Year-End Review: India's Gems and Jewellery Sector Aims for $100 Billion in Sales by 2025
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Mumbai, Dec 31 (NationPress) India's gems and jewellery sector is feeling optimistic as it approaches the year ahead, having maneuvered through market dynamics in 2024 to emerge stronger by year-end, the All India Gem and Jewellery Domestic Council (GJC) announced on Tuesday.
GJC Chairman Saiyan Mehra stated: "India’s gems and jewellery market is projected to reach $100 billion by 2025, fueled by a mix of domestic demand, export opportunities, and strategic initiatives."
The industry is anticipated to be a major contributor to India’s economic growth in 2025, significantly impacting the nation’s GDP and generating millions of new jobs, he added.
India remains one of the largest global centers for jewellery production, export, and consumption. The sector is expected to achieve a compound annual growth rate (CAGR) of 5-6 percent during this period, supported by robust consumer demand both locally and internationally, Mehra stated.
He further explained that India's gems & jewellery sector is well-prepared for growth, thanks to promising domestic demand, strong export potential, and ongoing transformations linked to digitalization and sustainability initiatives.
"While we anticipate an increase in the prices of precious metals in 2025, it is unlikely to dampen the overall demand for gold and silver. We are optimistic that conditions will improve compared to 2024, driven by India's middle class and young population, which constitutes a substantial part of the consumer base, continuing to fuel demand for gold and diamond jewellery. The wedding jewellery segment will also remain a significant growth catalyst in India," the GJC chief expressed.
GJC Vice Chairman Rajesh Rokde noted that 2024 was an "excellent year" for the jewellery sector, with a noticeable shift towards affordable and sustainable choices among consumers.
"We recorded a marked increase in the demand for silver jewellery, especially among younger buyers," he remarked.
Regarding market trends, gold prices fluctuated, yet customer interest stayed strong. Silver prices surged due to industrial demand and investor interest. Although the diamond market encountered some obstacles, interest in lab-grown diamonds and sustainable options has been on the rise, he noted.
"Looking forward to 2025, I foresee sustained consumer demand, propelled by heightened awareness surrounding sustainability and responsible sourcing practices. I predict a 12-15 percent growth in gold sales and a 15-18 percent growth in silver sales. By 2025, India is expected to host over 4 million weddings, positively impacting jewellery consumption across the country," Rokde added.
He highlighted that gold in India is perceived not only as a fashion statement but also as an investment; this dual perspective has attracted greater interest from the younger demographic towards the precious metal.
Meanwhile, the exports of gems and jewellery recorded a decline of 12.94 percent, amounting to $1,986.21 million (Rs 16,763.13 crore) in November, attributed to ongoing geopolitical tensions, according to data compiled by the Gem and Jewellery Export Promotion Council (GJEPC).
Exports for November 2023 stood at $2,281.4 million, as per GJEPC figures.
There was a decrease in the export of cut and polished diamonds as well as lab-grown diamonds during the month.
Conversely, plain gold jewellery exports surged by 72.12 percent to $652.81 million in November compared to $379.27 million during the same timeframe last year.
Prolonged geopolitical tensions continue to pose a challenge for the Indian gems and jewellery industry, leading to a slowdown in exports after a previous uptick, as stated by GJEPC.
"Thus, any significant developments on the geopolitical landscape may further disrupt trade activities in the future. However, with the holiday season approaching, we anticipate sustained demand driven by increased purchasing sentiment," remarked former GJEPC Chairman Colin Shah.
