Report Overview

The India gems and jewelry market is flourishing at a high rate owing to the association of precious metals with religion and culture in India along with rapid exposure to international media and the emergence of new manufacturing technologies for different designs...

India Gems and Jewelry Market- Industry Trends & Forecast Report 2028

The India gems and jewelry market is anticipated to grow at the CAGR of 8.40% in the forecast period. The growth of the market is attributed to the association of precious metals with religion and culture in India and the tradition of wearing jewelry of gold and silver on different occasions. Furthermore, rapid exposure to international media and the emergence of new manufacturing technologies for different designs is also presenting lucrative growth opportunities for the market.

Gems and Jewelry - Overview

A gemstone (also known as a fine gem, jewel, precious stone, or semiprecious stone) is a cut and polished piece of mineral crystal that is used to manufacture jewelry or other adornments. Brooches, rings, necklaces, earrings, pendants, bracelets, and cufflinks are examples of jewelry or jewelry worn for personal ornamentation. Jewelry can be worn on the body or on clothing. Jewelry has traditionally been made of metals such as gold, which is frequently paired with gemstones, although other materials such as shells and other plant materials may also be used.

India Gems and Jewelry Market Forecast and Trends

Growth Drivers

Cultural And Religious Significance Of Gems And Jewelry

One of the key elements fueling demand for fine jewelry is the conventions around precious metals. India, for example, uses a lot of gold and silver due to its diverse religious and cultural ties. Several gems are also associated with astrology and have strong beliefs that they affect human lives. Gemstones, which have a specific significance in Vedic astrology, are valuable stones extracted from natural soil that has been utilized for centuries to alleviate issues brought on by planets.

Favorable Government Initiatives And Policies

According to the Indian Trade Portal, the India gems and jewelry market is among the largest in the world and contributes around 29% to global jewelry consumption. With the expanding nature of the industry, the government of the country also takes various initiatives to boost market growth. For instance, The government has allowed 100 percent FDI in the industry under the automatic method, which means that the foreign investor or Indian business does not need to seek prior clearance from the Reserve Bank or the government.

Restraints

High Volatility Of Gems And Jewelry Prices

The price of gems and jewelry prices are extremely volatile and frequently fluctuate, which acts as a major restraining factor for the India gems and jewelry market. Metals like silver and gold often register price fluctuations because of various factors such as demand and supply. When demand for gold grows, so does the price of gold, and vice versa. When the market experiences inflation, the value of currency decreases and individuals are more likely to keep money in the form of gold.

Impact of COVID-19 on India Gems and Jewelry Market

Following the COVID-19-induced pandemic, the Indian gems, and jewelry market was entirely shut down. Because jewelry is largely composed of precious metals that originate from mining, such as gold, diamonds, platinum, and so on, the whole market was put on hold as all mining activities were temporarily halted, after the worldwide lockdown imposed by governments to stop the virus' spread. Furthermore, customers' interests quickly switched from purchasing luxury products to purchasing consumer goods, resulting in a decrease in demand for gems and jewelry. Furthermore, the current demand could not be supplied since all distribution networks were shut down, preventing items from being imported or exported.

India Gems and Jewelry Market - By Product Type

Based on product type, the India gems, and jewelry market is segmented into gold, diamond, silver, gemstones, and others (pearl, platinum, etc.). The gold segment is predicted to hold the highest share of the entire market. In addition, the diamond jewelry market is predicted to grow at the highest rate during the forecast period. In developing nations like India, jewelry, particularly gold jewelry, is used as a kind of investment. It is also used to represent diverse civilizations and functions as a religious object.

India Gems and Jewelry Market - By Distribution Channel

Based on the distribution channel, the India gems and jewelry market is segmented offline and online. The offline store segment accounts for the largest market share. The mono-brand stores enjoy the high demand for the sale of gems and jewelry. This is due to people's proclivity for double-checking the precious metals and gems they purchase. The online store category, on the other hand, is growing at a rapid rate and is likely to dominate the market over the projection period, thanks to the rise of e-commerce platforms and the preservation of high consumer satisfaction.

India Gems and Jewelry Market - Regional Insights

Geographically, the India gems and jewelry market is segmented into North India, South India, East India, and West India. South India dominates the India gems and jewelry market owing to the strong demand for precious jewelry from states like Kerala, Tamil Nadu, Andhra Pradesh, and others. According to an NSSO report, Kerala has the highest monthly per capita spending (MPCE) on gold jewelry in all Indian states. In the rural sector, the state's gold MPCE is Rs. 208.55, more than six times the second-placed Goa's Rs. 34.07.

Competitive Landscape

The leading market players in the India gems and jewelry market are Rajesh Exports Limited, Malabar Gold Private Limited, Titan Company Limited, Bhima Jewelry and Diamonds Private Limited, Kalyan Jewelers India Limited, PC Jeweler Limited, Tribhovandas Bhimji Zaveri Limited, Joyalukkas India Limited, Hari Krishna Exports Private Limited, Vaibhav Global Limited, and other prominent players.

The India gems and jewelry market is highly competitive with the presence of multiple brands as well as local craftspeople who offer exclusive designs and superlative product quality. The companies significantly focus on their distribution channels and are increasingly investing in both online and offline stores. They are also adopting market strategies such as partnerships, mergers, acquisitions, collaboration, etc., to stay ahead of the competition.

Scope of the Report

By Product Type

• Gold
• Diamond
• Silver
• Gemstones
• Others

1. Pearl
2. Platinum
3. Others

By Distribution Channel

• Offline
• Online

By Region

• North India
• South India
• East India
• West India