The gems and jewellery industry in India occupies a significant position in the Indian economy. The market encompasses various kinds of jewels including gold, coloured gemstones, costume jewelleries, platinum and diamonds. The sector is expected to register a compound annual growth rate (CAGR) of 13 per cent during 2011- 2013, according to a RNCOS report titled, 'Indian Gems and Jewellery Market Forecast to 2013'.
Gold covers about 80 per cent of the Indian jewellery market and the rest of the part is covered by the fabricated studded jewellery consisting diamond and gemstone studded jewellery. Apart from that India has also emerged as the largest cutting and polishing industry for diamond in the world.
India has overtaken the US to become the third-largest men's luxury jewellery market in the world in 2011, according to research firm Euromonitor International. The country's men's jewellery market is estimated at approximately Rs 954 crore (US$ 193.9 million) in sales.
The 2010 RNCOS report was indirectly supported by the findings of a leading industry body and published in the same year. The journal estimated that by 2015 the gems and jewellery sector will help India earn about US$ 25 billion to US$ 35 billion in form of export revenue. A steady sale of jewelleries, especially of gold, has helped the gems and jewellery industry in India flourish at this rapid rate. In addition, India has evolved as a great place for diamond processing, according to the industry body.
The jewellery industry in India is estimated at Rs 150,000 crore (US$ 30.49 billion) industry of which only 5 per cent is organised, thus creating opportunity for the foreign players to enter the Indian market and increasingly making the Indian market organised.
The global demand for gold in 2011 rose to 4,067.1 tonnes worth an estimated US$ 205.5 billion - the first time that global demand has exceeded US$ 200 billion and the highest tonnage level since 1997, according to a report released by the World Gold Council (WGC). The main driver for this increase was the investment sector where annual demand was 1,640.7 tonne, up by 5 per cent as compared to the record set in 2010 and with a value of US$ 82.9 billion.
The importance of gold in the Indian gems and jewellery sector is significant,according to the report “Indian Gems and Jewellery Market Forecast to 2013,” by research firm RNCOS.
India appeared a leader in the table of most gold consuming nations with the consumption amounting to about 16,000 tonnes. The other key markets include Japan, China, Turkey, Italy, USA and UK. It is expected that the gems and jewellery industry would enjoy a growth of about 8.5 per cent in the period upto 2015. It is also estimated that about 600 tonnes of gold is used to make jewellery.