Jewelry market in India- statistics & facts
Ornamentation was an integral feature in the ancient sculptures and paintings that adorned Indian palaces and public dwellings, as well as temples. With each new period of Indian history, the art of jewelry–making evolved and represented the culture and craftsmanship of the era. Ancient India was a global trade hub for jewelry, precious stones, and metals and continues to be to this day.
India, as a world-renowned producer of gemstones – with the legendary Kohinoor diamond being exemplary of this legacy, also presently houses the largest diamond processing center. It comes as no surprise therefore that the South Asian country is a key player in the global jewelry market.
The Hindu festival of lights, Diwali or Deepavali, along with Dusshera, causes a regular spike in sales of jewelry every year between early October and late November. This results in a stable consumption of gold jewelry. With rising disposable incomes and an increase in overall expenditure, gold consumption is highest among the middle-income group in the country.
On the other hand, silver is termed the poor man’s gold. Even though most of the demand share for the metal came from the manufacture of jewelry and silverware, it also serves industrial and investment purposes. Silverware is often used for gifting and its market demand has increased consistently.
While these organized players continue to expand and diversify, it is worth remembering that the overall retail sector is dominated largely by unorganized players. The expansion of branded jewelry and the rise in e-commerce, however, will play a significant role in the growth of the industry in the years to come.
As a result, the jewelry market is poised for growth and is likely to reach 147 billion U.S. dollars by 2027, driven by the rise in the middle class, urbanization, and increase in digital adoption.
India, as a world-renowned producer of gemstones – with the legendary Kohinoor diamond being exemplary of this legacy, also presently houses the largest diamond processing center. It comes as no surprise therefore that the South Asian country is a key player in the global jewelry market.
How important is gold in India?
Gold plays an important role in India’s socio-economic structure and has cultural value, apart from being an important financial investment. It is a sign of wealth and prestige and is considered an essential component in several religious rituals and is especially auspicious in Hindu and Jain cultures. Gifting gold is a deeply embedded aspect of wedding customs. Despite high costs, the volume of consumer demand for gold jewelry remains consistent, thanks to weddings and special occasions. About 50 percent of the country’s yearly gold demand is generated by weddings.The Hindu festival of lights, Diwali or Deepavali, along with Dusshera, causes a regular spike in sales of jewelry every year between early October and late November. This results in a stable consumption of gold jewelry. With rising disposable incomes and an increase in overall expenditure, gold consumption is highest among the middle-income group in the country.
On the other hand, silver is termed the poor man’s gold. Even though most of the demand share for the metal came from the manufacture of jewelry and silverware, it also serves industrial and investment purposes. Silverware is often used for gifting and its market demand has increased consistently.
Sparkling traditions: India's jewelry retailers
India has a thriving and diversified jewelry retail sector, with many companies catering to different tastes and budgets. Traditional jewelry remains dominant, along with modern designs and unisex jewelry pieces. Tanishq, a beloved brand under Titan Company, offers an extensive range of gold and diamond jewelry. Meanwhile, Kalyan Jewellers stands out with its diverse collection from different parts of the country.While these organized players continue to expand and diversify, it is worth remembering that the overall retail sector is dominated largely by unorganized players. The expansion of branded jewelry and the rise in e-commerce, however, will play a significant role in the growth of the industry in the years to come.
As a result, the jewelry market is poised for growth and is likely to reach 147 billion U.S. dollars by 2027, driven by the rise in the middle class, urbanization, and increase in digital adoption.
