Indian gem and jewellery dazzle even in trying times

In 2022-23, the USA remained the top importer, although imports declined slightly compared to the previous year, marking a shift in trade patterns. Yet, Hong Kong and the UAE maintained their positions with significant exports

The Indian gem and jewellery (IGJ) market size was valued at $ 43.71 billion in 2023 and its revenue is expected to grow at a CAGR of 17.35 % from 2024 to 2030, reaching nearly $ 133.96 billion.

This industry contributes seven per cent to the Gross Domestic Product (GDP) apart from employing more than five million skilled and semi-skilled workforce.

The sector contributes about 10-12% of the country’s total merchandise exports, accounting for the third largest commodity share.

The IGJ industry is one of the fastest growing segments with an annual growth rate of approximately 16 per cent. The domestic market is estimated to be around $ 16.1 billion and CII expects it to grow to $ 30 billion in the next four years.

The country is also the largest consumer of gold in the world. It consumes in excess of 800 tonnes of gold that accounts for 21 per cent of world gold consumption, of which nearly 620 tonnes go into making jewellery.

India is also emerging as the world's largest trading centre for gold. The industry has the best skilled manpower for designing and producing high volumes of exquisite jewellery at low labour costs. It is also the largest diamond cutting and polishing centre in the world; the industry enjoys 60 per cent value share, 82 per cent carat share and 95 per cent share of the world market in terms of number of pieces. In other words, nearly 9 out of 10 diamonds sold worldwide are cut and polished in India.

The country is the seventh largest exporter, contributing 3.5% to exports. Leading in diamonds, silver jewellery, lab-grown diamonds and synthetic stones, the FY23 exports reached $ 20.58 billion, predominantly driven by cut and polished diamonds amounting to $ 12.22 billion. Ambitious targets set by the government aim to propel exports to $ 45.7 billion in 2022-23, indicating a proactive approach to stimulating growth. The IGJ market export destinations predominantly include the USA, Hong Kong, UAE, Belgium, Israel, Thailand, Singapore, the UK, Netherlands, and Japan. With the USA emerging as the largest importer, markets like Israel, Thailand, the UK and the Netherlands have experienced significant growth, most of them attributed to post-pandemic economic recovery and increased consumer spending.

In 2022-23, the USA remained the top importer, although imports declined slightly compared to the previous year, marking a shift in trade patterns. Yet, Hong Kong and the UAE maintained their positions with significant exports.

During 2022-23, certain key destinations like Belgium, Singapore, Switzerland and the Netherlands witnessed a remarkable surge in imports from India, surpassing the pre-pandemic levels.

Necklaces hold a prominent position in the Indian jewellery market, driven by their adornment value and cultural heritage. The opulence and intricate designs of necklaces make them a sought-after accessory for special occasions, festivals, and weddings, enhancing their dominance. Their application spans across diverse demographics and occasions, serving as statement pieces and traditional ornaments alike. The adoption rate remains steady, upheld by the blend of traditional craftsmanship and contemporary designs that resonate with both domestic and international consumers. The segment is poised to sustain its dominance due to its timeless appeal and the fusion of classic and modern aesthetics, catering to a wide consumer base.

Earrings maintain a strong foothold in the Indian market, appreciated for their versatility and ability to complement various outfits. While not as dominant as rings and necklaces, earrings have a growing influence due to evolving fashion trends and increased adoption by younger consumers. Their applications range from every day wear to formal occasions, reflecting their versatility and broad appeal. Earrings are expected to witness significant growth in adoption, driven by innovative designs and changing consumer preferences for lightweight, trendy, and statement pieces. This segment is likely to experience an upsurge in dominance, aligning with evolving fashion tastes and the emphasis on individualistic styles.

While rings continue to dominate due to their cultural significance, necklaces hold their ground with timeless appeal, and earrings show potential for increased dominance through innovative designs and evolving consumer preferences.

In parting, it is worthwhile to remember the adage, “A gem cannot be polished without friction, nor a man perfected without trials.”