Sone ki Chidiya (India) for many reasons has been in turmoil since the very first case of Covid-19 and the impact of the turmoil can be seen in various industries and people’s lives. As the world collapsed under an economic crisis, the jewelry industry also plunged. The gemstone and jewelry industry was one of the fastest growing markets for many decades, but suffered and fell sharply due to falling demand and exports. Wave after wave of Covid did not let him fully recover. The last festive season in India gave hope to the industry with a visible jump in sales and saw things get back on track.
So what awaits this industry that has survived all the hardships and turned out to be the phoenix rising from the ashes?
2021 has been a year of global paradigm shift and embracing the new normal. Constant digitalization in India has changed the whole process of doing business. New online businesses have accelerated all industries and the jewelry industry is no exception! Besides the digital market, it has had an impact on other areas, from the design process to its distribution. Advanced digital platforms have enabled the drafting of standard and high quality jewelry designs with high end detailing. The Indian jewelry industry has seen tremendous growth in online retail businesses. Many big industry players like Bluestone, Malabar Gold, Diamonds, Tanishq, Arnaaz, etc. introduced their online business model and adapted to the new normal.
The Indian e-commerce market will grow from $46.2 billion in 2020 to $111.40 billion by 2025. By 2030, it is expected to reach $350 billion.
Until February 2021, India’s gold and diamond trade accounted for around 7.5% of India’s Gross Domestic Product (GDP) and 14% of India’s total merchandise exports. The significant visible growth in exports is due to the escalating demand in the US export market and the fulfillment of orders received by various Indian exhibitors during Virtual Buyer-Seller Meetings (VBSM) held by the Gems and Jewelry Export Promotion Council of India (GJEPC).
India’s exports of gemstones and jewelry stood at $39.14 billion in 2021-22, with a visible increase of 54.13% over last year, and in April 2022, the total exports of gemstones and jewelry from India amounted to 3.23 billion dollars.
The Indian government is targeting a $70 billion export of jewelry and gemstones over the next five years (until 2025). To boost businesses, the government is also taking initiatives:
• A Free Trade Agreement (FTA) was signed with the United Arab Emirates to further boost exports and meet the $52 billion target.
• The government has also reduced customs duties on cut and polished diamonds and colored gemstones for the healthy growth of artisans.
• The SEZ law has also been revised with expectations to further stimulate exports.
• Gold monetization scheme, reduced gold import duties, hallmarking and other revamped which would help manufacturers to grow further.
• Compulsory hallmarking for artifacts and gold jewellery.
There is also a popular saying that Indians are the most fond of gold and with the data mentioned above, it is very visible and Indian women hold 11% of the world’s gold. In addition, the government program of asking for gold and giving interest in it has also attracted many people to invest in gold.
To conclude, we can say that the jewelry industry is no longer limited only to fashion, but has grown considerably as an investment option. So we Indians also like to give gold and jewelry, and these growing examples of festival gift exchanges and changing consumer preferences towards celebratory gifts for families and friends are also driving to the growth of the Indian gemstone and jewelry market for the next five years. Growing demand for high quality and branded gold and jewelry and assurance of real, authentic and pure form of luxury metals and gemstones in jewelry products are also contributing to the growth of the Indian jewelry industry. precious stones and jewelry.
For the coming years, the growth of the gemstone and jewelry sector would largely be driven by the growth and development of large retailers/brands/artisans. Established brands guide the market and provide new opportunities for growth and strengthening the market. The growing penetration of top players in the segments offers a variety of designs and products. In addition, the easing of restrictions on the import of gold by the Indian government should give a boost to the market. Improving material availability along with the reintroduction of low-cost gold metal loans and the likely stabilization of prices at lower levels is expected to drive growth and volume for long-term artisans and demand for gemstones and jewelry will be largely supported by recent positive developments within the industry.