Jewelry market in India- statistics & facts
Ornamentation was an integral feature in ancient Indian sculptures and paintings that adorned 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, 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 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 India.
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 through the years.
The expansion of branded jewelry, however, will play a significant role in the growth of the industry in the years to come. The tradition to convey a rich cultural history through modern designs and techniques can be a powerful tool in bringing value to customers.
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 sign of wealth and prestige and considered an essential component in several religious rituals, especially auspicious in Hindu and Jain cultures. Giving gold as a gift 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 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 India.
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 through the years.
Sparkling Traditions: India's Jewelry Retailers
Jewelry retail thrives in India with several small- and large-scale companies in a largely fragmented market. The leading players in the jewelry and diamond sector include Titan company, Rajesh Exports, and Kalyan Jewellers. While these organized players continue to expand and diversify, it is worth keeping in mind that the retail sector overall is dominated largely by the unorganized sectors.The expansion of branded jewelry, however, will play a significant role in the growth of the industry in the years to come. The tradition to convey a rich cultural history through modern designs and techniques can be a powerful tool in bringing value to customers.
