The report throws light on the jewellery segmentation in India while also dissecting the regional, income and demographic demand for gold jewellery. It further explores some of the largest gold jewellery export destinations for India and a solid outlook for the industry.

Somasundaram PR, Regional CEO, India, World Gold Council, said, “India is a strong pillar of support for the global gold markets as the second-largest consumer of gold jeweller. While weddings and festivals act as important drivers of jewellery demand, our rich cultural heritage and historic status as a major global force in world commerce underpin this strong socio-economic relationship with gold. Over time, we have created countless reasons and joyous occasions to accumulate gold. Bridal jewellery segment alone accounts for nearly half of the market share with rural India being the largest consumer of gold jewellery in the country. 

Over the long term, gold jewellery demand in India will be driven by economic growth, income growth and wealth distribution, as well as the rate of urbanisation. Whether cultural connections will continue to remain strong with the millennials is to be seen. It is more likely though that the marketing and digital advances may change in-store experiences and inspire different buying impulses and moments beyond just the traditional reasons, the attraction to gold jewellery can be expected to remain strong. The government’s focus on strengthening jewellery manufacturing and exports will bring in a wave of innovation that should refresh the association with gold through higher quality and craftsmanship, enabling India to be the jeweller to the world.”

Key data points mentioned in the report:

India is the second largest gold jewellery consumer in the world. In 2021 India bought 611t of gold jewellery, second only to China (673t) but comfortably ahead of all other gold-consuming markets
The gold jewellery exports in India have grown from US $7.6bn in 2015 to US $12.4bn in 2019
Bridal jewellery dominates the gold jewellery landscape, enjoying 50-55% of market share in India
Plain gold jewellery maintains 80-85% of market share, the majority of which is 22-carat although the market for 18-carat jewellery is growing  
Daily wear jewellery accounts for 40-45% of the market
Rural India is the largest consumer of gold jewellery occupying 55-58% of the market share
The middle class is the primary gold consumer in India
South India dominates Indian gold jewellery consumption, accounting for 40% of the country’s total jewellery demand
Gold accounted for 23% of gem and jewellery exports in 2021
Plain gold jewellery exports accounted for 38% of gold jewellery exports from India in 2021
Over the last decade nearly 90% of India’s jewellery exports have flowed to just five major markets: namely, the UAE, the US, Hong Kong, Singapore and the UK
US surpassed UAE as the top destination for Indian Jewellery exports in 2021
The share of SEZs in total gold jewellery exports collapsed after the pandemic.