Sone ki Chidiya (India) for many reasons has been hustling since the very first Covid-19 case and the impact of hustle and bustle can be visible in various industries and people's life. While the world was crumbling under an economic crisis, the jewelry industry was also dipping. The gems and jewelry industry has been one the most fluidic market place for many decades yet suffered and sharply crashed due to its fall in demand and exports. Wave after wave of Covid didn't let it recover completely. The last festive season in India gave hope to the industry with a visible jump in sales and observe things getting back on track.
So, what is ahead for this industry that has survived all odds and proved to be the phoenix rising from the ashes?
2021 had been a global paradigm shift year and espouse the new normal. The constant digitalization in India has changed the entire process of doing business. The new online companies have hastened all industries and the jewelry industry is no exception to this! Apart from the digital market, it impacted other areas from the process of designing to its distribution. The advanced digital platforms enabled the drafting of high-quality and standard jewelry designs with high-end detailing. The Indian jewelry industry has beheld towering growth in online retail businesses. Many big players in the industry 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 to $111.40 billion by 2025 from $46.2 billion as of 2020. By 2030, it is expected to reach $350 billion.
As far as February 2021, India’s trade of gold and diamond put up ~7.5 percent of India’s Gross Domestic Product (GDP) and 14 percent of India’s total merchandise exports. The significant visible growth in exports is because of escalated demand in the export market of the United States and fulfillment of orders received by various exhibitors of India in Virtual Buyer-Seller Meets (VBSMs) conducted by Gems and Jewelry Export Promotion Council of India (GJEPC).
India’s exports of gems and jewelry were $39.14 billion in 2021-22, with a visible 54.13 percent rise from the last year, and in April 2022, India’s overall exports of gems and jewelry were at $3.23 billion.
The Government of India aims for a $70 billion export of jewelry and gems in the upcoming five years (until 2025). For boosting businesses government is also taking initiatives:
• Free Trade Agreement (FTA) was signed with the UAE, to further boost exports and reach the target of $52 billion.
• The government also reduced customs duty on cut and polished diamonds and colored gemstones for the healthy growth of artisans.
• The act of SEZ was also revised with expectations to boost more exports.
• Gold monetization scheme, reduction in import duty of gold, hallmarking and others revamped that would help the manufacturers to grow more.
• Mandatory hallmarking for artifacts and gold jewelry.
There is also a popular saying that Indians are the fondest of gold and with the data mentioned above it is very visible and Indian women are holding the world’s 11 percent of gold. Also, the government scheme 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 now not only limited to fashion but has grown significantly as an investment option. Thus, we Indians also like to gift gold and jewelry, and these increasing instances of festival gifting exchanges and changing consumer preferences toward celebration presents for families and friends are also leading to the growth of the Indian Gems and Jewelry Market for the upcoming five years. The growing demand for high-quality and branded gold and jewelry products and the assurance of the real, authentic and pure form of the luxury metals and gems in the jewelry products are also helping the growth of the Indian Gems and Jewelry Industry.
For the upcoming years, growth in the gems and jewelry sector would largely be contributed only by the growth and development of large retailers/brands/artisans. Established brands are guiding the market and are coming up with new opportunities to grow and strengthen the market. Increasing penetration of top players in the segments provides variety in designs and products. Also, the relaxation of restrictions on gold import by the Indian government is likely to provide a fillip to the market. The improvement in the availability of materials along with the re-introduction of gold metal loans with low-cost and likely stabilization of prices at lower levels is expected to drive growth and volume for artisans over the term and the demand for gems and jewelry will be significantly supported by the recent positive developments within the industry.