Historically, India is known for its fascination for jewelry, which goes back many thousands of years ago. It is said that India was the biggest exporter and manufacturer of jewelry, especially of pearls which was held in high regard by overseas connoisseurs. In addition, for the last 2000 years, India has been home to diamonds, semi-precious stones and gold in abundance. Export trade flourished and over the years, India graduated to become the sole supplier of gemstones across the world.
Indians, both men and women, have been fascinated with jewelry for ages, as per historical narratives by researchers. Owning diamonds, colored stones and gold jewelry was a sign of success and power for the family and household in general. The same attitude stands even to this day, with Indian families investing in gold, diamonds, colored stone jewelry.
According to recent studies, the jewelry market in India is set to soar in the coming years. It is forecasted that the industry is set to increase to $21.54 billion between 2023 and 2027. With the market reaching an impressive compound annual growth rate of 5.54%, it is rearing to go across the global jewelry arena as a major jewelry supplier. India's rich culture and tradition boasts a jewelry market that has stood the test of time.
The gold segment is the frontrunner in India's jewelry market. Gold jewelry is 'Numero Uno' though India has been a supplier of a myriad of precious metals and gemstones. The love and demand for Gold jewelry have been constant for ages. The ever-increasing demand for gold jewelry is due to the rise in income combined with the cultural significance of gold in India. In India, gold jewelry still graces special occasions and holds its position as a preferred investment avenue in India. Therefore, gold is poised to witness a surge in demand, propelling the market's growth during the forecast period.
The market share growth by the gold segment will be significant during the forecast period. Gold has long held a prominent position in the Indian Market and still does. The demand for gold jewelry has increased year after year as a result of rising income levels and a cultural preference for metal. As per market studies, the gold segment was valued at $41.33 billion in 2017, and this continued until 2021.
However, the market for gold jewelry in India is closely connected to gold prices and the ups and downs in demand. The fluctuations in gold prices may result due to factors like inflation, monetary policies, and dynamics in the global jewelry trade. Though challenges cropped up often due to varied preferences of the younger generation towards alternative materials and designs, the allure of gold remains unwavering to date.
The Jewelry Market in India offers a diverse range of shopping avenues, with specialist retailers and the captivating online sub-segment serving as prominent options. Specialist retailers provide a personalized shopping experience, allowing customers to explore an array of traditional and contemporary jewelry designs. These brick-and-mortar stores are synonymous with trust and heritage, making them a preferred choice for many. On the other hand, the online sub-segment has witnessed remarkable growth, offering the convenience of shopping from the comfort of one's home. The online platform presents a treasure trove of options and a seamless shopping experience.
Today, the Gems and Jewellery industry has become one of the largest businesses in India, playing an important role in the Indian economy. Studying the statistical data, the industry contributes 7% of the country’s GDP and 15.71% of India’s total merchandise export. The jewelry industry brings in a huge amount of foreign exchange and also provides jobs to over 4.64 million workers in both organized and unorganized sectors. India's gems and jewelry industry is expected to reach $100 billion by 2027. The demand for jewelry is expected to be significantly supported by the recent positive developments in the industry.
As per reports, India has witnessed a massive growth of 54.13% in jewelry exports over the previous year and has reached $39.14 billion in 2021-22 financial year. Moreover, the Government of India is looking forward to taking it to a milestone of $100 billion in jewelry exports in the coming years. Though the Indian jewelry sector has so far been considered more traditional, by 2025 it should be more brand-oriented and more digital and sustainable than ever before. This will usher in a fundamentally new era of fine jewelry, with an annual growth rate of 8 to 12 percent.
Among the top Jewellery Brands in India are Tanishq, Malabar Gold and Diamonds, CaratLane, BlueStone, Kalyan Jewellers, Reliance Jewels, Bhima Jewellers, Joyalukkas... to name a few. While Titan's Tanishq brand is a market leader, known for its exquisite and high-quality jewelry, backed by the trust of the Tata Group, Reliance Jewels came into the industry with budget-friendly jewelry, while offering many amazing offers for future purchases. Therefore, it has become the best budget pick in the industry.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
