India Jewelry Demand will Grow to $48B by 2015
By Dilipp S Nag http://www.diamonds.net
RAPAPORT... The annual value of India’s local gems and jewelry trade is expected to rise to $47.9 billion (INR 2.13 trillion) by 2015, approximatley 75 percent higher than its current levels, according to a study by the Associated Chambers of Commerce and Industry of India (ASSOCHAM). The umbrella industry body noted that the sector is currently valued at around $27.5 billion (INR 1.22 trillion) and is growing at a rate of 15 percent year on year.
''Rising purchasing power, lifestyle changes and overall increasing affordability among Indian middle class are significant reasons for higher jewelry demand,'' said D.S. Rawat, secretary general of ASSOCHAM.
The group reasoned that jewelry is considered to be a trusted source of value and that a large number of Indian consumers view jewelry as a safe investment option. The study added that the number of consumers going online to buy jewelry has also been rising, which is further aiding the growth.
''There are various online jewelry shops where customers can choose from a wide variety of items and place an order from the luxury of their home and get it delivered to their doorstep, this trend is catching up fast due to increasing internet penetration and availability of top-notch broadband services,” said Rawat.
ASSOCHAM reported that at the current rate of growth, India’s gem and jewelry exports could exceed $50 billion in the current fiscal year that ends March 31, 2012. Growth is expected to be boosted by the annual festive season, which runs from August through October.
The study showed that growth is largely being driven by India’s diamond manufacturing market but warned that China jewelry is emerging as a tough competitor with an increasing number of diamond cutters, from various countries including India, setting up facilities there. This is due to China’s use of better technology, a cheap and disciplined workforce, and a surge in number of Chinese consumers, the study noted.
Demand in the sector is coming from the United Arab Emirates (UAE), the U.S., the European Union, Russia, Latin America Hong Kong and China, ASSOCHAM reported.
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