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Indian Gems & Jewellery Industry Sales to Grow 50% by 2013
Jun 19, 2009

The Indian gems & jewellery industry is anticipated to grow by 50% of its current value by 2013 on account of high consumption and skilled manpower.

The All India Gem and Jewellery trade Association has set a target of 50% rise in the retail turnover of Rs 1,12,000 Crore domestic jewellery industry for 2013, as reported by Business Line.

The Indian gems & jewellery industry had a share of 4% in the global gems & jewellery market during 2006-07, said the Investment Commission of India.

The federation has predicted 15% growth in the jewellery industry for the current year and has projected 15-18% annual growth for next few years. The domestic jewellery market is expected to soar to US$ 16.1 Billion in 2009 and will likely to reach US$ 25.2 Billion in the coming two to three years.

The gems & jewellery industry is one the fastest growing segments of the Indian economy. India is also the biggest consumer of gold in the world, with nearly 20% of the global consumption. Although the global economic downturn has severely hit the industry, it is expected to rise at rapid pace in coming years.

Moreover, the industry has the benefit of skilled jewellery designers who produce high volume of exquisite products at a very low cost. In fact, jewelers in the country are emphasizing on the light weight products with new designs to boost the weak demand amid recession.

The Indian gems & jewellery industry is highly fragmented, with a large proportion of the market is controlled by unorganized players. A good number of jewellery companies are privately owned, but still India has gained prominence as a leading international destination for importing high quality designer jewellery.

Besides, the Indian government has implemented business friendly foreign trade policies such as 100% foreign direct investment (FDI) in gems and jewellery industry via the automatic route.

According to a Research Analyst at RNCOS, “India represents the world’s fastest growing jewellery market, where the branded jewellery’s share in the domestic sales is continuously growing. However, the industry should use the current tough time to improve the educational programs for front-line staff, increasing consumer confidence and adopting best practices from other countries such as China and Hong Kong to become the world leader.”

Related Market Research Reports:
Middle East Retail Sector Forecast to 2013
Indian Cosmetic Sector Analysis (2009-2012)
U.S. Convenience Stores Market Outlook to 2013