Indian Gems and Jewellery Industry
Gems and Jewellery (G&J) has been culturally imbibed within the Indian civilisation since millennia for both its aesthetic as well as value-based qualities. Precious metals and stones have been an integral part of the Indian civilisation since its recorded history. India has the distinction of being the first country to introduce diamonds to the world. The country was also the first to mine, cut & polish and trade in diamonds. However, the prominence of the G&J industry in the Indian economic scenario is a development of the last three to four decades.
The domestic market of gems and jewellery is estimated to be in the US$ 18-20 billion range. Given the fragmented nature of the industry it is difficult to put a finger on the exact size. The industry is expected to grow at around 13% annually and at this rate it could reach US$ 35-40 billion by 2015.
Gold jewellery accounted for around 75% of total Indian gold demand in 2009, the remainder being investment (23%) and decorative and industrial (2%). Indian consumers also regard gold jewellery as an investment and are well aware of gold’s benefit as a store of value. Wedding-related demand accounts for a substantial proportion of overall jewellery demand. This is particularly true in the south of India, where the most popular wedding jewellery sets tend to be the more traditional, intricate but bulky styles in heavier weights. In the northern cities more „western‟ styles, lighter wedding sets, as well as diamond-set pieces, are becoming increasingly popular. (Source: World Gold Council)