Priority Jewels

The Indian jewellery value chain is gradually moving from fragmented family-run operators toward organised manufacturers and retailers as consumers demand purity assurance, transparent pricing, consistent designs and reliable after-sales service. GST, mandatory hallmarking and expansion of national jewellery chains reinforce this shift. Formalisation also improves access to institutional finance, professional supply chains and technology-led inventory management.

The key drivers are:

• Organised retail accounted for roughly 26% of India’s broader retail market in FY25 versus about 18% in FY21, signalling a wider formalisation trend

• The organised share of the diamond-studded gold wholesale market was approximately 42.7% in CY25 and is projected to reach about 45.5% by CY30

• Organised diamond-studded gold wholesale value is projected to rise from about INR 17,184.0 Cr in CY25 to INR 39,997.0 Cr by CY30

• Mandatory hallmarking and HUID-based traceability improve consumer confidence and favour compliant, process-oriented jewellery businesses

Higher disposable incomes and a growing urban middle class are expanding jewellery consumption beyond wedding-led purchases into daily-wear, gifting and self-purchase. Light-weight pieces lower the absolute ticket size while preserving the aspirational appeal of precious jewellery. Diamond-studded gold additionally benefits from rising brand awareness, fashion-led purchasing and a preference for contemporary designs among millennials and young professionals.

The key details are:

• The Indian diamond-studded gold wholesale market reached about INR 40,278.0 Cr in CY25 after a 16.7% CAGR over CY20-CY25

• The market is projected to reach about INR 87,906.0 Cr by CY30, implying approximately 16.9% CAGR from CY25

• India is the world’s second-largest consumer of diamond jewellery, accounting for about 11% of global consumption

• The daily-wear jewellery market is projected to expand from approximately INR 119,166.0 Cr in CY25 to INR 235,704.0 Cr by CY30

Jewellery demand is broadening geographically as organised chains expand beyond metros into Tier-II and Tier-III cities. Digital catalogues, social-media discovery, e-commerce and omnichannel engagement are changing how consumers shortlist designs and compare pricing before visiting a store. For manufacturers, a wider organised retail footprint increases demand for frequent design refreshes, smaller replenishment lots and reliable pan-India supply.

The key details are:

• Organised jewellery retailers continue to expand store networks in Tier-II and Tier-III cities, bringing branded products closer to new consumer cohorts

• Digital and omnichannel platforms are expected to play a growing role as consumers seek convenience, transparency and broader design choice

• India’s urban population continues to rise, supporting jewellery consumption linked to salaried households and modern retail formats

• Light-weight and contemporary designs improve affordability and are well suited to repeat-purchase categories such as rings, earrings, pendants and bracelets

Jewellery demand is resilient over long periods but can be volatile because purchase decisions are sensitive to precious-metal prices, discretionary income and consumer confidence. Manufacturers and retailers also carry significant inventory and funding requirements, creating exposure to price movements and financing costs. The shift toward lab-grown diamonds, global trade uncertainty and intense competition from both organised and unorganised players add further pressure on product positioning and margins.

The key risks are:

• Gold and diamond price volatility: Sharp increases raise ticket sizes, can delay purchases and increase the amount of working capital tied up in inventory

• Demand cyclicality and seasonality: Weddings and festivals remain important consumption periods, while weak rural income or high inflation can soften discretionary demand

• Changing preferences: Growing acceptance of lab-grown diamonds, minimalist designs and other alternatives can disrupt traditional product categories and pricing

• Fragmented competition and supply chains: Unorganised manufacturers, global brands and rapidly changing design trends can intensify pricing pressure and require continued investment in innovation

Government support for the gems-and-jewellery industry is primarily directed at formalisation, consumer protection, export competitiveness and easier sourcing rather than company-specific subsidies. Hallmarking and traceability initiatives raise product standards, while customs-duty changes and trade agreements can improve the economics of diamond and jewellery exports. Export-promotion bodies also support market access, exhibitions and international buyer relationships.

The key policies are:

• Mandatory gold hallmarking and HUID traceability strengthen purity assurance and improve transparency across the organised jewellery ecosystem

• Basic Customs Duty on cut and polished diamonds and coloured gemstones was reduced from 5.0% to 2.5% in Union Budget 2026-27, with rough coloured gemstones exempted

• India-UAE CEPA provides preferential market access and supports jewellery exports into the UAE, a major gateway to Middle East demand

• Government and GJEPC export-promotion initiatives focus on assisting exporters, identifying new markets and strengthening India’s position across the global gems-and-jewellery trade