In just six years, the retail jewelry sector in India has grown by $30 billion.
The study emphasized a number of factors that contributed to the industry's explosive expansion, including increased disposable income, a better mix for jewelry worn on a regular basis, and improved product offers.
New Delhi: According to a survey by Motilal Oswal Financial Services, the retail jewellery business in India grew from $50 billion in 2018 to $80 billion (Rs 666,480 crore) in the financial year 2024.
The report outlined various factors that contributed to the industry's explosive expansion, such as increased disposable income, a better variety of jewelry for everyday wear, improved product offerings (diamonds, design, etc.), government-mandated hallmarking to foster trust, and an improved shopping experience at well-organized stores.
Only 36 to 38 percent of the retail segment's total share was held by organized retail jewelers; over 500,000 local goldsmiths and jewelers made up the majority of the unorganized/local participants in the retail jewelry business.
According to the report, 34% of India's total gold consumption is in the form of bars and coins, while 66% of it is used for jewelry. Imports account for the majority of India's gold supply, and the country's gold market saw significant changes in imports between FY18 and FY20.
According to the data, the nation imported 980 tonnes of gold in FY19 but just 720 tonnes in FY20. A number of variables contributed to this instability, such as drops in the price of gold on a worldwide scale, strong economic growth that increased people's disposable money, and high demand for gold because of customary weddings and festivities.
However, rising import taxes and the beginnings of an economic slump resulted in a large decline in gold imports in FY20.
Tamil Nadu, Maharashtra, Karnataka, West Bengal, and Uttar Pradesh were listed as the top five states in India with organized retail jewelry outlets.
In India, the main occasions for buying jewelry are weddings and festivals. At fifty-five percent, bridal jewelry continues to be a major contributor to overall demand.
Thirty to 35 percent of the Indian jewelry market is made up of pieces meant for everyday use. The jewelry business is currently strategically concentrating on producing lightweight items in order to meet the needs of younger customers, particularly those who want gold jewelry for everyday wear that goes well with western-style clothing.
On the other hand, fashion jewelry makes up about 10% of the Indian jewelry market.
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