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Gems and Jewellery Industry in India

November, 2012


The gems and jewellery industry has an important role in the Indian economy. India is the largest market for gold jewellery in the world. Gold dominates the Indian jewellery market and formulates almost 80 per cent of the market share, which is followed by fabricated studded jewellery including diamond and gemstone studded jewellery. Further, India has emerged as the largest cutting and polishing industry for diamonds in the world.

In fact, the two major segments of the gems and jewellery business in India are gold and diamond jewellery, as per an Exim Bank report.

Moreover, Southern India is poised to be the biggest and the fastest growing jewellery market in the whole country. While Tamil Nadu and Kerala are known for plain gold jewellery, Andhra Pradesh and Karnataka have emerged as good markets for studded jewellery.

Industry Structure

Indian gems and jewellery sector is expected to grow at a compound annual growth rate (CAGR) of around 13 per cent during 2011-2013, as per a RNCOS report titled 'Indian Gems and Jewellery Market Forecast to 2013'. At present, Indian gems and jewellery market is highly fragmented, and is rapidly transforming into an organised sector due to the growing acceptance of branded jewellery market.


Gold with its intrinsic luster and ease of fabrication has always been the jewellers' favourite metal and forms the backbone of the precious jewellery industry. India's culture and mythology embrace gold. India's traditions of unparalleled craftsmanship and skill are exemplified by its gold jewellery manufacturing, with the majority of pieces still made meticulously by hand. India is one of the largest consumers of gold in the world.

  • Tribhovandas Bhimji Zaveri Ltd (TBZ) has marked its foray into Kolkata and East India by inaugurating two showrooms. In addition, TBZ further made its presence in Vapi, the biggest city in Valsad district of Gujarat, surrounded by Daman, Dadra and Nagar Haveli, by inaugurating its exclusive brand outlet
  • P Mangatram Jewellers showcased the world's lightest necklace, designed in 18k gold and embellished with precious stones, weighing just 3.5 grams at The India International Jewellery Show (IIJS) 2012


Diamonds have always enjoyed a special place among precious gemstones. India has the distinction of being one of the first countries to introduce diamonds to the world. Earlier, diamond jewellery was limited to a very small elite segment of the population but now it has found way in various segments of consumers. Besides, India has emerged as one of the world's leading diamond cutting and polishing centres.

  • The Gems and Jewellery Export Promotion Council (GJEPC) in collaboration with Moscow Diamond Bourse (MDB) organised the second edition of Indo-Russia Jewellery Summit in Mumbai. The Summit has been able to present tremendous opportunity for many visitors who came looking at India as a sourcing hub for the first time
  • GJEPC strives to focus on penetrating new emerging markets in the world, with special attention on India and China, to promote diamonds and boost consumer confidence, said Mr Vipul Shah, Chairman, GJEPC
  • Gujarat is one of the major states in India promoting gems and jewellery sector as one of the thrust areas for development. Gujarat, having the largest human resource pool in the country in diamond cutting and polishing, accounts for 80 per cent of the total diamonds processed in India

Colored Gemstones

The colored gemstones segment includes remaining forms of jewellery which includes precious gemstones like emeralds, sapphires, rubies and tanzanite; and semi-precious gemstones like silver, pearls, etc. Traditional Indian gemologists identified around 84 precious and semi-precious stones, amongst them nine stones form the 'Navratnas or the nine gems'.

  • Renaissance Jewellery, manufacturers and exporters of studded precious metal jewellery, were felicitated by GJEPC, at its 39th annual awards presentation at New Delhi. Renaissance won the award for outstanding export performance under the category 'Studded Precious Metal Jewellery Exports'