India’s Gem and Jewelry Sector Anticipated to Hit $128 Billion by 2029

Key Takeaways

India's gems and jewellery market is projected to reach $128 billion by 2029.
Lab-grown diamonds are fueling growth in the sector.
Online sales are expected to make up 10 percent of total jewellery sales.
India contributes 15 percent to global LGD production.
Government initiatives are supporting market expansion.

New Delhi, April 21 (NationPress) The gems and jewellery industry in India is poised to escalate from $83 billion in 2024 to $128 billion by 2029, reflecting a compound annual growth rate (CAGR) of 9.5 percent, according to a report released on Monday.

Gold remains the leading segment, holding an 86 percent market share, while lab-grown diamonds (LGDs) are emerging as a significant factor for growth, the report by 1Lattice indicated.

The current valuation of the LGD market is $345 million (2024), and it is projected to expand at a CAGR of 15 percent to reach $1.2 billion by 2033.

India accounts for 15 percent of global LGD production, with exports increasing 8-fold over the past four years, amounting to $1.3 billion in FY24.

“The gems and jewellery market in India is rapidly transforming at the crossroads of tradition and modernity. The growth of lab-grown diamonds, facilitated by digital commerce, affordability, and a growing awareness of sustainability, is revolutionizing the future landscape of jewellery retail,” stated Ashish Dhir, Senior Director–Consumer and Retail, 1Lattice.

Key factors driving this market growth include an increase in disposable income among the middle class in India, leading to a heightened demand for luxury and investment-grade jewellery, as well as the growing popularity of branded and certified jewellery, which is enhancing organized retail and consumer confidence. Furthermore, digital transformation driven by e-commerce, virtual try-ons, and AI-powered personalization is expected to lead to online sales making up 10 percent of total jewellery sales.

Additional growth drivers encompass government initiatives, such as a 5 percent duty cut on LGD seeds and a $30 million research grant aimed at enhancing domestic LGD manufacturing capabilities. Sustainability and customization are emerging as key consumer preferences, particularly among Gen Z and Millennials, reshaping product choices and brand loyalty, as noted in the report.

The report also emphasized the industrial applicability of LGDs in sectors like semiconductors, aerospace, and optics. However, the lack of domestic HPHT (High-Pressure, High-Temperature) machine fabrication in India presents a notable opportunity for investors and technology firms.