Year in Review: India’s Gems and Jewellery Industry Sets Sights on $100 Billion Milestone by 2025

A Year of Resilience and Growth for India’s Gems and Jewellery Industry

The Indian gems and jewellery industry has emerged stronger from the challenges of 2024, setting a robust foundation for a promising 2025. According to the All India Gem and Jewellery Domestic Council (GJC), the sector is well-positioned to achieve a valuation of $100 billion by 2025, driven by growing domestic demand, export potential, and strategic initiatives.

As a critical contributor to India's economy, this industry is expected to play a pivotal role in driving GDP growth and generating millions of jobs in the coming years. Here’s an in-depth look at the industry’s performance, emerging trends, and future prospects.

Performance Highlights of 2024

Robust Domestic Demand

• GJC Chairman Saiyan Mehra highlighted the sustained demand for gold, silver, and diamond jewellery in 2024, driven by India’s growing middle class and young population.

• The wedding jewellery market, a significant driver, continued to bolster the sector, with millions of weddings in 2024 generating increased consumption.

Export Trends

• Despite a 12.94% decline in overall gems and jewellery exports to $1,986.21 million (₹16,763.13 crore) in November 2024, certain segments like plain gold jewellery saw a remarkable growth of 72.12%.

• Challenges persisted in the export of cut and polished diamonds and lab-grown diamonds due to prolonged geopolitical tensions.

Silver Jewellery Gains Popularity

• GJC Vice Chairman Rajesh Rokde noted a surge in demand for silver jewellery, particularly among younger consumers, who prefer affordable and sustainable options.

Key Trends Shaping the Industry

Digital Transformation and Sustainability

• The industry is undergoing a digital revolution, with online platforms enabling wider accessibility to jewellery.

• Growing awareness of sustainability and responsible sourcing practices is influencing consumer preferences, leading to increased interest in lab-grown diamonds and eco-friendly jewellery.

Gold as Investment and Fashion

• Gold continues to serve a dual role in India—as a timeless fashion accessory and a reliable investment vehicle. This dual utility has enhanced its appeal, particularly among younger buyers.

Volatile Precious Metal Prices

• Gold prices remained unpredictable, but consumer demand showed resilience.

• Silver prices experienced a significant uptick, fueled by industrial demand and investor interest.

Projections for 2025: A Golden Future

The outlook for 2025 is overwhelmingly positive, with experts predicting strong growth across the sector:

• Gold Sales: Expected to grow by 12-15%, supported by increasing investment and wedding-related purchases.

• Silver Sales: Anticipated to rise by 15-18%, driven by continued demand among younger consumers and industrial applications.

• Wedding Boom: Over 4 million weddings are projected in 2025, providing a major boost to jewellery consumption.

The sector is also expected to achieve a compound annual growth rate (CAGR) of 5-6%, underscoring its long-term potential.

Challenges and Opportunities

Geopolitical Tensions

• Prolonged geopolitical conflicts have disrupted export activities, particularly for diamonds. Any further developments could continue to impact trade dynamics.

Holiday Season Momentum

• With the holiday season around the corner, heightened buying sentiment is expected to drive demand, mitigating some of the challenges faced earlier in the year.

Innovation in Jewellery

• The industry is leveraging technology and innovation to cater to evolving consumer preferences, ensuring its relevance in a competitive global market.

A Bright Path Ahead

India’s gems and jewellery industry is on a transformative journey, navigating challenges with resilience and innovation. As the sector eyes a $100 billion valuation by 2025, its contributions to the economy, job creation, and global trade cannot be overstated.

With a strong domestic market, increasing exports, and a focus on sustainability and digitalization, the industry is poised to shine brighter than ever. As 2025 approaches, the stage is set for India’s gems and jewellery sector to further solidify its position as a global leader in the world of sparkle and brilliance.