Deepa Jewellers

Regulatory formalisation and the expansion of organised retail chains are increasing the role of compliant corporate wholesalers. Retail chains require authenticated products, repeatable quality, reliable logistics and scalable ordering systems, making organised suppliers more important as the retail market consolidates.

The key details are:

• GST, mandatory hallmarking and HUID have accelerated the shift toward transparent, standardised industry practices

• Jewellery retail chains increased their national market share to approximately 37%-42% in FY26 and are projected to reach 45%-50% by FY30

• In South India, retail chains held approximately 54%-59% of the jewellery market in FY26 and are projected to reach 58%-63% by FY30

• Organised B2B wholesalers increasingly support retail chains with product authenticity, design consistency, inventory systems, large-scale procurement and demand forecasting

Gold jewellery demand is structurally tied to weddings, festive calendars and gold's role as a savings asset. These demand pools support recurring replenishment for manufacturers and wholesalers even though volumes remain sensitive to price spikes and affordability.

The key details are:

• Bridal wear accounts for approximately 50%-55% of jewellery demand by weight, with daily wear at 35%-40% and fashion wear at 5%-10%

• Gold jewellery represents approximately 80%-85% of the overall gems and jewellery retail market in FY26

• Purchases intensify around weddings and festivals such as Akshaya Tritiya, Diwali, Onam, Pongal and Ugadi

• Gold remains widely perceived as a hedge against inflation and economic uncertainty, sustaining investment-linked as well as consumption demand

Higher disposable incomes, urbanisation and greater fashion exposure are widening the addressable market for organised jewellery. Consumers increasingly demand certified, design-led and regionally relevant products, which supports suppliers capable of refreshing collections and customising products for retail partners.

The key details are:

• India's per-capita income increased to about INR 193,480 in FY25 from INR 159,557 in FY23, supporting discretionary purchasing power

• Urbanisation is projected to approach about 40% by 2030, increasing the salaried and brand-aware consumer base

• Consumers are becoming more brand conscious and design driven, with social and digital channels accelerating trend discovery

• B2B suppliers with design infrastructure, standardised catalogues, CAD/CAM capability and faster prototyping can shorten retailer refresh cycles

The industry is structurally attractive but highly exposed to commodity, liquidity and policy cycles. Gold-price spikes raise inventory values and may temporarily reduce volumes; the sector also depends on imported precious materials and timely working-capital finance. Competition from organised chains, regional manufacturers and online players requires constant investment in design and service, while evolving hallmarking, KYC, taxation and import rules create compliance and planning risk.

The key risks are:

• Record or rapidly rising prices can reduce affordability, increase carrying costs and create margin / production-planning risk

• High-value inventory and credit to trade customers create substantial financing requirements across the value chain

• Changes in customs duties, gold-import rules and RBI bullion policy directly affect procurement economics and liquidity

• Organised chains source from multiple manufacturers and require faster delivery, new designs, high quality and commercial flexibility

• Jewellery design and manufacturing continue to rely on specialised artisans and technical skills that take time to develop

Government policy has generally encouraged formalisation and quality assurance, but not every policy change is supportive of demand. The most important framework includes 100% FDI under the automatic route, GST-led tax formalisation, mandatory BIS hallmarking and HUID traceability, bullion-import regulation, gold monetisation and industry skilling. Import-duty policy remains a swing factor: CRISIL notes that the effective gold import duty was raised back to 15% in May 2026, which increases procurement cost and can affect consumer affordability.

The key policies are:

• A unified tax framework like GST has improved transparency and reduced the historical tax advantage of informal players

• Mandatory hallmarking across key purity categories and HUID-based traceability improve standardisation and buyer confidence

• 100% FDI is permitted in the gems and jewellery industry under the automatic route

• The Gem & Jewellery Skill Council of India supports workforce development across manufacturing, retail, gemstones and exports