Gold, diamonds to drive jewellery growth in India
Growing preference for platinum and luxury items is unlikely to take the glitter away from gold and shine from diamonds and the traditional favourites will continue to drive jewellery growth in India, a KPMG study has said.
By PTI |
NEW DELHIl: Growing preference for platinum and luxury items is unlikely to take the glitter away from gold and shine from diamonds and the traditional favourites will continue to drive jewellery growth in India, a KPMG study has said.
"Total demand for jewellery is expected to reach $18.25 billion in 2010 and $28.28 billion in 2015, with gold and diamond acting as the main drivers of this growth," KPMG said in a study for Gems and Jewellery Export Promotion Council (GJEPC).
India's consumption of gems and jewellery has grown at 10.2 per cent over the last five years and is expected to reach $13.1 billion this year. The country's importance in the global jewellery market would increase in future, the study said.
Diamond jewellery consumption is forecast to jump 78 per cent by 2010 and then further by close to 100 per cent between 2010 and 2015. In the last five years, demand for diamond jewellery has risen at a compounded annual growth rate of 43.5 per cent and stood at $1.51 billion in 2005.
The industry is currently witnessing a variety of trends and changes such as emergence of new manufacturing locations and reduction in the concentration around Surat and Mumbai, technological changes and increased design sophistication.
Other trends include adoption of industry standards, forward integration of diamond processors into jewellery manufacturing and integration of manufacturers and retailers.
"Total demand for jewellery is expected to reach $18.25 billion in 2010 and $28.28 billion in 2015, with gold and diamond acting as the main drivers of this growth," KPMG said in a study for Gems and Jewellery Export Promotion Council (GJEPC).
India's consumption of gems and jewellery has grown at 10.2 per cent over the last five years and is expected to reach $13.1 billion this year. The country's importance in the global jewellery market would increase in future, the study said.
Diamond jewellery consumption is forecast to jump 78 per cent by 2010 and then further by close to 100 per cent between 2010 and 2015. In the last five years, demand for diamond jewellery has risen at a compounded annual growth rate of 43.5 per cent and stood at $1.51 billion in 2005.
The industry is currently witnessing a variety of trends and changes such as emergence of new manufacturing locations and reduction in the concentration around Surat and Mumbai, technological changes and increased design sophistication.
Other trends include adoption of industry standards, forward integration of diamond processors into jewellery manufacturing and integration of manufacturers and retailers.
ADVERTISEMENT
"These trends are nascent and are likely to strengthen in the years to come," the study said.
The industry, which traditionally grew by polishing lower quality stones, is now processing the full range of sizes and qualities of gemstones, including stones larger than 10 carats in size, KPMG said.
"In recent years, Indian processing companies have been seen to be experimenting with more complex cuts and colours. From a formalisation and technological point of view, the industry is continuously evolving," the study said.
Influx of new brands in the domestic market would also spur the growth of jewellery in India.
The jewellery retail sector, traditionally dominated by small scale local players is rapidly moving toward greater organisation as retail channels mature and penetrate across the country, it added.
ADVERTISEMENT
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
