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Indian Diamond Jewellery Market to Strike $6.1 Billion in 2010-11
Oct 15, 2009

Surging demand for diamond jewellery in India is likely to hit the mark of $6.1 Billion in 2010-11, thereby somewhat making up for the falling overseas demand.
 
Diamond jewellery sales in India are anticipated to go upto $6.1 Billion in 2010-11, depicting an increase of 50% from the current level of $4.2 Billion, reported Times of India.

According to the industry experts, the Indian jewellery market stands at $16 Billion, and includes diamond, gold and platinum among others. The sales of diamond jewellery have surged from $1 Billion to the current level of $4.2 Billion.

The domestic market has begun witnessing better sales just ahead of the festive season in the country. Although domestic market constitutes merely a small portion of the total gems and jewellery industry in India, a lot of focus is now being given to it. To gain maximum from this festive season, jewelers are trying to keep their prices competitive.

Jewellery manufacturers are now eyeing the domestic diamond jewellery industry of India. Considering the fact that just 15% of India’s total jewellery market is accounted by diamonds, the manufacturers are seeing immense growth prospects in domestic market.

Moreover, a new research report “Indian Gems and Jewellery Market - Future Prospects to 2011” by RNCOS reveals that Indian gems and jewellery market is one of the most competitive markets in the world, supported by its vast pool of skilled laborers and low production cost. In fact, availability of highly-skilled low-cost manpower as well as strong government support in the form of incentives, along with establishment of SEZs, has been driving the Indian gems and jewellery market.

Another positive thing that have happened with this highly labor-intensive industry is that half of nearly two lakh skilled workers, who lost their jobs due to recession, returned back to work.

In the meantime, the decision of the government to establish diamond bourses provides a big opportunity to the country to become an international trading hub. Besides, this would also reduce the dependency of diamantaires to purchase and sell rough and polished stocks in Israel, Belgium, China, Hong Kong and Dubai.

According to a Research Analyst at RNCOS, “As the Unites States, which accounts for a big share of 45% of the world jewellery consumption, is yet to overcome the impact of recession, the surging demand for diamond jewellery in the domestic market seems to provide the much-required relief to the Indian gems and jewellery industry.”

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