India’s Gems & Jewellery Market: A $128 Billion Opportunity by 2029

Introduction:

India’s gems and jewellery market is poised for a dazzling future, with projections indicating it could reach a staggering $128 billion by 2029. This growth, driven by a compound annual growth rate (CAGR) of 9.5% from its 2024 valuation of $83 billion, highlights the sector’s critical role in India’s economy. Blending centuries-old traditions with cutting-edge innovation, the industry is evolving rapidly, fueled by the rise of lab-grown diamonds and digital commerce. In this article, we’ll explore the dynamics propelling this growth, key trends shaping the market, challenges to navigate, and the glittering opportunities awaiting stakeholders.

Market Overview:

The India’s Gems & Jewellery Market is currently valued at $83 billion, with gold commanding an impressive 86% share. However, the market is diversifying, with lab-grown diamonds (LGDs) emerging as a significant growth driver. Valued at $345 million in 2024, the LGD segment is expected to grow at a 15% CAGR, reaching $1.2 billion by 2033. India contributes 15% to global LGD production, with exports soaring eightfold over the past four years to $1.3 billion in FY24, according to a 1Lattice report.

The market’s projected growth to $128 billion by 2029 reflects its robust potential. Gold demand, which stood at 774.1 tonnes in 2023, is expected to remain strong at 700-800 tonnes in 2025, per the World Gold Council. This growth is supported by India’s position as the second-largest gold jewellery consumer globally and a top exporter of diamonds, holding a 33% share in 2021.

Growth Drivers:

Several factors are driving the expansion of India’s Gems & Jewellery Market:

1. Cultural Significance: Jewellery is deeply embedded in Indian traditions, especially during weddings and festivals, which account for a significant portion of annual sales.
2. Rising Disposable Incomes: Economic growth has increased purchasing power, boosting demand for luxury items like jewellery.
3. Evolving Consumer Preferences: Millennials are driving demand for branded, lightweight, and customized designs, shifting away from traditional heavy pieces.
4. Wedding and Festive Demand: These seasons see a surge in purchases, significantly contributing to market growth.
5. E-commerce Growth: Online sales are projected to account for 10% of total jewellery sales, making the market more accessible, as noted in the 1Lattice report.
6. Government Initiatives: Policies like 100% FDI under the automatic route, the CEPA with UAE, reduced import duties on gold and diamonds, and gold monetization schemes are fostering growth. The government also provides up to 90% assistance for setting up production centers, per IBEF.
7. Role of GJEPC: The Gem & Jewellery Export Promotion Council (GJEPC) connects over 7,500 members, promotes ethical practices, and organizes trade shows to boost exports, which reached $37.97 billion in FY23.

Key Trends:

The India’s Gems & Jewellery Market is undergoing transformative changes:

1. Branded Jewellery Surge: Consumers increasingly prefer trusted brands like Tanishq for quality and design assurance.
2. Western Influences: Global trends are blending with traditional Indian designs, appealing to a cosmopolitan audience.
3. Technology Adoption: Innovations like 3D printing and social media marketing are revolutionizing design and sales, as highlighted by Maximize Market Research.
4. Sustainable Practices: Demand for transparency, certification, and ethically sourced materials is rising, with brands adopting eco-conscious approaches.
5. Lab-Grown Diamonds: The GJEPC’s Lab-grown Diamond Buyer & Seller Meet in Surat (April 2023) underscores the focus on sustainable LGDs, which are reshaping the market due to their affordability and ethical appeal.

“India’s gems and jewellery market is evolving rapidly at the intersection of heritage and innovation. The rise of lab-grown diamonds, powered by digital commerce, affordability, and sustainability consciousness, is reshaping the future of jewellery retail,” says Ashish Dhir, Senior Director-Consumer and Retail, 1Lattice.

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Challenges:

Despite its promise, the India’s Gems & Jewellery Market faces hurdles:

1. Gold Price Volatility: Fluctuations in gold prices can dampen consumer demand and affect profitability.
2. Global Competition: India competes with markets like China and the Middle East, requiring continuous innovation.
3. Skilled Labor Shortage: The industry needs skilled artisans, and gaps in training could hinder growth.
4. Regulatory Compliance: Navigating domestic and international regulations, such as the Kimberley Process, poses challenges.

Opportunities:

The India’s Gems & Jewellery Market offers numerous opportunities:

1. E-commerce Expansion: Online platforms provide new avenues to reach customers beyond traditional stores.
2. Lab-Grown Diamonds: With growing acceptance, LGDs are a lucrative segment for investment and innovation.
3. Global Market Growth: Trade agreements like CEPA with UAE and India’s craftsmanship reputation enable export expansion.
4. Design and Technology Innovation: Leveraging technology and modern designs can meet evolving consumer demands.

https://gjepc.org/solitaire/indias-gems-jewellery-market-set-to-hit-128-billion-by-2029-1lattice-report/

Conclusion:

The India’s Gems & Jewellery Market is on track to reach $128 billion by 2029, driven by a potent mix of cultural heritage, economic growth, and technological innovation. While challenges like gold price volatility and global competition exist, the opportunities in e-commerce, lab-grown diamonds, and international markets are immense. Stakeholders, from artisans to investors, have a unique chance to shape this vibrant industry. By embracing sustainability, digital platforms, and global outreach, the sector can exceed its ambitious targets and solidify India’s position as a global leader in gems and jewellery. Stay engaged with this dynamic market—whether you’re a consumer, investor, or creator, the future is sparkling bright.