step is to define an effective strategy to attract the potential customers. Like marketing analysis, sales strategy is also an important component of a jewelry store business plan and must be properly developed before thinking about how to start your own jewelry business .

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6.1 Competitive Analysis

Our biggest competitive advantage will be the quality of our innovative products. Our products will be attractive, eye-catching and will be offered at comparatively lower prices as compared to our competitors. In addition to that, our second biggest competitive advantage will be our exceptional customer service. We will make sure that our customers get the best products which also suit their budget. As with the customized products, we will make revisions until our customers are fully satisfied. Our location is also one of our biggest competitive advantages since we will be based in downtown which is considered an ideal location for starting a jewelry business . Another important aspect is that no jewelry store offers jewelry repairing and resizing services within a 5 km circle from us which will also increase the number of visitors to our store.

6.2 Sales Strategy

After carrying out a detailed analysis, our experts came up with the following brilliant ideas to advertise and sell ourselves.

  • We will emphasize on our search engine marketing efforts to ensure a strong web presence.
  • We will get featured in the local news or on a certain website by a popular blogger to increase our popularity.
  • We will advertise our jewelry store in relevant business magazines, newspapers, TV stations, and social media.
  • We will offer a 5% discount on our products for the first month of our launch.

6.3 Sales Monthly

business plan for jewellery business - Sales Monthly

6.4 Sales Yearly

Jewelry Business Plan - Sales Yearly

6.5 Sales Forecast

Jewelry Business Plan - Unit Sales

Personnel plan

Personnel plan is also an important component of a good jewelry store business plan . The personnel plan of our company is as follows.

7.1 Company Staff

Nick will act as the General Manager of the company and will initially hire following people:

  • 1 Accountant for maintaining financial and other records
  • 2 Sales Executives responsible for marketing and discovering new ventures
  • 4 Designers for designing the jewelry
  • 8 Artisans for manufacturing, repairing, resizing and polishing jewelry
  • 3 Assistants for helping with day-to-day operations
  • 1 Technical Assistant for managing the company’s official website and social media pages
  • 4 Customer Representatives to interact with customers and record their orders

7.2 Average Salary of Employees

Financial plan.

The financial plan covers all the expenses needed for the startup so you must develop it before starting your own jewelry business . The financial plan should craft a detailed map about the cost of inventory, payroll, equipment, rent, and utilities needed for the startup and how these costs will be covered by the earned profits. It is recommended that you hire a financial expert for guiding you how to start a gold jewelry business and make an accurate financial plan for your company.

8.1 Important Assumptions

8.2 brake-even analysis.

business plan for jewellery business - Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Jewelry Business Plan - Profit Monthly

8.3.2 Profit Yearly

Jewelry Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

business plan for jewellery business - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Jewelry Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

business plan for jewellery business - Projected Cash Flow

Download Jewelry Business Plan Sample in pdf

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Gold Jewellery Business Plan in India 2021

Gold Jewellery Business Plan in India : Gold and silver jewellery is a major contributor to Indian culture, so it is often seen that people here are always eager and excited to buy gold and silver jewellery .

Presently, even when boys and girls are in a relationship as girlfriends and boyfriends to test each other before marriage, they are given each other as gifts made of gold or silver rings, neck chains, etc. Huh.

This is to say that even with the changing times, people’s attachment to gold and silver has not decreased but has increased.

India is a country full of diversities based on culture and traditions. It is to say that in almost every state, living, dress, culture, traditions are different from each other, but in spite of this, the passion for jewellery is equal to the women of every state. Is.

Gold and silver are the most common ornaments in our country in India, which reach out to almost every income group.

It is different than whoever has more money , will have more gold and silver jewellery , who will have less, he will have some essential jewellery for the women of his house.

It has also been seen that depending on the state, the size of the jewellery made of gold and silver, the design, their names are all different, there are only a few ornaments that women from all over India wear the same design shape, etc. Huh.

Therefore, the entrepreneur starting such a business must try to know about the local and traditional jewellery of the place where he is doing business.

Gold Jewellery Business Plan in India

Table of Contents

What is the business of gold and silver jewellery

The finest example of gold and silver jewellery business is from the goldsmith shop, which is also in our street locality. Whenever we need to make gold or silver jewellery , we go to the goldsmith shop located in our local market.

Therefore, a business in which the entrepreneur is making and selling gold and silver jewellery to the people and also buying old gold and silver jewellery from the people can be called the business of gold and silver jewellery .

Why start a gold and silver jewellery business?

As we all know that in our society, jewellery is considered a status symbol, the man who wore expensive metal jewellery and the more worn it is estimated that he will belong to that rich family.

But it is generally seen that the most popular trend in India is that of gold and silver jewellery . That is why it is a custom to make new gold and silver jewellery for people on occasions such as getting engaged, getting married, having a festival, etc.

The jewellery industry is one of the fastest-growing industries in India, contributing 6-7% of the total GDP. This can be gauged by how much demand there is for gems and jewellery in India. If you have ever been to a goldsmith shop in your local market, then you probably do not need to explain why doing gold and silver jewellery business. Needed.

Although it is so important to start this kind of business, it is not a matter for everyone to settle, because the matter is related to precious jewellery and metals, then to start such a business, a lot of investment may be required.

However, in the rural areas, many goldsmiths also find such people who have started this kind of business with very little investment and gradually increased it to the forefront.

In the Indian tradition, making gold and silver jewellery on engagement, wedding, anniversary, festival, and other auspicious occasions is considered auspicious, and it has become a necessity of the people at present. Therefore, starting this type of business can prove to be very beneficial.

How to start a gold and silver jewellery business?

If we talk a few years before today, there was hardly any license and registration requirement to start this kind of business, but currently, BIS registration has become almost mandatory to start such a business because Hallmark The government has issued guidelines to sell jewellery .

But even today, many such goldsmith shops will be found in rural areas, which will be running without BIS registration, and their loyal customers will still be buying from them. So let us know how an interested person can legally start his own business of gold and silver jewellery .

1. Select the type of business

The entrepreneur who starts the business of gold and silver jewellery must first decide which type of business he wants to adopt because the entrepreneur has opportunities to work as a retail jewellery business, online jewellery retail, gold trading, gold importer, and manufacturer of jewellery .

ALSO READ: Manufacturing Business Ideas in India

2. Find out about the gold and silver supplier

However, as we have mentioned in the above sentence, here we are talking about the business of making gold and silver jewellery and selling them in the local market as retail.

For this, the next step of the entrepreneur should be to find the supplier of gold and silver at that location if the entrepreneur wants to know about this process in the already existing goldsmith shops, which supplies at their shop.

As it is a business involving expensive metals, it is necessary to be very careful while choosing such a supplier so that the entrepreneur can protect himself and his customers from any fraud.

Keep in mind that their purity is the key to business in the gold and silver business. If anything goes wrong with any customer, then the entire business of the entrepreneur can be in danger. There is a lot of prudence and discretion in the choice of supplier.

3. Get training and experience

When the entrepreneur is in the business of making gold and silver jewellery , it is natural that he will need artisans who are capable of making any design and type of jewellery from gold and silver.

Even though the entrepreneur can do this work by hiring artisans, but if he is not aware of this work, then he must get training for it.

For this, the entrepreneur can get training from a jewellery company and can get some months or even years of experience.

When the entrepreneur acquires both training and experience, he will not be compelled to hire artisans. In the initial stages, he can start this type of business on his own as well, and when he feels that he is not handling the work alone, then after that, he can hire the workforce according to the requirement of the work.

4. Obtain the required license and registration

The entrepreneur may require the following licenses and registrations to start his own business of making gold and silver jewellery .

  • Provide a legal form to your business and register as a proprietorship or one-person company.
  • GST registration
  • PAN in the name of current bank account and business.
  • BIS Certificate for Hallmark.
  • If the entrepreneur wants to import gold from outside countries or wants to export, Import Export Code.

ALSO READ: How to Start a Cosmetic Business

5. Start gold and silver business by renting a shop

To start a business of gold and silver jewellery , the entrepreneur will need to hire a shop in a local market or a crowded, busy place.

The shop will run even in small spaces like 150-200 sq ft, but there should be the proper place to show the jewellery to the customers and proper place for the customers to sit.

Apart from this, it is very important to have CCTV Camera installed in the entire shop where jewellery is being made, and there should be CCTV cameras covering almost all the places where jewellery is being shown to the customers. So that if something goes wrong, it can be detected, or people do not have the courage to make a mistake.

Keep in mind that honesty is very important in this kind of business because people take their years’ earnings and reach goldsmith shops to make gold and silver jewellery , so any cheating or deceit with them is not ethical and commercially reasonable to cut.

VIDEO: Gold Jewellery Business Plan

Question: How to open a gold and silver shop?

Answer: To open a gold and silver shop, you have to rent an empty shop. By doing the work of interior etc., in it, BIS hallmark registration will be done.

Question: What is a gold and silver merchant called?

Answer: The merchant of gold and silver is called the goldsmith, and the artisan who makes jewellery from these metals is called a goldsmith.

Question: How much will it cost to start a gold and silver business?

Answer: Gold and silver are precious metals. Therefore, large-scale investment is required to start such a business.

Question: Why is the silver and silver business profitable?

Answer: The gold and silver business is beneficial because most of the women in our country, India, prefer jewellery made from these two metals.

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These homegrown jewellery retail gems have been instrumental in shaping the country’s gems and jewellery sector and continue to shine bright amidst stiff competition on the global stage

Bengaluru:  Renowned for intricacy and cultural significance, Indian jewellery has transcended borders to captivate global markets. The industry has witnessed a surge in demand, fuelled by a burgeoning middle class, increasing disposable incomes, and a penchant for luxury goods.

In 2024, the India’s jewellery market revenue is projected to reach $81.26 billion. It is further expected to witness an annual growth of 4.59% from 2024 to 2028, according to data analytics platform Statista.

Here are five Indian jewellery brands, listed in descending order of the number of stores they operate. These jewellery retail gems have been instrumental in shaping the country’s gems and jewellery sector and continue to shine bright amidst stiff competition on the global stage.

Tanishq, the jewellery brand from Tata Group’s Titan Company, was founded in 1994. Titan’s jewellery division includes a portfolio of brands such as Tanishq, CaratLane, Zoya and Mia by Tanishq.

In 1996, Tanishq opened its first retail showroom in Chennai and the first international store in 2020, in Dubai. Presently, the retail chain boasts over 400 exclusive outlets spanning across more than 240 cities nationwide, along with over 13 international boutiques across UAE, USA, Qatar and Singapore.

Today, the Bengaluru-based company is planning to have 50 boutiques globally across the United Kingdom, Australia and Malaysia, according to a previous press release.

  • Reliance Jewels

Reliance Jewels, the jewellery brand of Reliance Retail, operates under Reliance Retail Ventures Ltd (RRVL), the holding entity encompassing all retail businesses within Reliance Industries Ltd.

The Mumbai-based jewellery brand started its journey in 2007, with a single showroom nestled in Iscon Mall, Ahmedabad. The brand specialises in gold, silver and diamond jewellery.

Today, Reliance Jewels owns and operates over 400 flagship showrooms and shop-in-shops spread across more than 200 cities.

  • Malabar Gold & Diamonds

Malabar Gold & Diamonds, the flagship company of Malabar Group was established in 1993 by M P Ahammed in Kerala. In 2001, the jewellery retailer stepped outside of India to open its first store in the Gulf region.

The brand that started its journey from a 400 sq. ft. shop in Calicut, currently, is today a chain of over 340 showrooms spread across India, United Arab Emirates, Qatar, Kuwait, Oman, Kingdom of Saudi Arabia (KSA), Bahrain, Singapore, Malaysia, USA, UK, Canada and Australia. It also has multiple offices, design centres, procurement centres, and factories.

With an annual turnover of $5.2 billion, the brand is charting expansion into new countries such as South Africa, Egypt, Bangladesh, Turkey and New Zealand, according to a previous press release.

Omni-channel jewellery brand CaratLane was established in 2008 by Mithun Sacheti and Srinivasa Gopalan as an online brand offering rings, earrings, bracelets, bangles and solitaires.

In July 2016, the Tata Group purchased a 62% stake in CaratLane through its subsidiary Titan and the brand became ‘CaratLane – a Tanishq Partnership’. In September 2018, the retailer launched Shaya by CaratLane, a silver jewellery brand.

The Chennai-based jewellery brand currently operates over 265 retail stores across 100 Indian cities.

  • Kalyan Jewellers

Kalyan Jewellers was founded in 1993 by T. S. Kalyanaraman with an initial capital of Rs 75 lakh. The first gold and diamond jewellery showroom opened in the Thrissur district of Kerala. It remains the company’s headquarters to this day. Kalyan Jewellers made its international debut in 2013.

As of December 2023, the total count of the company’s showrooms stood at 235, spread across India and the Middle East.

Currently, the jewellery firm plans to open 30 showrooms by the end of fiscal year (FY) 2024 in India and the Middle East. Additionally, it is gearing up to unveil more than 80 showrooms in FY25, as per a PTI report.

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gold jewellery business plan in india

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Explained: New gold jewellery hallmarking system from April 1; how to trace purity of gold before buying

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Gold jewellery: How to check gold purity stamp before buying; know new hallmarking rules

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There is a great opportunity to do gold refining in India: IFSCA Chairman

He said that there is a scope for moving up the value chain in the sector besides being a trading hub of gold.

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"Being a large buyer, there is a great opportunity to do the refining. India imports about 250 tones of dore for refining. I think, there is a case to look at whether refining can be commenced in the GIFT city as well. Enabling regulations are in place and if there are any further improvements required, we (can) look at that as well," Rajaraman said.

He added that some tweaks to tax policies or customs tariffs might be required to facilitate that and "we shall definitely look at it".

"So there is a case for refining in GIFT city," he added.

He was speaking at a gold conference, organised by IIM Ahmedabad- IGPC (India Gold Policy Centre) here.

The IFSCA was established on April 27, 2020 under the International Financial Services Centres Authority Act, 2019. It is headquartered at GIFT City, Gandhinagar in Gujarat.

The IFSCA is a unified authority for the development and regulation of financial products, financial services, and financial institutions in the International Financial Services Centre (IFSC) in India.

At present, the GIFT IFSC is the maiden international financial services centre in India.

India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. In volume terms, the country imports 800-900 tonne of gold annually.

Rajaraman said that the authority is also working with the RBI on the gold metal loans and the leasing ecosystem. He also pitched for developing an index of financialisation of gold as it is an important commodity like land.

"...It (gold) is stuck in the cupboards of ordinary citizens...800 tonne stuck in RBI vaults...It is not circulated in the economy. How to effectively use it for the benefit of the economy? Are there any risks emanating from such huge reserves accumulating without being financialised? These are some questions which we need to answer," he said adding circulation of this gold in the economy would help in adding value and creating jobs.

Further, he added that as India is such an important player in the gold and silver markets in the globe, "then I think we must be calling the shots" in the international market, but unfortunately, it's not the case and that is a subject matter of research.

"What would it take to actually ensure that India calls the shots in the international markets? You are buying one fourth of the world's gold and about 80 per cent of the world's silver. I think, there must be certain levers that we are really not knowing or we are really not pulling, which needs to enable us to call shots in the global markets," he said.

The chairman also pitched for integrating with global best practices such as responsible sourcing and good delivery systems.

"See how we can develop good delivery standards in India. We are a large buyer and we must have our own good delivery standards," he said adding, "the role of GIFT city in the gold market will further improve, if we are able to provide delivery across major cities in the country".

IGPC at IIM- Ahmedabad was set up in November 2014 with a grant from the World Gold Council. It conducts research on the gold Industry in India.

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Uae: why do shoppers buy gold, jewellery in dubai and sell in other countries, residents and visitors carrying more than dh60,000 worth of cash, gold, jewellery, diamonds are required to disclose it while travelling.

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Shoppers are increasingly buying gold and precious metal jewellery in Dubai and the selling the valuables in other countries - particularly South Asian ones.

Industry executives say that consumers do this due to the trust they have in the quality of the gold and jewellery sold in Dubai. Buyers also benefit from the disparities in the prices.

Moreover, some countries also levy tax on gold and jewellery purchases above a certain amount and there is no tax on buying gold jewellery in Dubai. If passengers exceed the permitted limit to carry gold and jewellery, the items could be confiscated by the authorities or passengers are asked to pay customs duty, depending on the policies of the each country.

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For instance, an Indian male passenger who has been residing abroad for more than a year is allowed to carry jewellery for a value of Rs50,000 (Dh2,213), whereas a female passenger can carry jewellery worth Rs100,000 (Dh4,425).

UAE residents and visitors carrying more than Dh60,000 worth of cash, gold, jewellery, diamonds and other valuables are required to disclose it while travelling into or out of the country.

“We have observed customers buying gold jewellery in Dubai and selling it in other countries, especially India. However, this practice is primarily influenced by the disparities in gold prices, rather than differences in quality," said Shamlal Ahamed, managing director of international operations, Malabar Gold and Diamonds. "Gold prices in Asian countries such as India are around 12-15 per cent higher than that in Dubai, which converts to a significant profit for consumers who engage in such cross-country buying and selling."

On Wednesday, the 24K variant of the precious metal was trading at Dh246.5 (Rs5,570) per gram in Dubai. Comparatively, the 24K was trading at Rs6,323 per gram (Dh280) in India.

Last month, India hiked the import duty on gold and silver findings used in making jewellery and on precious metal coins from 11 to 15 per cent, to bring them in line with duties on gold and silver bars.

In a notification issued earlier, India's Ministry of Finance also hiked the import duty on spent catalysts containing precious metals from 10.1 per cent to 14.35 per cent.

Residents and visitors from South Asian countries are one of the largest buyers of gold jewellery in Dubai.

“Jewellery in Dubai is known for its highest quality benchmark and best price. Jewellers in Dubai focus on the volume of business. Hence, for most jewellers, the making charge is fixed per gram and will be much lower compared to markets such as India, where making charge is calculated in percentage of the gold price. Fluctuations in the gold rate do not affect the making charge of jewellery in Dubai,” explained Tawhid Abdullah, chairman of Dubai Jewellery Group.

He added that the customs duty hike in India has further increased the price of jewellery in India. “Tourists can avail of VAT refunds at Dubai airports which is an added advantage. Compared to most parts of the word, Dubai is still the most cost-effective place to purchase jewellery of any kind.”

John Paul Alukkas, managing director Joyalukkas Group, said the stringent quality standards and authenticity of the Dubai golden market is what attracts global buyers.

  • Dh200 monthly payment plan: Why shoppers prefer buying gold in Dubai
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gold jewellery business plan in india

Gold, silver price today, February 13, 2024: Precious metals record hike on MCX

Gold price today february 13, 2024: both gold and silver are trading on the higher side of the multi commodity exchange (mcx) on tuesday. check the latest city-wise prices here..

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MCX gold and silver gave negative closing yesterday; February Gold closed at 63257(-0.10%), and March Silver closed at 74095(-0.40%).

Both gold and silver prices recorded a hike on the Multi Commodity Exchange (MCX) on Tuesday, February 13, 2024.

Gold futures, maturing on April 5, 2024, stood at Rs 62,090 per 10 grams on the MCX, after recording a marginal hike of Rs 12 or 0.02 per cent. The previous close was recorded at Rs 62,078.

Meanwhile, silver futures, maturing on March 5, 2024, witnessed a hike of Rs 40 or 0.06 per cent and were retailing at Rs 71,049 per kg on the MCX against the previous close of Rs 70,009.

The gold and silver prices in India depend on several factors, including the value of the rupee against the dollar. Global demand also plays a key role in determining the trends observed in the rate of precious metals.

GOLD, SILVER PRICES ON INTERNATIONAL MARKET

Gold prices slipped on Monday ahead of U.S. inflation data and comments from Federal Reserve officials that could offer insight into the central bank's interest rate plans, news agency Reuters reported.

According to the latest metal report, spot gold was down 0.2 per cent at $2,020.97 per ounce, as of 1847 GMT.

US gold futures fell 0.3 per cent to $2,033.0 per ounce.

COMMENTS

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