The diamond and jewellery sector in India is one of the country’s oldest and most lucrative industries. Globally known for its craftsmanship and rich cultural history, India has established itself as a major player in the world of gemstones and precious metals. The sector plays a vital role in the Indian economy, contributing significantly to exports, employment, and the country’s GDP.
Key Factors Driving Growth:
One of the major factors driving the growth of this sector is the country’s rich tradition of jewellery-making. Indian consumers have a deep-rooted cultural affinity for gold and diamond jewellery. It is also considered an important part of major life events like weddings and festivals. This cultural demand continues to fuel growth, despite fluctuations in global markets.
India is also one of the largest markets for diamonds and gold, both as consumer goods and as investments. The country is the largest importer of gold and also serves as a hub for diamond cutting and polishing. Mumbai is a major global center for diamond processing. This robust infrastructure supports the growing demand both domestically and internationally.
Exports and Global Influence:
The diamond and jewellery sector is a significant contributor to India’s export revenues. Indian gems and jewellery, particularly diamonds, have a strong global presence, with markets in the United States, the Middle East, and Europe. India is the world’s largest exporter of cut and polished diamonds, accounting for around 60% of the global market share.
Example: Tanishq
A good example of India’s success in the jewellery sector is Tanishq, a leading jewellery brand in India. Tanishq is part of the Tata Group, one of India’s most trusted conglomerates. The brand has made a name for itself by combining traditional Indian designs with modern trends, ensuring quality, and focusing on customer satisfaction. Its focus on quality, trust, and wide-ranging designs made it a favorite among Indian consumers.
Tanishq also paved the way for ethical practices in the diamond industry by introducing the concept of “certified diamonds” and offering transparency in its sourcing and pricing. Tanishq has built a strong presence across India and is also expanding globally. Its innovative designs and commitment to ethical sourcing of materials have helped it gain a loyal customer base.
Challenges in the Sector:
Despite the growth, the diamond and jewellery sector in India faces several challenges. One of the main issues is the fluctuation in gold prices, which can affect demand. Additionally, the sector is also vulnerable to government policies such as changes in import duties and taxes. With changing consumer preferences, there is a rising demand for modern, lightweight jewellery and lab-grown diamonds, which has pushed traditional jewellers to innovate.
Conclusion:
The diamond and jewellery sector in India continues to thrive due to strong domestic demand, a well-established export market, and constant innovation. With global exports on the rise and a steady local market, India’s position as a global leader in the diamond and jewellery industry is secure. With the right strategies to tackle challenges and leverage opportunities, the sector is poised for continued success on the global stage.
– Ketaki Dandekar (Team Arthology)
Read more about the Diamond and Jewellery Sector here – https://www.ibef.org/industry/jewellery-india