Gems and jewellery play a significant role in Indian customs and traditions, making this sector integral to the economy and one of the fastest growing industries in the country.

Worldwide, the gems and jewellery industry has been growing at a good pace and is currently estimated at over US$ 130 billion. In India, it accounts for nearly 20 per cent of total Indian exports. It provides employment to 1.3 million people directly and indirectly.

Advantage India

Apart form being the world’s largest diamond processing (cutting and polishing) country with an 80 per cent share in world market India’s favorable trade policies have made India the hub for gems and jewellery.

Leading Branded jewellery is the new mantra in the market, having rapidly acquired a niche over the past few years. Increasing purchasing power and disposable incomes of India’s middle class has resulted in consumption growth of this industry by about 11 per cent in the five-year period preceding 2006-07. Add to that the insatiable Indian craving for gems and jewellery, and the demand will skyrocket to US$ 20 billion by 2010 and US$ 30 billion in 2015, according to industry experts.

Indian Jewellery Retail

India’s gems and jewellery industry has been allowed 51 per cent foreign direct investments by the government in single brand retail stores attracting both global and domestic players to this sector. The burgeoning retail industry in India is instrumental in innovatively marketing and branding diamonds and traditional jewellery, making inroads in this sector and contributing to the nation’s economy. According to a report released by Technopak Advisors on Changing Retail Landscape in India, the jewellery and watches market is pegged at about US$ 13.52 billion. It is expected to register a 12 per cent growth by 2012, touching US$ 23.54 billion.

India’s economic boom in the country has translated into a large consumer market for jewellery and other luxury products, offering a lucrative opportunity for major brands to make their foray into the Indian market and establish their presence. Experts believe that by 2013, India will become the biggest consumer of jewellery.