FRIDAY, APRIL 25, 2025
India’s gems and jewellery sector projected to reach $128 billion by 2029
Published on Apr 21, 2025
By IANS
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- NEW DELHI — India’s gems and jewellery industry is expected to surge from $83 billion in 2024 to $128 billion by 2029, growing at a compound annual growth rate (CAGR) of 9.5 per cent, a report showed on Monday.
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- Gold continues to dominate the market with an 86 per cent share, but lab-grown diamonds (LGDs) are emerging as a powerful growth catalyst, said the report by 1Lattice.
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- The LGD segment, currently valued at $345 million (2024), is projected to grow at a CAGR of 15 per cent to reach $1.2 billion by 2033.
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- India now contributes 15 per cent of global LGD production, with exports growing 8 times over the past four years, reaching $1.3 billion in FY24.
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- “India's gems and jewellery market is evolving rapidly at the intersection of heritage and innovation. The rise of lab-grown diamonds, powered by digital commerce, affordability and sustainability consciousness, is reshaping the future of jewellery retail,” said Ashish Dhir, Senior Director–Consumer and Retail, 1Lattice.
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- Key drivers of this market expansion include rising disposable income among India's middle class, fuelling demand for luxury and investment-grade jewellery, branded and certified jewellery gaining traction, driving organised retail and consumer trust, digital transformation led by e-commerce, virtual try-ons, and AI-powered personalisation, with online sales projected to comprise 10 per cent of total jewellery sales.
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- Other drivers are government interventions, including a 5 per cent duty cut on LGD seeds and a $30 million research grant to boost domestic LGD manufacturing capabilities and sustainability and customisation as top consumer priorities, especially among Gen Z and Millennials, reshaping product preferences and brand loyalties, the report noted.
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- The report highlighted the industrial potential of LGDs across sectors like semiconductors, aerospace, and optics, though India currently lacks domestic HPHT (High-Pressure, High-Temperature) machine fabrication, pointing to a significant white-space opportunity for investors and tech players.
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