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1、 1 ort Title-Techno economic viability study of a greenfield capacity of 5MLPD ethanol plant for Submitted by CareEdge Research and Training Ltd Industry Report On Indian Gems and Jewellery 04th January,2025 2 Industry Research Report on Indian Gems and Jewellery Sector Table of Contents 1 Economic

2、Outlook.6 1.1 Global Economy.6 1.2 Trend in Global Inflation rate.8 1.3 Trend in Global Trade.9 1.4 Indian Economic Outlook.9 1.5 Trends in Per Capita State Domestic Product(SDP).11 1.6 Consumer Price Index.12 1.7 Trend in Household Savings.13 1.8 Rural and Urban Consumption.14 1.9 Household Spendin

3、g patterns.15 1.10 Trend in Gross Savings(as%of GDP).16 1.11 Trend in Indias Merchandise Exports.16 1.12 Trend in Private Consumption.17 1.13 Growth of the middle class in India and the rural economy in India.18 1.14 Increasing Womens participation in the Workforce.18 1.15 Trends in Population Growt

4、h.19 1.16 Key growth/demographic drivers for economic growth.21 1.17 Key structural reforms announced by the government of India.23 1.18 Concluding Remarks.24 2 Indian Retail Consumer Basket.26 2.1 Overview.26 2.2 Indian Retail Market.26 2.3 Demand Drivers for the Indian Retail Market.27 2.4 Overvie

5、w of the Organized Indian Retail Market.29 2.5 Trends in the Retail Industry by Segment.29 3 Global Gems and Jewellery Industry.32 3.1 Overview of the Global Gems and Jewellery Industry.32 3.1.1 Market Size and Trend of the Global Gems and Jewellery Industry.33 4 Indian Gems and Jewellery Industry.3

6、4 4.1 Overview of Indian Gems&Jewellery Industry.34 4.2 Indian Gems&Jewellery Industry Market Size.34 4.3 Indian gold jewellery industry market size(CY20-CY29).35 4.4 Share of Various Segments in the Indian Gems&Jewellery Industry.37 4.5 City-Wise Demand of the Indian Jewellery Market.39 4.6 Indicat

7、ive Share of Indian Gems and Jewellery Industry.40 4.7 Domestic Gold Demand from Various Segments.42 4.8 Impact of Interest Rates,Geopolitical Tensions on Gold Prices.42 4.9 Trends in Imports and Exports of Gems and Jewellery in India.43 4.9.1 Overview.43 4.9.2 Product-Segment Wise Import and Export

8、 Trend.46 4.10 Key Demand Drivers and Opportunities for Jewellery in India.50 4.11 Outlook for the Gems&Jewellery Industry in India.52 5 Gems and Jewellery Retailing Market in India.54 5.1 Overview.54 5.2 Share of Organized Players in the Indian Gems and Jewellery Industry.55 5.3 Retail Jewellery Ma

9、rket in India by Region,Type and Trends.56 3 Industry Research Report on Indian Gems and Jewellery Sector 5.3.1 East India Retail Jewellery Market.56 5.3.2 North India Retail Jewellery Market.57 5.3.3 West and Central India Retail Jewellery Market.57 5.3.4 South India Retail Jewellery Market.58 5.4

10、Factors Adding Growth of the Organized Retail Jewellery Market.58 5.5 Dynamics of Large and Small Format Stores in the Gold Retail Market.59 5.6 SWOT Analysis of Organized Jewellers in India.61 5.7 Overview and Recent Trends of Online Retailing of Gems and Jewellery in India.61 6 Bridal Jewellery Se

11、gment.64 6.1 Overview.64 6.2 Evolution of the Wedding Industry and Market Trends.64 6.3 Segments of the Indian Jewellery Industry.65 6.4 Trends in Bridal Jewellery.69 6.5 Trends in Lightweight Jewellery.69 6.6 Trends in Costume Jewellery.70 6.7 Indian Weddings:From Simplicity to Luxury.70 7 Gold Jew

12、ellery Wholesale Market in India.71 7.1 Indian Gold Jewellery Wholesale Market Size.71 7.2 India Wholesale Gold Jewellery Market by Manufacturers.72 7.3 Indian Wholesale Gold Jewellery Market Breakup by Wearing.74 7.4 Indian Wholesale Gold Jewellery Market Breakup by Product Type.75 7.5 Outlook of t

13、he Gold Jewellery Wholesale Market in India.77 8 Regulatory Process and Framework for the Gems&Jewellery Industry in India.79 8.1 FDI Norms.79 8.2 Goods&Services Tax(GST).79 8.3 Gold Imports by the RBI.79 8.4 Authorized Banks for Purchase of Gold.79 8.5 Central Governments Gold Monetization Scheme.8

14、1 8.6 Training Initiatives by Government Agencies such as the Gems and Jewellery Skill Council of India.82 8.7 Hallmarking of Jewellery in India.83 8.8 Jewellery Parks.83 8.9 KYC Compliance.83 9 Threats and Challenges for the Gems and Jewellery Industry.85 10 Peer Mapping.87 10.1 Shanti Gold Interna

15、tional Limited.87 10.2 Utssav CZ Gold Jewels.87 10.3 RBZ Jewellers Ltd.88 10.4 Sky Gold Ltd.89 List of Tables Table 1:GDP growth trend comparison-India v/s Other Economies(Real GDP,Y-o-Y change in%).6 Table 2:RBIs GDP Growth Outlook(Y-o-Y%).11 Table 3:Per Capita SDP for Key States(at constant prices

16、,in Rs.).11 Table 4:Investments by Corporates.22 Table 5:Trend in Imports and Exports of Cut&Polished Diamonds.46 4 Industry Research Report on Indian Gems and Jewellery Sector Table 6:Import Trend of Rough Diamonds.47 Table 7:Exports of Gold Jewellery.48 Table 8:Imports of Raw Gold.49 Table 9:Compa

17、rison of Key Parameters-Small Format Vs Large Format Stores in Urban Areas.60 Table 10:Jewellery Demand Segmentation Based on Wearing Type.66 Table 11:State-wise Bridal Jewellery Products.68 Table 12:Authorized Banks Permitted to Purchase Gold from Other Countries.79 List of Charts Chart 1:Global Gr

18、owth Outlook Projections(Real GDP,Y-o-Y change in%).6 Chart 2:Inflation across key economies.9 Chart 3:Global Trend in Trade Volume of Goods and Services.9 Chart 4:Retail Price Inflation in terms of index and Y-o-Y Growth in%(Base:2011-12=100).13 Chart 5:Household Savings(at Current Prices).14 Chart

19、 6:Trend in rural consumption composition(in%).14 Chart 7:Trend in Urban Consumption.15 Chart 8:Shifting Patterns in Household Consumption Expenditure.15 Chart 9:Gross Savings(as%of GDP)(at current prices).16 Chart 10:Indias Merchandise Exports.17 Chart 11:Private Consumption(as%of GDP)(at current p

20、rices).17 Chart 12:Womens Labor Force participation rates.19 Chart 13:Gender-wise breakup of the population.19 Chart 14:Age-wise Breakup of the Population.20 Chart 15:Urbanization Trend in India.20 Chart 16:Dependency Ratio trend in India.21 Chart 17:Indian Retail Market Size,by Value(FY21-FY28P).27

21、 Chart 18:Net Disposable Income for Past.28 Chart 19:Share of Organised Retail.29 Chart 20:Retail Industry in India Segmentation.31 Chart 21:Global Gems and Jewellery Market Size(CY19-CY29P).33 Chart 22:Indian Gems&Jewellery Industry Market Size(CY20-CY29).35 Chart 23:Indian Gold Jewellery Industry

22、Market Size(CY20-CY29).36 Chart 24:Indian Gold Jewellery Industry Breakup by Region(%Share)in CY23.36 Chart 25:Indian Domestic Jewellery Market Share in CY23.37 Chart 26:Gold Demand Trend in India.38 Chart 27:City-Wise Demand of the Jewellery Market(Top 10)in CY23.39 Chart 28:Gems and Jewellery Mark

23、et Breakup-By Material Type(CY23).41 5 Industry Research Report on Indian Gems and Jewellery Sector Chart 29:Trend in Domestic Gold Demand-in Volume Terms.42 Chart 30:Trend in International Gold Prices.42 Chart 31:Yearly Import Export Trends-Overall Gems and Jewellery.43 Chart 32:Country-wise Export

24、 Share in FY24-Overall Indian Gems and Jewellery.44 Chart 33:Trend in the Share of the US Market in Indian G&J Exports.44 Chart 34:Share of Exports of Middle Eastern Countries-Overall Indian Gems and Jewellery in FY24.45 Chart 35:Export Trend for Gems and Jewellery to the Middle East.45 Chart 36:Tre

25、nd in Rough Diamond Import Prices.47 Chart 37:Country-Wise Share in Imports of Rough Diamond in FY24.48 Chart 38:Seasonality in Jewellery Buying.50 Chart 39:Trend of Per Capita Gross National Disposable Income(Current Price).51 Chart 40:Retail Gems and Jewellery Market Size in India(CY19-CY24P).55 C

26、hart 41:Organized Retail Jewellery Market Landscape in India by Market Share(CY23 Vs CY29P).55 Chart 42:Retail Jewellery Market Break-Up by Region(In%)(CY23).56 Chart 43:East India Retail Jewellery Market(CY19-CY24P).56 Chart 44:North India Retail Jewellery Market(CY19-CY24P).57 Chart 45:West and Ce

27、ntral India Retail Jewellery Market(CY19-CY24P).57 Chart 46:South India Retail Jewellery Market(CY19-CY24P).58 Chart 47:Online Jewellery Market Size in India(CY20 Vs CY25P Vs CY29P).62 Chart 48:India Wedding Market:Breakup by Wedding Expenditure(in%),CY23.65 Chart 49:Indian Jewellery Market Break-up

28、 by Region(%Share)in CY23.66 Chart 50:Indian Gold Jewellery Wholesale Market Size,CY202029P.71 Chart 51:India:Wholesale Gold Jewellery Market:Breakup by Manufacturing Type(in%),CY23.72 Chart 52:India:Wholesale Gold Jewellery Market(Organized Manufacturers):Sales Value(in Rs.Billion),CY202029P.73 Cha

29、rt 53:India:Wholesale Gold Jewellery Market(Unorganized Manufacturers):Sales Value(in Rs.Billion),CY202029P.74 Chart 54:Indian Wholesale Gold Jewellery Market Breakup by Wearing(in%),CY23.75 Chart 55:Indian Wholesale Gold Jewellery Market Breakup by Wearing(in%),CY23.76 Chart 56:Significant Cuts in

30、Customs Duty on Gold.80 6 Industry Research Report on Indian Gems and Jewellery Sector 1 Economic Outlook 1.1 Global Economy Global growth,which stood at 3.3%in CY23,is anticipated to fall to 3.2%in CY24 and then bounce back again to 3.3%in CY25.The CY24 forecast has remained same compared to the Ap

31、ril 2024 World Economic Outlook(WEO)Update,and increased by 0.1 percentage point compared to the January 2024 WEO.Despite this,the expansion remains historically low,attributed to factors including sustained high borrowing costs,inflation woes,reduced fiscal support,lingering effects of Russias Ukra

32、ine invasion,IranIsrael War,sluggish productivity growth,and heightened geo-economic fragmentation.Chart 1:Global Growth Outlook Projections(Real GDP,Y-o-Y change in%)Notes:P-Projection;Source:IMF World Economic Outlook,July 2024 Table 1:GDP growth trend comparison-India v/s Other Economies(Real GDP

33、,Y-o-Y change in%)Real GDP(Y-o-Y change in%)Real GDP(Y-o-Y change in%)CY20 CY21 CY22 CY23 CY24P CY25P CY26P CY27P CY28P CY29P India-5.8 9.7 7.0 8.2 7.0 6.5 6.5 6.5 6.5 6.5 China 2.2 8.5 3.0 5.2 5.0 4.5 3.8 3.6 3.4 3.3 Indonesia-2.1 3.7 5.3 5.0 5.0 5.1 5.1 5.1 5.1 5.1 Saudi Arabia-3.6 5.1 7.5-0.8 1.7

34、 4.7 4.0 3.5 3.0 3.5 Brazil-3.3 4.8 3.0 2.9 2.1 2.4 2.1 2.0 2.0 2.0 Euro Area-6.1 5.9 3.4 0.5 0.9 1.5 1.4 1.3 1.3 1.2 United States-2.2 5.8 1.9 2.5 2.6 1.9 2.0 2.1 2.1 2.1 P-Projections;Source:IMF-World Economic Outlook Database(July 2024)-6.0%-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%CY19CY20CY21CY22CY23CY24PC

35、Y25PCY26PCY27PCY28PCY29PGDP growth(Y-o-Y%)WorldAdvanced EconomiesEmerging Market and Developing Economies 7 Industry Research Report on Indian Gems and Jewellery Sector Advanced Economies Group Advanced economies are expected to experience a gradual increase in growth,remaining same at 1.7%in CY23 a

36、nd CY24 and increasing to 1.8%in CY25.The projection for CY24 and CY25 remains unchanged compared to the April 2024 WEO Update.The United States is expected to see growth rise to 2.6%in CY24,followed by a slight slowdown to 1.9%in CY25.This deceleration is attributed to gradual fiscal tightening and

37、 labor market softening,which dampen aggregate demand.The CY24 projection has been revised downward by 0.1 percentage points since the April CY24 WEO Update.This revision primarily reflects carryover effects from stronger-than-expected growth in the fourth quarter of CY23,with some of this momentum

38、expected to continue into CY24.The Euro Areas growth is anticipated to rebound from its sluggish rate of 0.5%in CY23,mainly influenced by significant exposure to the conflict in Ukraine.Projections indicate an increase to 0.9%in CY24 and further to 1.5%in CY25.This recovery is driven by stronger hou

39、sehold consumption,as the impact of elevated energy prices diminishes and declining inflation bolsters real income growth.Additionally,strong momentum in services,higher than expected net exports,and higher investments have further driven this growth.But,countries like Germany are expected to have a

40、 sluggish recovery on account of weak manufacturing growth.Emerging Market and Developing Economies Group Emerging market and developing economies are forecasted to maintain stable growth at 4.3%in both CY24 and CY25.This forecast has been revised upwards by 0.1 percentage point as compared to the A

41、pril 2024 WEO update on account of stronger activity in Asia,particularly China and India.Growth prospects in economies across the Middle East and Central Asia continue to be weighed down by oil production and regional conflicts.Growth forecast of sub-Saharan Africa has also been revised downward on

42、 account of weak economic activity.Low-income developing countries are anticipated to experience a gradual growth uptick,starting at 3.9%in CY23 and climbing to 4.4%in CY24 and 5.3%in CY25,as certain constraints on near-term growth begin to ease.The economic forecast for emerging and developing Asia

43、 reveals a modest deceleration in growth,with projections indicating a decline from 5.7%in CY23 to 5.4%in CY24 and 5.1%in CY25.Chinas trajectory reflects a slowdown,transitioning from 5.2%in CY23 to 5.0%in CY24 and 4.5%in CY25 due to fading post-pandemic stimuli and ongoing property sector challenge

44、s.In contrast,Indias growth remains robust,with anticipated rates of 7.0%in CY24 and 6.5%in CY25,bolstered by resilient domestic demand and a burgeoning working-age populace.The Indonesian economy is expected to register growth of 5.0%in CY24 and 5.1%in CY25 with a strong domestic demand,a healthy e

45、xport performance,policy measures,and normalization in commodity prices.Saudi Arabias growth slowed at-0.8%in CY23 attributed to lower oil production.CY24 is predicted to see a revamp in the growth rates to 1.7%on account of Vision 2030 reforms that helped advance the countrys economic diversificati

46、on agenda,including through reduced reliance on oil.The forecast for CY24 has been revised downward as compared to the April 2024 WEO update on account of extension of oil production cuts.Going forward,GDP is expected to grow at 4.7%and 4.0%in CY25 and CY26,respectively.On the other hand,Brazils gro

47、wth is projected to ease to 2.1%in CY24,driven by fiscal consolidation,the lingering impact of tight monetary policies,and reduced contributions from the agricultural sector.There has been a downward revision in forecast for CY24 compared to April 2024 WEO update on account of the near-term impact o

48、f flooding.Going forward,GDP is expected to grow at 2.4%in CY25 on account of reconstruction following the floods and supportive structural factors.Despite the turmoil in the last 2-3 years,India bears good tidings to become a USD 5 trillion economy by CY27.According to the IMF dataset on Gross Dome

49、stic Product(GDP)at current prices,the nominal GDP has been at USD 3.6 trillion for CY23 and is projected to reach USD 5.3 trillion by CY27 and USD 6.4 trillion by CY29.Indias expected GDP growth rate for coming years is almost double compared to the world economy.8 Industry Research Report on India

50、n Gems and Jewellery Sector Besides,India stands out as the fastest-growing economy among the major economies.The country is expected to grow at more than 6.5%in the period of CY24-CY29,outshining Chinas growth rate.By CY27,the Indian economy is estimated to emerge as the third-largest economy globa

51、lly,hopping over Japan and Germany.Currently,it is the third-largest economy globally in terms of Purchasing Power Parity(PPP)with a 7.6%share in the global economy,with China 18.7%on the top followed by the United States 15.6%.Purchasing Power Parity is an economic performance indicator denoting th

52、e relative price of an average basket of goods and services that a household needs for livelihood in each country.Despite Covid-19s impact,high inflationary environment,and interest rates globally,and the geopolitical tensions in Europe,India has been a major contributor to world economic growth.Ind

53、ia is increasingly becoming an open economy as well through growing foreign trade.Despite the global inflation and uncertainties,Indian economy continues to show resilience.This resilience is mainly supported by stable financial sector backed by well-capitalized banks and export of services in trade

54、 balance.With this,the growth of Indian economy is expected to fare better than other economies majorly on account of strong investment activity bolstered by the governments capex push and buoyant private consumption,particularly among higher income earners.1.2 Trend in Global Inflation rate Since 2

55、022,inflation has been falling for all major global economies following a surge in inflation during 2021-22 due to the twin supply shocks of COVID and Russian invasion of Ukraine.This surge was preceded by a long period of low inflation for US,UK and the Eurozone countries like Germany.While inflati

56、on accounted due to the large fiscal stimulus provided in these countries was foreseen,the Russia-Ukraine war added an additional shock and led to this surge specially in Germany with high energy and gas bills being the major contributors of inflation.Even Japan which has had disinflation for many y

57、ears,also saw an uptick in inflation post 2022 after which the Bank of Japan finally raised rates after years of ultra-loose monetary policy.Seeing these price shocks as transitory,Central Banks around the world reacted a little late to inflation but have been on a tightening cycle since 2022.Inflat

58、ion,while falling,is yet to reach to pre-pandemic levels for these countries.For China,this trend has been contradictory with its inflation remaining lower than many of its peers during 2020-2023,with a little rise in 2022,raising concerns of deflation.Unlike other major global economies,consumer sp

59、ending did not rise much when lockdown restrictions were lifted.Weak domestic demand along with weak trade data,and challenges in housing market have been the major reasons for this trend.Youth unemployment along with increasing debt burden of the country are two major problems the country is facing

60、 whilst fighting deflation.While there has been recovery in manufacturing activity,increasing inflation numbers in 2024,it still is not expected to reach pre-pandemic level anytime soon.Indias response to the COVID-19 pandemic,through fiscal stimulus,had only a short-lived effect on inflation,which

61、remained persistently high compared to other economies.Over the past few years,the Indian economy has faced a series of shocks,including the pandemic,supply-chain disruptions,and geopolitical tensions,which have kept inflation elevated.The Reserve Bank of India struggled to keep inflation within its

62、 target range,missing its mandate during several quarters.Despite these difficulties,India has managed to reduce both headline and core inflation through strategic administrative and monetary measures.By tightening monetary policy and increasing interest rates,the RBI has successfully curbed core in

63、flation,bringing it down significantly by mid-2024.9 Industry Research Report on Indian Gems and Jewellery Sector Chart 2:Inflation across key economies Note:P-Projections,Source:IMF-World Economic Outlook Database(April 2024)1.3 Trend in Global Trade In CY23,the trade volume growth rate was relativ

64、ely low 0.8%,due to a mix of economic uncertainty,geopolitical tensions,inflationary pressures,and lingering supply chain disruptions,followed by a period of accelerated expected growth reaching 3.4%in CY25P,before stabilizing at around 3.3%for the subsequent years CY26P to CY29P.This pattern sugges

65、ts that trade volumes are expected to recover and grow steadily,with a more moderate pace of growth in the long run.Chart 3:Global Trend in Trade Volume of Goods and Services Note:P-Projections,Source:IMF-World Economic Outlook Database(October 2024)1.4 Indian Economic Outlook Resilience to External

66、 Shocks remains Critical for Near-Term Outlook Indias real GDP grew by 7.0%in FY23 and stood at Rs.161 trillion,as per the First Revised Estimate,despite the pandemic in previous years and geopolitical Russia-Ukraine spillovers.In Q1FY24,the economic growth accelerated CY19CY20CY21CY22CY23CY24PUS1.8

67、%1.2%4.7%8.0%4.1%2.9%UK1.8%0.9%2.6%9.1%7.3%2.5%Germany1.4%0.4%3.2%8.7%6.0%2.4%Japan0.5%0.0%-0.2%2.5%3.3%2.2%China2.9%2.5%0.9%2.0%0.2%1.0%India4.8%6.2%5.5%6.7%5.4%4.6%-2.0%0.0%2.0%4.0%6.0%8.0%10.0%0.8%3.1%3.4%3.4%3.3%3.3%3.3%0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%CY23CY24PCY25PCY26PCY27PCY28PCY29P 10 In

68、dustry Research Report on Indian Gems and Jewellery Sector to 8.2%.The manufacturing sector maintained an encouraging pace of growth,given the favorable demand conditions and lower input prices.The growth was supplemented by a supportive base alongside robust services and construction activities.Thi

69、s momentum remained in the range in the Q2FY24 with GDP growth at 8.1%,mainly supported by acceleration in investments.However,private consumption growth was muted due to weak rural demand and some moderation in urban demand amid elevated inflationary pressures in Q2FY24.The GDP growth number improv

70、ed for Q3FY24 at 8.6%.Indias GDP at constant prices surged to Rs.47.24 trillion in Q4FY24 from Rs.43.84 trillion in Q4FY23,marking a 7.8%growth rate.This upswing was fueled by robust performances in construction,mining&quarrying,utility services,and manufacturing sectors and investment drove the GDP

71、 growth,while both private and government consumption remained subdued.Real GDP in the year FY24 is estimated to grow at 8.2%at Rs.173.82 trillion as per provisional estimate of the Ministry of Statistics and Programme Implementation.It is expected that domestic demand,especially investment,to be th

72、e main driver of growth in India,amid sustained levels of business and consumer confidence.In Q1FY25,real GDP grew by 6.7%y-o-y,hitting a 15-month low,as compared to 8.2%y-o-y in the previous quarter.Private consumption,a key driver of the GDP,showed resilience increasing by 7.45%while government sp

73、ending contracted by 0.24%.This growth was largely driven by elections and extreme summer conditions,which impacted economic activities across several sectors.GDP Growth Outlook Driven by fixed investment and improving global environment,domestic economic activity continues to expand.The provisional

74、 estimates(PE)placed real GDP growth at 8.2%for FY24.Industrial activity led by manufacturing continues its momentum on the back of strengthening domestic demand.Moreover,the services sector-maintained buoyancy as could be observed by growth in high frequency indicators such as E-way bills,GST reven

75、ues,toll collections,aggregate,and a healthy growth in domestic air cargo and port cargo.The purchasing managers index for both manufacturing and services continues to exhibit a sustained and healthy expansion.Domestic economic activity remains strong.On the supply side,with advancing monsoon,kharif

76、 sowing has picked up,improving agricultural production prospects.Additionally,growth in GVA for major non-agricultural sectors like manufacturing,construction,and utilities has stayed above 5%for Q1FY25,indicating expansion in the mentioned sectors.On the demand side,household consumption is bolste

77、red by a recovery in rural demand and consistent discretionary spending in urban areas.Fixed investment activity is robust,supported by the governments ongoing focus on capital expenditure,healthy balance sheets of banks and corporates,and other policy measures.Private corporate investment is pickin

78、g up,driven by an increase in bank credit.Merchandise exports grew in June,albeit at a slower rate,while the growth in non-oil-non-gold imports accelerated,indicating resilience of domestic demand.Services exports saw double-digit growth in May 2024 before slowing down in June 2024.Improved agricult

79、ural activity would improve rural consumption,while urban consumption would be supported by buoyancy in services activity.Additionally,improvement in global trade prospects are expected to support external demand.11 Industry Research Report on Indian Gems and Jewellery Sector Persistent geopolitical

80、 tensions and volatility in international financial markets and geo-economic fragmentation do pose risk to this outlook.Based on these considerations,the RBI,in its August 2024 monetary policy,has projected real GDP growth at 7.2%y-o-y for FY25.Table 2:RBIs GDP Growth Outlook(Y-o-Y%)FY25P(complete y

81、ear)Q2FY25P Q3FY25P Q4FY25P Q1FY26P 7.2%7.2%7.3%7.2%7.2%Note:P-Projected;Source:Reserve Bank of India 1.5 Trends in Per Capita State Domestic Product(SDP)State Domestic Product is the total value of goods and services produced,during any financial year,within the geographical boundaries of a state.I

82、n FY23,Goa was the highest performing state with per capita SDP(at constant prices)of Rs.2,95,114 growing y-o-y by 0.19%.This growth can be attributed introduction of tourism policy in the state,setting up of institutions for higher education,and resumption in mining activities.Other states which co

83、mprise the top 10 best performing states on per capita SDP include Delhi,Gujarat,Karnataka,and Tamil Nadu growing y-o-y by 6.11%,6.71%,7.43%,and 7.99%,respectively.Tamil Nadu at the 10th position is followed closely by Maharashtra which has a per capita SDP of Rs.1,53,664.All these states have a per

84、 capita SDP above national average of Rs.1,31,252.As of FY23,major states having a per capita SDP below national average include Andhra Pradesh,Rajasthan,Madhya Pradesh,and Uttar Pradesh growing y-o-y by 4.05%,6.83%,5.34%,and 8.22%,respectively.Bihar is the poorest performing state with a per capita

85、 SDP of Rs.29,909.It has consistently been the performing the poorest since FY18 growing only at a CAGR of 2.3%from FY18 to FY23.Table 3:Per Capita SDP for Key States(at constant prices,in Rs.)StateUT FY18 FY19 FY20 FY21 FY22 FY23 Andhra Pradesh 1,03,177 1,08,853 1,10,587 1,10,971 1,21,762 1,26,690

86、Bihar 26,719 29,092 29,798 26,839 27,674 29,909 Gujarat 1,43,604 1,54,887 1,64,060 1,56,285 1,70,519 1,81,963 Karnataka 1,40,747 1,49,024 1,56,478 1,49,673 1,63,732 1,75,895 Madhya Pradesh 54,824 59,005 60,452 56,086 60,166 63,379 Maharashtra 1,37,808 1,40,782 1,45,626 1,27,550 1,40,718 1,53,664 Raj

87、asthan 73,529 73,975 76,840 73,447 79,507 84,935 Tamil Nadu 1,33,029 1,41,844 1,44,845 1,43,482 1,54,269 1,66,590 Uttar Pradesh 41,771 42,333 43,061 39,866 44,178 47,808 Delhi 2,52,960 2,57,597 2,60,559 2,28,162 2,44,024 2,58,941 Source:MOSPI 12 Industry Research Report on Indian Gems and Jewellery

88、Sector 1.6 Consumer Price Index Indias consumer price index(CPI),which tracks retail price inflation,stood at an average of 5.5%in FY22 which was within RBIs targeted tolerance band of 6%.However,consumer inflation started to upswing from October 2021 onwards and reached a tolerance level of 6%in Ja

89、nuary 2022.Following this,CPI reached 6.9%in March 2022.CPI remained elevated at an average of 6.7%in FY23,above the RBIs tolerance level.However,there was some respite toward the end of the fiscal wherein the retail inflation stood at 5.7%in March 2023,tracing back to the RBIs tolerance band.Apart

90、from a favorable base effect,the relief in retail inflation came from a moderation in food inflation.In FY24,the CPI moderated for two consecutive months to 4.7%in April 2023 and 4.3%in May 2023.This trend snapped in June 2023 with CPI rising to 4.9%.In July 2023,the CPI had reached its highest poin

91、t at 7.4%,this was largely due to increase in food prices.The notable surge in vegetable prices and in other food categories such as cereals,pulses,spices,and milk have driven this increase.In August 2023,the food inflation witnessed some moderation owing to governments active intervention.This was

92、further moderated for second consecutive month in September 2023 to 5%,led by a sharp correction in vegetables prices and lower LPG prices.Helped by deflation in the fuel and light category,the retail inflation in October 2023 softened at 4.9%.This trend reversed in November 2023 due to spike in cer

93、tain vegetable prices as well as sticky inflation in non-perishable food items such as cereals,pulses and spices and the CPI rose to 5.6%.In the month of December 2023,elevated food prices and an unfavourable base drove headline inflation to a four-month peak of 5.7%.However in the month of January

94、and February,food prices softened and the inflation was reported at 5.1%for both the months.March witnessed furthur softning of prices registering 4.9%growth.For FY24 inflation moderated to 5.4%which are within the boundaries set of 2%to 6%by the RBI.High inflation in specific food items poses infla

95、tion risk,even though an improvement in south-west monsoon and progress in sowing are improving the food inflation outlook.This makes it crucial to monitor monsoon distribution.Additionally,global food prices also show some softening in July,post increases in March 2024.While government initiatives

96、are expected to mitigate upward price pressure,external risks from geopolitical tensions may affect supply chains and commodity prices.The numbers for April 2024-August 2024 show a decline in inflation growth y-o-y to 4.4%as compared to inflation growth y-o-y of 5.6%in April 2023-July 2023 period.Fo

97、r August 2024,CPI inflation stood at 3.7%which has been the second lowest retail inflation in the last 5 years.There was a decline in inflation observed among the subgroups spices,meat and fish,and pulses and products.Additionally,food inflation was also at the second lowest in this month since June

98、 2023.13 Industry Research Report on Indian Gems and Jewellery Sector Chart 4:Retail Price Inflation in terms of index and Y-o-Y Growth in%(Base:2011-12=100)Source:MOSPI The CPI is primarily factored in by RBI while preparing their bi-monthly monetory policy.At the bi-monthly meeting held in August

99、2024,RBI projected inflation at 4.5%for FY25 with inflation during Q2FY25 at 4.4%,Q3FY25 at 4.7%,Q4FY25 at 4.3%,and Q1FY26 at 4.4%.Considering the current inflation situation,RBI has kept the repo rate unchanged at 6.5%again in the August 2024 meeting of the Monetary Policy Committee.Further,the cen

100、tral bank continued to remain focused on the withdrawal of its accommodative stance.While headline inflation has started easing due to softening in core component and economic activity has been resilient supported by domestic and investment demand,volatility in food prices due to adverse weather con

101、ditions pose a risk to the path of disinflation.Given the uncertainities in food prices that might derail the path to bring down inflation,the Central Bank has decided to be vigilant and maintain an active disinflationary stance to ensure complete transmission of past rate cuts and anchoring of infl

102、ation expectations until a better alignment of the headline CPI inflation with the target is achieved,while supporting growth.1.7 Trend in Household Savings Household savings in India(includes gross financial savings plus saving in the form of physical assets,gold and silver ornaments adjusted for l

103、iabilities)have grown steadily since FY18 at a CAGR of 8.5%,except for a marginal decline in FY20 due to the pandemic.For FY23,the household savings stands at Rs.49,632.14 billion growing y-o-y at 4.7%.The major contributors to this positive growth are savings in the form of physical assets(like rea

104、l estate,etc.)and savings in form of gold and silver ornaments,both growing y-o-y by 17.4%and 39%respectively.As of FY23,savings in physical assets and savings in form of gold&silver ornaments stood at Rs.34,834 billion and Rs.634 billion respectively,both reaching highest level since last 6 years.T

105、hese numbers hint at a shift in peoples preferences from monetary to physical assets as value appreciation in monetary assets is slow in high inflation environment as compared to physical assets.Savings in physical assets has been fueled by heavy borrowing specially in housing,auto and personal loan

106、 segments.The financial liabilities of households reached a six-year high at Rs.15,571 billion registering a y-o-y growth of 73.2%.Moreover,increase in house buying post pandemic,improvement in bank balance sheets along with ease in credit availability due to entry of new players like NBFCs and Fint

107、echs and technology advancement further pushed this growth in credit.110.0112.2118.9124.7130.3135.0139.6146.3155.3163.8174.7184.1182.1190.12.0%5.9%4.9%4.5%3.6%3.4%4.8%6.2%5.5%6.7%5.4%5.6%4.4%FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24Apr23-Aug23Apr24-Aug24Y-o-Y growth in%Retail price index(numb

108、er)Index numberY-o-Y growth in%14 Industry Research Report on Indian Gems and Jewellery Sector Additionally,in gross financial savings,a shift from traditional saving avenues to mutual funds and insurance funds could also be observed.In FY23,savings in mutual funds has grown y-o-y at 11.5%while savi

109、ngs in life insurance funds grew by 13.6%y-o-y.Further,shift in investment avenues can be observed,with increased participation in equity and other capital market instruments since they give higher returns than bank deposits.Chart 5:Household Savings(at Current Prices)Source:MOSPI 1.8 Rural and Urba

110、n Consumption The rural food consumption has decreased from 59.4%in CY00 to 47.5%in CY23.Urban food consumption also shows a similar trend from 48.1%in CY00 falling to 38.7%in CY23.From CY00 to CY23,India has seen a clear shift in consumption patterns,with food expenditure decreasing and non-food ex

111、penditure increasing.This shift highlights a transition from a primarily agrarian economy to a more diversified rural economy where spending on non-food goods and services(education,healthcare,housing,transportation,etc.)is becoming increasingly important.As urban-rural incomes rise,rural households

112、 can spend more on lifestyle,education,and health,signifying greater economic development and evolving consumption habits.Chart 6:Trend in rural consumption composition(in%)Source:MOSPI 32,966 38,446 38,452 45,056 47,423 49,632 -10,000 20,000 30,000 40,000 50,000 60,000FY18FY19FY20FY21FY22In Rd Bill

113、ion59.4%53.1%57.0%52.9%47.5%40.6%46.9%43.0%47.1%52.5%0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%CY00CY05CY10CY12CY23Rural foodRural non-food 15 Industry Research Report on Indian Gems and Jewellery Sector Chart 7:Trend in Urban Consumption Source:MOSPI 1.9 Household Spending patterns In the past five ye

114、ars,Indian households have experienced a notable shift in spending patterns,transitioning from essential expenditures to a greater focus on discretionary spending.The share of expenditure on discretionary items has increased from 53.6%in FY19 to 54%in FY23,whereas share of expenditure on essential i

115、tems has decreased from 46.4%in FY19 to 46%in FY23.The only exception to the trend can be observed in FY21 when essential spending share saw an uptick to 49.1%on account of pandemic.Households are allocating a high portion of their budgets to non-food,reflecting a growing disposable income.Consequen

116、tly,spending on non-food items such as clothing,entertainment,transportation,and health has risen sharply.This trend highlights an evolving consumer mindset,where families prioritize experiences and lifestyle enhancements over necessities,showcasing a shift towards a more affluent and diverse consum

117、ption culture.Chart 8:Shifting Patterns in Household Consumption Expenditure Source:MOSPI 48.1%40.5%44.4%42.6%39.7%51.9%59.5%55.6%57.4%60.3%0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%CY00CY05CY10CY12CY23Urban foodUrban non-food53.6%54.0%50.9%52.3%54.0%46.4%46.0%49.1%47.7%46.0%0%10%20%30%40%50%60%70%80%9

118、0%100%FY19FY20FY21FY22FY23Discretionary spendingEssential spending 16 Industry Research Report on Indian Gems and Jewellery Sector Note:Essential Spending includes Food and non-alcoholic beverages,Clothing and footwear,Housing,water,electricity,gas,and other fuels Discretionary Spending includes Alc

119、oholic beverages,tobacco and narcotics,Clothing and footwear,Furnishing,household equipment and routine household maintenance,Health,Transport,Communication,Recreation and culture,Education,Restaurants and hotels,and Miscellaneous goods and services 1.10 Trend in Gross Savings(as%of GDP)Gross Saving

120、s as a percentage of GDP has seen flat growth,moving within a narrow range.Within the last five years,it was highest in FY19 at 31.7%.It declined to less than 30%during FY20 and FY21 on account of the pandemic,increasing again to 31.2%in FY22 before declining to 30.2%in FY23.As of FY23,Savings were

121、Rs.81,500 billion indicating a y-o-y growth of 10.7%while GDP was at Rs.2,69,497 billion showing a growth of 14.2%.Chart 9:Gross Savings(as%of GDP)(at current prices)Source:MOSPI 1.11 Trend in Indias Merchandise Exports Indias merchandise exports have been growing at a CAGR of 5.8%for the last six y

122、ears.After a decline in merchandise exports in FY20 and FY21 due to the pandemic,merchandise exports picked up again in FY22 reaching USD 422 billion indicating a y-o-y growth of 44.6%.This surge can be attributed to pent-up demand from the major waves of the COVID-19 pandemic and the expansionary m

123、onetary policies implemented by developed nations in response to the pandemics effects.This merchandise export growth was primarily fueled by increased demand for products such as petroleum,cotton yarn,textiles,chemicals,and engineering goods.In FY23,exports grew only by 6.9%y-o-y reaching USD 451.0

124、7 billion.In FY24,the merchandise exports fell to USD 437.11 billion registering a decline of 3.1%y-o-y.This can be attributed to various global events such as the Houthi attacks on ships in the Red Sea causing increased freight costs and disrupted supply chains,consistently high crude oil prices du

125、e to the ongoing Russia-Ukraine conflict,and US-China trade tensions resulting in more costly value chains.The primary contributors to merchandise export growth in 2023-24 were electronic goods,pharmaceuticals,engineering goods,iron ore,cotton yarn,fabrics,and made-ups,as well as handloom products,a

126、nd ceramic and glassware items.31.7%29.6%29.1%31.2%30.2%0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%100.0%FY19FY20FY21FY22FY23 17 Industry Research Report on Indian Gems and Jewellery Sector Chart 10:Indias Merchandise Exports Source:MOSPI 1.12 Trend in Private Consumption Private Final Consump

127、tion Expenditure(PFCE)is the largest component in the Gross Domestic Product of the country.It has held a share of above 60%for the past five years.Within the last five years,it reached the highest share of 61.1%in FY21,post which it has been progressively declining albeit marginally.This trend is a

128、ttributed to a combination of factors impacting consumer spending.The pandemic,high global and domestic inflation,and tighter financial conditions have constrained private consumption.Poor agricultural output has particularly hurt rural demand,while the shift in household budgets towards higher heal

129、th expenditures,at the expense of education,has further strained consumer finances.Increased health spending has added financial burdens,limiting spending on other essential items like food,clothing,and housing,which has been evident in the decreasing PFCE growth in these categories.Additionally,wea

130、k urban demand,driven by ongoing employment challenges,has exacerbated the situation.Although the anticipated revival of monsoon conditions may boost rural demand in the current fiscal year,the overall decline in PFCE highlights persistent issues in both rural and urban consumption patterns.As of FY

131、24,the share of PFCE in GDP stands at 60.3%.In Q1FY25,PFCE improved y-o-y by 12.4%,reaching a share of 60.4%as compared to 58.9%in Q1FY24.Chart 11:Private Consumption(as%of GDP)(at current prices)Source:MOSPI 330.08313.36291.81422.00451.07437.110.0050.00100.00150.00200.00250.00300.00350.00400.00450.

132、00500.00FY19FY20FY21FY22FY23FY24In USD Billion60.9%61.1%61.0%60.9%60.3%58.9%60.4%0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%100.0%FY20FY21FY22FY23FY24Q1FY24Q1FY25 18 Industry Research Report on Indian Gems and Jewellery Sector 1.13 Growth of the middle class in India and the rural economy in I

133、ndia Indias rural economy is becoming a significant driver of the Fast-Moving Consumer Goods(FMCG)sectors resurgence,signalling a promising turnaround in aggregate demand after a slow start to the 2024-25 financial year.The Reserve Bank of India(RBI)highlights that rising incomes and improved infras

134、tructure are fueling increased rural consumption of FMCG products.This boost is supported by a rise in rural savings,marked by growing numbers of savings bank accounts and balances,and a reduction in inflationary pressures,which has allowed rural consumption to catch up with urban areas.Additionally

135、,favourable monsoon conditions and improved sowing data are expected to sustain this growth,complemented by increased government spending on rural development and infrastructure.The expansion of middle-income households in rural India is transforming the countrys economic landscape.This growth is dr

136、iven by rising incomes,increased discretionary spending,a shift towards online and omnichannel shopping,and advancements in payment and logistics infrastructure.There is also a notable dietary shift in rural areas from carb-based foods to more protein-rich diets.Indias middle class,characterized by

137、significant income variability,exhibits diverse spending patterns.Lower-middle-class households allocate much of their income to private healthcare,education,and essential consumer goods,such as motorbikes and basic appliances.In contrast,the upper-middle class invests in luxury items,entertainment,

138、property,and personal services,with a higher propensity to own assets like cars,computers,and air conditioners.Both segments of the middle class are substantial and emerging as key drivers of consumption and economic growth in India.Recent policies,including the Mahatma Gandhi National Rural Employm

139、ent Guarantee Act,have increased rural incomes,enabling more rural households to enter the middle class.The growing,more inclusive,and politically engaged middle class reflects broader economic growth,although there is a risk of social strain if growth falters and quality job creation does not keep

140、pace.Improvements in agriculture and rural spending are emerging as bright spots in demand conditions.The governments Budget measures,which focus on agriculture,infrastructure,and rural development,aim to increase incomes and revitalize the rural sector.These measures include transforming agricultur

141、al research,introducing new crop varieties,promoting natural farming,and enhancing digital infrastructure for agriculture.Successful implementation of these programs,coupled with proper fund allocation,is crucial for improving farm incomes and strengthening supply chains.A shift towards diversified,

142、high-value agricultural production,along with marketing and trade reforms,is needed to foster more inclusive,environmentally friendly,and climate-resilient agriculture.Despite higher absolute incomes among the wealthy,the sheer size of Indias middle class indicates it will become a major force in th

143、e economy,creating one of the worlds largest markets.This burgeoning middle class,with its growing discretionary spending power,is poised to drive investment,generate employment,and spur further economic growth.Assuming effective reforms are implemented,and the middle class expands to over one billi

144、on people,its role will be pivotal in Indias economic and social fabric,influencing a wide range of activities from consumption to employment and political change.1.14 Increasing Womens participation in the Workforce The labour force participation rate(LFPR)is the proportion of individuals who are a

145、ctively engaged in the labour force relative to the total population.The female LFPR has been on a steady upward trajectory since 2017-18 with significant structural shifts.Older women with lower education levels are leaving the workforce,while younger women with higher educational attainment are en

146、tering it,leading to a rise in the number of women in salaried positions and a decline in informal wage work.The proportion of women working in agriculture is decreasing,with more women moving into the services sector.This overall increase in female participation is largely driven by rural women joi

147、ning the workforce,supported by government initiatives aimed at womens empowerment through education,skill development,entrepreneurship,and workplace safety.These policies have particularly benefited women from upper expenditure classes,who have seen a more significant rise in labour force participa

148、tion,largely due to an increase in self-employment.19 Industry Research Report on Indian Gems and Jewellery Sector Between 2017-18 and 2019-20,the growth in womens participation was marked by an increase in helpers in household enterprises,but from 2019-20 to 2022-23,the rise was mainly due to more

149、women becoming own-account workers.This shift is partly attributed to the return of male migrants during the pandemic,which led women to take up their own-farm or other non-farm activities to support household income.This trend of increasing self-employment among women spans various sectors,includin

150、g agriculture,manufacturing,and services,reflecting a broader shift in the labour market dynamics for women.For 2022-23,the female LFPR was 37%,underscoring the increasing participation of women in the workforce.The increase in female LFPR from 37%in 2022-23 to 41.7%in 2023-24 can also be attributed

151、 to the increase in self-employment among women.Chart 12:Womens Labor Force participation rates Note:2023-24 refers to the period July 2023-June 2024 and likewise for previous years;LFPR is for the usual status Source:PLFS 1.15 Trends in Population Growth Gender wise From the period CY19 to CY23,the

152、 female population as a percentage of the total population has risen marginally from 48.35%in CY19 to 48.42%in CY23,while the male population share has declined slightly from 51.65%in CY19 to 51.58%in CY23.Chart 13:Gender-wise breakup of the population Source:World Bank Database 23.3%24.5%30.0%32.5%

153、32.8%37.0%41.7%20%25%30%35%40%45%50%2017-182018-192019-202020-212021-222022-232023-2415 years and above48.35%48.37%48.39%48.41%48.42%51.65%51.63%51.61%51.59%51.58%0%10%20%30%40%50%60%70%80%90%100%CY19CY20CY21CY22CY23Female(%of total population population)Male(%of total population population)20 Indus

154、try Research Report on Indian Gems and Jewellery Sector Age Wise Population constituting 15-64 aged people constitute the majority share of the total population increasing from 66.39%in CY19 to 68.03%in CY23,reflecting the burgeoning youth populace in the country.The share of people aged 65 and abov

155、e has only marginally increased from 6.47%in CY19 to 7.07%in CY23 while the share of people less than 14 years of age has declined from 26.59%in CY19 to 24.9%in CY23,reflecting a decline fertility rate in the country.Chart 14:Age-wise Breakup of the Population Source:World Bank Database Urbanization

156、 The urban population is significantly growing in India.The urban population in India is estimated to have increased from 476.8 million(34.5%of total population)in CY19 to 519.5 million(36.4%of total population)in the year CY23.People living in Tier-2 and Tier-3 cities have greater purchasing power.

157、Chart 15:Urbanization Trend in India Source:World Bank Database Dependency Ratio Age Dependency Ratio is the ratio of dependents to the working age population,i.e.,15 to 64 years,wherein dependents are population younger than 15 and older than 64.This ratio has been on a declining trend.It was as 26

158、.59%26.11%25.69%25.31%24.90%66.93%67.22%67.51%67.80%68.03%6.47%6.67%6.80%6.90%7.07%0%10%20%30%40%50%60%70%80%90%100%CY19CY20CY21CY22CY23Ages 0-14(%of total population)Ages 15-64(%of total population)Ages 65 and above(%of total population)34.5%34.9%35.4%35.9%36.4%CY19CY20CY21CY22CY23Urban population(

159、%of total population)21 Industry Research Report on Indian Gems and Jewellery Sector high as 76%in 1983,which has reduced to 47%in 2023.Declining dependency means the country has an improving share of the working-age population generating income,which is a good sign for the economy.Chart 16:Dependen

160、cy Ratio trend in India Source:World Bank Database 1.16 Key growth/demographic drivers for economic growth Innovation,Capital Investment,and Demographic Advantage:Indias progress in innovation and technology along with enhanced worker productivity are crucial drivers of future growth.Additionally,th

161、e countrys favourable demographics,characterized by a large and youthful population,will further bolster its growth prospects.Increasing savings rates,driven by rising incomes and financial sector development,are likely to boost the availability of capital for investment.The Indian governments recen

162、t efforts in facilitating investment have created a conducive environment for private-sector capital expenditure.As the private sector steps up,supported by healthy balance sheets of corporations and banks,capital investment will be a significant growth driver.Additionally,addressing the challenge o

163、f labour force participation by creating opportunities and investing in training and upskilling will be vital to harnessing demographic advantages and ensuring sustainable economic progress.Global Offshoring and Manufacturing Hub:Indias position as a key player in global offshoring is gaining renewe

164、d momentum.Traditionally known for outsourcing services like software development and customer service,India is now expanding its role as a critical back office to the world.The rise of distributed work models and tighter global labour markets are reinforcing this trend.Beyond services,India is pois

165、ed to become a major manufacturing hub.Corporate tax cuts,investment incentives,and significant infrastructure investments are driving capital inflows into manufacturing.This dual role of service outsourcing and manufacturing is expected to create a robust foundation for long-term economic growth,pr

166、oviding India with diverse revenue streams and strengthening its global economic position.Some recent such investments include:49.40%48.78%48.13%47.50%47.00%46%46%47%47%48%48%49%49%50%50%CY19CY20CY21CY22CY23Age dependency ratio(%of working-age population)22 Industry Research Report on Indian Gems an

167、d Jewellery Sector Table 4:Investments by Corporates Event Month State Value(in Rs.Million)Purpose/Project/Announcement Vibrant Gujarat Global Summit January 2024 Gujarat NA Lakshmi Mittal,Chairman of ArcelorMittal,announced the completion of the first phase of the Hazira Expansion Project by 2026.V

168、ibrant Gujarat Global Summit January 2024 Gujarat NA Toshihiro Suzuki,President of Suzuki Motor Corporation,highlighted plans to launch the first electric vehicle produced in India while expanding production capacity and reducing greenhouse emissions through sustainable practices.Vibrant Gujarat Glo

169、bal Summit January 2024 Gujarat NA Mukesh Ambani of Reliance Group announced a 5000-acre Dhirubhai Energy Giga Complex in Jamnagar,to be commissioned by the second half of 2024.Regional Industry Conclave July 2024 Jabalpur 15,300 Madhya Pradeshs regional industry conclave attracted significant inter

170、est,leading to the virtual inauguration of 67 industrial units,projected to create 4,342 jobs.Chief Minister MK Stalins visit to the USA August-September 2024 Tamil Nadu 76,180 The 14-day overseas trip resulted in 19 Memoranda of Understanding involving eight companies from San Francisco and 11 from

171、 Chicago.These agreements are expected to create employment for 11,516 people across several cities in the state,including Madurai,Tiruchirappalli,and Chennai.Source:Industry Sources Surge in Consumer Spending:Indias consumer market is on the cusp of a substantial transformation.With expectations of

172、 increased disposable income,the countrys consumption patterns are set to shift dramatically.The anticipated rise in disposable income and consumption will stimulate demand across various sectors,driving economic activity and fuelling the growth of retail and service industries.As income distributio

173、n becomes more equitable,consumer spending will play a pivotal role in bolstering economic growth.23 Industry Research Report on Indian Gems and Jewellery Sector Advancements in Energy Access and Transition:Energy development is critical for Indias economic advancement.While India will continue to r

174、ely on fossil fuels,the shift towards renewable energy sourcessuch as biogas,ethanol,hydrogen,wind,solar,and hydroelectric powerwill be substantial.This transition is expected to reduce dependence on imported energy and improve living conditions,addressing pollution issues in some of the worlds most

175、 affected cities.The burgeoning demand for electric solutions,including electric vehicles and green hydrogen-powered transportation,aligns with global sustainability trends and will support long-term growth.1.17 Key structural reforms announced by the government of India AtmaNirbhar Bharat Policy In

176、itiated on May 13,2020,by the Prime Minister,the Atmanirbhar Bharat Abhiyan(Self-Reliant India Campaign)aims to enhance Indias self-reliance and economic resilience,particularly in response to the COVID-19 pandemic.The campaign is supported by a comprehensive economic package of INR 20000 billion,eq

177、uivalent to 10%of Indias GDP,designed to stimulate the economy and support various sectors during the pandemic.The strategy is built on five pillars Economy(Focus on boosting economic growth and strengthening the economic structure),Infrastructure(Development of modern infrastructure to support econ

178、omic activities and growth),Systems(Enhancing and streamlining systems for better efficiency and governance),Vibrant Demography(Leveraging the demographic dividend by improving employment opportunities and skills),and Demand(Stimulating consumer demand and fostering a robust market)Under the Abhiyan

179、,several reforms and enablers have been introduced across seven key sectors,including:o Supply Chain Reforms for Agriculture:To improve efficiency and reduce bottlenecks.o Rational Tax Systems:Simplification of tax laws to enhance compliance and ease of doing business.o Simple&Clear Laws:Streamlinin

180、g legal processes to foster a conducive business environment.o Capable Human Resource:Investment in skill development and human resource capabilities.o Strong Financial System:Strengthening financial institutions and systems to support economic activities.The Atmanirbhar Bharat Abhiyan reflects a vi

181、sion for a more self-reliant and resilient India,focusing on enhancing domestic capabilities and reducing dependency on external factors.Production Linked Incentive(PLI)Scheme Launched in March 2020,the PLI scheme aims to enhance domestic manufacturing capabilities,increase import substitution,and g

182、enerate employment.It seeks to attract investments,boost production,and make Indian manufacturers globally competitive.The scheme includes an ambitious outlay of Rs.1,970 billion(over US$26 billion)to support 14 key sectors.The 14 key sectors covered are Mobile Manufacturing and Specified Electronic

183、 Components,Critical Key Starting Materials,Drug Intermediaries,and Active Pharmaceutical Ingredients,Manufacturing of Medical Devices,Automobiles and Auto Components,Pharmaceuticals Drugs,Specialty Steel,Telecom&Networking Products,Electronic/Technology Products,White Goods(Air Conditioners and LED

184、s),Food Products,Textile Products(MMF segment and technical textiles),High-Efficiency Solar PV Modules,Advanced Chemistry Cell(ACC)Batteries,and Drones and Drone Components.All 14 sector-specific PLI schemes have been approved and notified by the relevant Ministries or Departments and are at various

185、 stages of implementation.The PLI schemes are designed to attract significant investments in cutting-edge technology,improve efficiency,and achieve economies of scale in the manufacturing sector.They are expected to significantly boost production,employment,and economic growth over the next five yea

186、rs.24 Industry Research Report on Indian Gems and Jewellery Sector Make in India The Make in India initiative,launched in 2014,focuses on positioning India as a global manufacturing and entrepreneurial hub,transforming the business environment across various sectors.Its goal is to enhance the countr

187、ys industrial capabilities and foster a culture of innovation and investment.It aims to reshape the relationship between the government and industry.Moving from a regulatory role to that of a facilitator,the government aims to partner with businesses to drive economic development.This shift is suppo

188、rted by recent policies like the Production Linked Incentive(PLI)scheme and Free Trade Agreements(FTAs),which address challenges such as high logistics costs and export competitiveness.The initiative has identified 25 key sectors for development,including manufacturing,infrastructure,and services.Fo

189、reign Direct Investment(FDI)has been significantly opened up in areas like Defence Production,Construction,and Railway infrastructure,reflecting a strategic effort to boost industrial growth and attract global investment.It focuses on enhancing the ease of doing business by streamlining regulations,

190、reducing licensing requirements,and introducing digital platforms for faster approvals.Concurrently,significant investments are being made in modern infrastructure,including the creation of industrial corridors and smart cities with advanced technology and high-speed communication.Upgrades to existi

191、ng infrastructure are also in progress to improve logistics and support innovation and industrial growth.Goods and Services Tax The Goods and Services Tax(GST)was introduced in India on July 1,2017,to simplify Indias tax system by replacing a complex system of Central and State taxes with a unified

192、tax regime.It categorizes goods and services into different tax slabs(5%,12%,18%,and 28%)and exempts certain essentials.Special provisions like lower rates for gold and job work for diamonds,as well as a compensation cess on luxury and demerit goods,were also included.The manufacturing sector has se

193、en significant advantages from GSTs unified tax regime.By eliminating cascading taxes and introducing the Input Tax Credit(ITC)mechanism,production costs have been reduced.This shift has enhanced efficiency and competitiveness for manufacturers.The GST system has had varied effects on the services s

194、ector.While higher tax rates on services such as telecommunications and banking have increased consumer spending,lower rates have boosted demand in sectors like hospitality and airlines.The simplified tax structure has improved operational efficiency in the hospitality industry.GST has positively im

195、pacted Indian exports by removing the cascading effect of multiple taxes,reducing production costs,and enhancing competitiveness in the global market.The ability to claim input tax refunds has improved exporters working capital management and cash flow,making compliance easier and more cost-effectiv

196、e.1.18 Concluding Remarks The major headwinds to global economic growth are escalating geopolitical tensions,volatile global commodity prices,high interest rates,inflation woes,volatility in international financial markets,climate change,rising public debt,and new technologies.Despite the global eco

197、nomic growth uncertainties,the Indian economy is relatively better placed in terms of GDP growth compared to other emerging economies.According to IMFs forecast,it is expected to be 7%in CY24 compared to the world GDP growth projection of 3.2%.The bright spots for the economy are continued healthy d

198、omestic demand,support from the government towards capital expenditure,moderating inflation,investments in technology and improving business confidence.25 Industry Research Report on Indian Gems and Jewellery Sector Likewise,several high-frequency growth indicators including the purchasing managers

199、index,E-way bills,bank credit,toll collections and GST collections have shown improvement in FY24.Moreover,normalizing the employment situation after the opening up of the economy is expected to improve and provide support to consumption expenditure.At the same time,public investment is expected to

200、exhibit healthy growth as the government has allocated a strong capital expenditure of about Rs.11,110 billion for FY25.The private sectors intent to invest is also showing improvement as per the data announced on new project investments and resilience shown by the import of capital goods.Additional

201、ly,improvement in rural demand owing to healthy sowing,improving reservoir levels,and progress in the south-west monsoon along with the governments thrust on capex and other policy support will aid the investment cycle in gaining further traction.26 Industry Research Report on Indian Gems and Jewell

202、ery Sector 2 Indian Retail Consumer Basket 2.1 Overview The Indian retail sector is one of the fastest-growing sectors.It has the largest consumer base,and as a result,the industrys market size has been increasing significantly.Further,robust demand,increasing investments,innovations,and government

203、initiatives fuelled Indias retail growth.As digitization widens the market,better access channels,faster customer acquisition leading to cash conversion,and rapid shifts in both demand&supply factors will accelerate the momentum of retail expansion in India.Figure 1:Indian Retail Sector Composition

204、Source:CareEdge Research The Indian retail industry consists of organized and unorganized segments.Currently,the unorganized sector dominates the retail industry and organized retail sector penetration in India is much lower compared to the developed countries.This also implies that the organized re

205、tail segment has huge growth potential.The continued expansion of the organized retail segment may aid the growth of the overall retail sector.The outbreak of COVID-19 led to an acceleration in online sales of consumer products due to consumer behaviour changes.Consumers avoided physical store visit

206、s due to fears of virus contraction.Industry participants consequently witnessed a transition from traditional to digital and are now moving towards an omni-channel mode of commerce.In some ways,the pandemic has aided in the transformation of retail into a more digitally enabled environment.2.2 Indi

207、an Retail Market In the 1990s,metro cities saw the growth of pure-play modern retail,which was once controlled by traditional retail.Consumer preferences began to move from need-based to premium purchasing,and the first hints of modernization in operations(backend)and formalization of the value chai

208、n emerged.Furthermore,the introduction of hypermarkets,super-marts,large format stores and exclusive jewellery outlets in tier 1 cities further drove the evolution of retail.Consumers primary concern shifted from quality shopping experiences to convenience.The jewellery sector adapted by providing i

209、n-store experiences with personalized services and loyalty programs.Meanwhile,technology began to play a crucial role in operations,as retailers launched websites to offer product details and allowed consumers to browse collections online before visiting stores.Online retail grew rapidly as retailer

210、s realized they needed to adopt digital technology to stay relevant to the increasing number of online shoppers.Online retail in gold and jewellery also expanded rapidly,as consumers became more 27 Industry Research Report on Indian Gems and Jewellery Sector inclined toward digital shopping.Personal

211、ized recommendations and virtual try-on tools became vital for retailers to cater to the discerning jewellery customer.Modern retail is still in its early stages of growth in emerging markets.Micro-retailers,kiosks,hawkers,open market vendors,wholesalers,and distributors make up traditional retail.T

212、raditional retail is based on interpersonal relationships between customers and merchants.It is dominated by an unorganized segment of the retail channels.While modern retail in gold and jewellery continues to grow,the unorganized sectorcomprising micro-jewelers,local goldsmiths,and market vendorsst

213、ill holds a substantial share.This traditional segment thrives on long-standing relationships between customers and merchants.However,modern retail players,such as national jewellery chains and high-end stores,provide a more structured shopping experience.Inventory management,logistics,and merchandi

214、sing in modern jewellery outlets are organized and data-driven,which distinguishes them from the unorganized sector.Chart 17:Indian Retail Market Size,by Value(FY21-FY28P)Source:IBEF,CareEdge Research In FY23,the Indian retail market reached Rs.83.47 trillion,showing a strong recovery from the previ

215、ous years,driven by improved consumer demand and a resurgence in offline retail channels.By FY24,the market has reached Rs.94.62 trillion,with steady growth expected to continue.The outlook remains optimistic,with the sector anticipated to reach Rs.164.93 trillion by FY28.This expansion is largely f

216、uelled by rising disposable incomes,increased penetration of organized retail,and growing e-commerce adoption.The retail sector is poised to play a crucial role in Indias economic growth,with significant employment generation.By CY2030,it is expected to create 25 million new jobs,underscoring its im

217、portance in the countrys socio-economic landscape.Furthermore,the sector is likely to continue to grow leading to an increase in footfalls,which will support the sales growth going forward.The revenue has reached pre-COVID levels mainly driven by the strong show in lifestyle brands,new category laun

218、ches,and store additions amongst various players.Furthermore,the demand is expected to increase due to consumer preference for non-discretionary spending.For the coming years,the market size is estimated to grow to nearly Rs.107 trillion by FY25 and around Rs.164 trillion in FY28 on account of chang

219、ing lifestyle and demand-supply drivers like increasing purchasing power,innovative financing through easy credit,growing entry of foreign retailers,and continuous government support through FDI policies and PLI schemes.2.3 Demand Drivers for the Indian Retail Market Increasing Purchasing Power The

220、rising disposable income,which has grown at a CAGR of 8.88%between the period FY14 to FY24,is expected to lead to increased demand for residential real estate in India as more and more people are able to afford real estate 56.2662.983.4794.62107.73123.34142.06164.93FY21FY22FY23FY24FY25PFY26PFY27PFY2

221、8PRs.In Trillion 28 Industry Research Report on Indian Gems and Jewellery Sector purchases.This will lead to more consumption of steel in the country and help the steel manufacturers to produce more steel,thus improving the demand in the steel industry.Chart 18:Net Disposable Income for Past Source:

222、CMIE,CareEdge Research Innovative Financing Modes To keep up with the changing market dynamics,innovative financing modes have been introduced to meet the financial needs of retailers,such as Merchant Cash Advances(MCA).It is a type of financing that allows retailers to receive cash advances based o

223、n their future credit and debit card sales.Whereas invoice financing is a type of financing where retailers can get upfront cash by selling their unpaid invoices to a financial institution.The collective efforts of financial institutions and banks with retailers are enabling retailers to fund their

224、inventory and grow their businesses.Continuous Government Support The government has implemented several policies and initiatives to create a favourable business environment for retailers and promote the growth of the sector.Some of the ways in which the Indian government is supporting the retail ma

225、rket are given below:1)FDI policy:The government has liberalized the FDI policy in the retail sector to attract foreign investment.In 2012,the government allowed 100%FDI in single-brand retail and 51%FDI in multi-brand retail.The government has also allowed FDI in e-commerce companies,which has help

226、ed the growth of online retail in the country.2)GST Implementation:The implementation of the Goods and Services Tax(GST)has simplified the tax structure.It has helped streamline the supply chain and reduce the compliance costs for retailers.3)Pradhan Mantri Mudra Yojana(PMMY):The PMMY scheme was lau

227、nched in 2015 to provide collateral-free loans to small businesses,including retailers,to help them expand their business operations.Approx.370 million people have benefitted in the last 9 years.4)National Retail Policy:In 2013,the government introduced the National Retail Policy to create a conduci

228、ve environment for the growth of the countrys retail sector.The policy is focused on promoting small retailers,improving supply chain infrastructure,and encouraging e-commerce.Other initiatives include infrastructure development,skill development,start-up initiatives,etc.91,843 1,00,439 1,09,315 1,2

229、0,052 1,31,743 1,44,620 1,52,504 1,48,408 1,74,816 1,98,125 2,14,951 FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23FREFY24 PEIn INR 29 Industry Research Report on Indian Gems and Jewellery Sector 2.4 Overview of the Organized Indian Retail Market The retail sector in India is largely unorganized.However,t

230、he share of organized retail is witnessing continuous growth with about 18%contribution to the total retail market in FY21,a sizeable increase from 9%in FY17.The market size for organized retail reached Rs.8.510.5 trillion in FY21.Chart 19:Share of Organised Retail Source:Industry Sources,CareEdge R

231、esearch The expansion of the organized retail market in India is mostly attributed to the implementation of GST and shifting customer behaviour.Increased affluence,changing lifestyles,and favourable demographic patterns have all contributed to the shift in consumer behaviour.Consumers now prefer to

232、shop at a location where they can enjoy food,entertainment,and shoppingall in one spot.This has supported the growth in the Indian organized retail market.Owing to the pent-up demand,restriction-free movement,and the festive season,revenue for FY22 witnessed a significant increase surpassing the pre

233、-pandemic level.2.5 Trends in the Retail Industry by Segment FMCG-This segment includes groceries,staples,health&hygiene products,and food&grocery segments,which fall under the essential category as compared to other segments in the retail industry.Indias consumer food business has benefited from th

234、e countrys increased urbanization,increasing number of working women,improving standards of living,rising number of supermarkets&shopping malls,and growing market of online food delivery.Due to inflationary pressures during the period,sales growth in the FMCG segment has been higher than non-FMCG/di

235、scretionary segment.Going forward,an improvement in volumes is expected with stability in raw material prices and less reliance on pricing in the near-to-medium term.Hence,the margin is also expected to witness improvement.Apparel-The apparel segment,covering fashion and lifestyle products,is one of

236、 the largest categories within the retail industry.It includes clothing,footwear,and accessories across various styles and brands,catering to a wide range of consumer preferences.This segment has witnessed significant shifts in consumer behavior,particularly due to the pandemic,which spurred the ado

237、ption of online shopping and omnichannel retailing.Retailers responded by adding more stores,revamping e-commerce platforms,and integrating physical and digital channels to offer an enhanced shopping experience.Going forward,demand is expected to grow,driven by the increasing focus on affordable lux

238、ury,athleisure,and sustainability in fashion.Consumer Durables:The consumer durables category encompasses a broad range of household appliances and electronics,including refrigerators,washing machines,televisions,and air conditioners.This sector has shown 9%12%18%30%40%91%88%82%70%60%FY17FY20FY21FY2

239、5PFY30P%share in retailOrganised retailUnorganised retail 30 Industry Research Report on Indian Gems and Jewellery Sector resilience,with steady demand for both essential and seasonal products,such as air coolers and air conditioners,during summer.Government initiatives like the Production Linked In

240、centive(PLI)scheme and reductions in import duties on components are boosting local manufacturing.While challenges like inflation and foreign exchange fluctuations persist,the sector is optimistic,supported by a push for premiumization and improved sales channels,including e-commerce.Consumer Food T

241、he consumer food segment includes packaged foods,beverages,snacks,ready-to-eat meals,and staples.It caters to changing urban lifestyles,with growing demand for convenience foods and healthier alternatives.Post-pandemic,there has been a noticeable shift toward online grocery shopping and direct-to-co

242、nsumer(D2C)models,making these key growth drivers for the future.Inflationary pressures affected pricing in FY24,but with the stabilization of raw material costs,the industry is expected to see improved margins and volume growth.The focus on healthier,organic,and natural products is also reshaping c

243、onsumer preferences in this space.Household&Personal Care Products The household and personal care category covers a wide range of products,from cleaning supplies and toiletries to cosmetics and personal hygiene items.The pandemic brought a surge in demand for hygiene and sanitation products,and tha

244、t trend continues.This segment has also seen increasing consumer interest in premium and eco-friendly alternatives,with a growing market for natural and organic products.While inflationary pricing supported revenue growth in FY24,the emphasis is now on margin expansion through better raw material co

245、st management and a focus on premium product lines.Jewellery&Accessories The jewellery and accessories segment include precious metals,stones,fashion jewellery,watches,and other personal accessories.Traditionally dominated by unorganized players,this sector is undergoing formalization with the rise

246、of branded and hallmark-certified products.Festivals and weddings continue to drive significant demand,and there is a strong consumer preference for high-value,premium items.The industry is also leveraging digitalization,with e-commerce platforms playing an increasingly important role in reaching yo

247、unger,more tech-savvy customers.Growth is expected to be fuelled by expanding organized retail,government regulations promoting quality assurance,and the integration of omnichannel retailing.31 Industry Research Report on Indian Gems and Jewellery Sector Chart 20:Retail Industry in India Segmentatio

248、n Source:Netscribes(July 2024),Retail Industry in India 2024,from EMIS Professional Database,CareEdge Research 60.8%8.2%7.5%4.0%3.8%3.7%3.4%2.1%1.6%4.9%FY23Food and groceryJewelry and watchesApparel and accessoriesFurniture and furnishingPharmacyMobileConsumer durables and appliancesBeauty and perso

249、nal careFootwearOthers58.5%8.3%7.7%4.5%4.4%3.7%3.1%2.3%1.7%5.8%FY28FFood and groceryJewelry and watchesApparel and accessoriesFurniture and furnishingPharmacyMobileConsumer durables and appliancesBeauty and personal careFootwearOthers 32 Industry Research Report on Indian Gems and Jewellery Sector 3

250、 Global Gems and Jewellery Industry 3.1 Overview of the Global Gems and Jewellery Industry The global jewellery market is shaped by diverse economic trends,cultural practices,and shifting consumer preferences.The interest in gold chains and necklaces extends beyond just weddings and unique events.Pe

251、ople are increasingly wearing platinum and gold rings,delicate gold chains,bracelets,and anklets as everyday fashion accessories.These items are also commonly given as gifts for occasions like birthdays and anniversaries.This shifting consumption pattern is likely to drive market growth.Modern desig

252、ns and emerging fashion trends are drawing in customers,and manufacturers are capitalizing on these frequent changes by creating unique products to attract buyers.Coloured gemstones such as emeralds,sapphires,and opals are gaining prominence,adding vibrant touches and uniqueness to jewellery collect

253、ions.While classic earring and necklace sets remain popular,artificial jewellery is exploring new avenues,with items like hair clips,headbands,anklets,and waist chains gaining popularity as ways to showcase personal style.The global appetite for jewellery is anticipated to grow as more individuals s

254、eek luxury items.Jewellery offers various benefits,including enhancing certain body features,reflecting fashion trends and styles,and improving ones appearance or that of others.Its appeal as a status symbol among higher-income groups has accelerated its consumption.The rising demand for contemporar

255、y designs and the influx of new designers are further driving market expansion.The global gold jewellery market is likely to grow due to increasing consumer disposable income and the appeal of gold as a long-term investment.Gold is considered a haven,and most investors turn to gold during market tur

256、moil for safe investment.Between CY19 to CY23,the global jewellery market rebounded,achieving a Compound Annual Growth Rate(CAGR)of 9%.The global jewellery market size was valued between USD 235 and USD 245 billion in CY23 and is projected to reach USD 247 USD 257 billion by 2028,exhibiting a CAGR o

257、f 5%.Annually,around 3,600 tons of gold is mined globally,around 1200 tons of gold is recycled,and around 4,400 tons of gold is consumed for various purposes like,jewellery fabrication,technology,investments,etc.Around 52%of the total gold demand comes from China and India.China is the largest count

258、ry producing gold in the world,accounting for around 10%of total CY23 gold production.Africa which includes various other countries produces around 28%,whereas Asia produces 18%of total newly mined gold.Central and South America produce around 15%,North America produces around 13%,and Australia and

259、Russia produce around 8%of the total newly mined gold.33 Industry Research Report on Indian Gems and Jewellery Sector 3.1.1 Market Size and Trend of the Global Gems and Jewellery Industry Chart 21:Global Gems and Jewellery Market Size(CY19-CY29P)Source:IMARC Group,CareEdge Research In CY23,the globa

260、l gems and jewellery industry was valued at around USD 235 billion and there was a stagnant CAGR of 1%during CY19CY23.This is due to economic uncertainties,pandemic-related disruptions,and shifting consumer preferences toward essential spending.There has been a slight slowdown in CY23 compared to CY

261、22 due to the ongoing economic slowdown caused by geopolitical tensions and regional conflicts.However,the gems and jewellery market is expected to reach USD 308 billion by CY29,driven by economic recovery,rising disposable incomes in emerging economies,and increased demand for innovative and ethica

262、lly sourced jewellery options.The global gems and jewellery market is expected to experience steady growth in the coming years,fueled by emerging economies and rising disposable incomes.Although gold and diamond jewellery will continue to dominate the market,alternative materials are likely to see i

263、ncreased demand due to concerns over ethics and affordability.Additionally,the growth of e-commerce platforms and innovations in jewellery design technology are anticipated to drive significant expansion.228 195 252 246 235 243 251 264 277 292 308 -50 100 150 200 250 300 350CY19CY20CY21CY22CY23CY24P

264、CY25PCY26PCY27PCY28PCY29PIn USD billion 34 Industry Research Report on Indian Gems and Jewellery Sector 4 Indian Gems and Jewellery Industry 4.1 Overview of Indian Gems&Jewellery Industry The Indian gems and jewellery industry is a significant pillar of the national economy,contributing approximatel

265、y 7%to the countrys GDP and around 15%of total merchandise exports.The sector is expected to grow steadily,driven by domestic consumption and international demand.India holds a prominent position globally,being the largest diamond-cutting and polishing hub,producing over 90%of the worlds polished di

266、amonds.The industry comprises various segments,including gold jewellery,diamond jewellery,coloured gemstones,and studded jewellery,with gold jewellery dominating the market.Gold plays a vital cultural and religious role in India,symbolizing prosperity and wealth,and is an essential part of weddings,

267、festivals,and other ceremonies.Geographically,the manufacturing base is concentrated in key states like Maharashtra,Gujarat,and Tamil Nadu.Organized players are gaining traction as the industry undergoes formalization.Increasing consumer preference for branded jewellery,quality assurance,and contemp

268、orary designs is driving this transition.Government initiatives,such as mandatory hallmarking for gold jewellery,the Gold Monetization Scheme,and easing gold import restrictions,are bolstering the formal sector.In 2024,seven major trade fairs were organized by prominent councils such as the Gem and

269、Jewellery Export Promotion Council(GJEPC),the All India Gem and Jewellery Domestic Council and others.These events were held across cities,including Jaipur,Mumbai,Bengaluru,Coimbatore,Delhi NCR,Hyderabad,and Kolkata,showcasing the dynamic Gems and Jewellery sector in India.Serving as vital platforms

270、,these fairs promoted innovation,enhanced domestic and international trade,and fostered collaborations among industry stakeholders.Domestic demand is fueled by rising disposable incomes,urbanization,and a growing preference for lightweight,modern designs,especially among younger consumers.On the exp

271、ort front,markets like the U.S.,UAE,and Hong Kong continue to drive growth.Trade agreements and government support for export-oriented policies further strengthen Indias position in the global market.While the sector holds immense potential,it faces challenges such as gold price volatility,dependenc

272、y on imports,and increasing competition from synthetic diamonds.Fluctuations in international demand and compliance with stringent regulatory norms also pose risks.However,these hurdles are being addressed through policy interventions,innovation,and diversification.Technological advancements,while s

273、till emerging,are being explored to improve efficiency and build trust.Digital retail platforms and blockchain-based supply chain transparency tools are examples of these efforts.However,traditional factors such as Indias skilled workforce,robust manufacturing infrastructure,and a deep-rooted cultur

274、al affinity for jewellery remain the primary growth drivers.In conclusion,the Indian gems and jewellery industry continues to thrive,blending traditional strengths with evolving consumer preferences and gradual modernization.Its ability to adapt to changes while leveraging its heritage ensures its s

275、ustained growth and competitiveness on the global stage.4.2 Indian Gems&Jewellery Industry Market Size The Indian Gems and Jewellery(G&J)business has traditionally been fragmented with consumers purchasing from family jewellers.The fragmented nature of this sector makes it difficult to quantify the

276、number of jewellers in India.However,the industry has seen structural transformation in the recent decade with more G&J players moving up the value chain with a greater focus on branded jewellery.Moreover,consumers are more predisposed to branded jewellery particularly in metro&tier I cities,given t

277、he rising media and Western influences and willingness to pay a premium price.35 Industry Research Report on Indian Gems and Jewellery Sector Chart 22:Indian Gems&Jewellery Industry Market Size(CY20-CY29)Source:IMARC Group,CareEdge Research In CY23,the domestic gems and jewellery industry was valued

278、 at around Rs.6,482 billion and there was a CAGR of 28.7%during CY20CY23.Further,the gems and jewellery market are expected to grow at a CAGR of 8.6%between,CY23 and CY29.The long-term demand prospects for the sector are supported by a growing working population,higher disposable income,easier acces

279、s to credit,and improved living standards.To cater to the changing consumer preferences and design trends,larger stores are offering more variety and a diverse range of jewellery.This continuous adaptation to consumer trends and behaviour is likely to further support the shift towards the organized

280、jewellery segment.4.3 Indian gold jewellery industry market size(CY20-CY29)The Indian jewellery market is traditionally dominated by gold jewellery.Gold jewellery purchases in India are not just limited to consumption as is the case with fashion jewellery.They have a strong saving significance.This

281、is more evident in rural communities where access,literacy,and acceptance of other financial savings instruments are low.These factors have resulted in gold being a major saving asset class.Cultural differences,religious&trust concerns,and other elements that influence jewellery purchases have all c

282、ontributed to gold jewellery s significance.3,037 3,841 5,093 6,482 7,243 7,811 8,430 9,105 9,841 10,645 CY20CY21CY22CY23CY24PCY25PCY26PCY27PCY28PCY29PRs.in billion 36 Industry Research Report on Indian Gems and Jewellery Sector Chart 23:Indian Gold Jewellery Industry Market Size(CY20-CY29)Source:IM

283、ARC Group,CareEdge Research In CY23,the domestic gold jewellery industry was valued at around Rs.4,115 billion and there was a CAGR of 31.5%during CY20 and CY23.However,in CY23,the demand for gold jewellery remained subdued in terms of volume and declined by about 2%,while the gold price registered

284、a 7%increase compared to its previous year.In CY24 the Indian jewellery market is expected to grow by 13.1%y-o-y to Rs.4,653 billion.Furthermore,the market is expected to grow at a compounded annual growth rate(CAGR)of 9.7%between CY23 and CY29 to Rs 7,162 billion.In India,the surge in demand for go

285、ld jewellery can be attributed to the growing middle-class population and their increasing disposable income levels.As more individuals experience higher income levels,they are more capable of affording luxury items like gold jewellery.These growing middle-class views gold jewellery as a status symb

286、ol,a reflection of their improved lifestyle,and a worthwhile investment.The trend is especially prominent in urban areas where economic growth has enhanced financial independence and purchasing power.Chart 24:Indian Gold Jewellery Industry Breakup by Region(%Share)in CY23 Source:IMARC Group,CareEdge

287、 Research 1,808 2,333 3,167 4,115 4,653 5,064 5,516 6,013 6,559 7,162 -1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000CY20CY21CY22CY23CY24PCY25PCY26PCY27PCY28PCY29PRs.in billionNorth20%South42%East14%West24%37 Industry Research Report on Indian Gems and Jewellery Sector Jewellery preferences vary si

288、gnificantly across different age groups,reflecting the evolving interests,lifestyles,and values of Indian women.Every demographic has diverse needs and perspectives,from senior women who value traditional motifs to young brides who choose modern patterns.Furthermore,according to a report by the Worl

289、d Gold Council,recent interactions between Metals Focus and retailers have highlighted a significant increase in demand for lightweight jewellery,especially in the daily wear segment.For instance,it is now common to find chains or Mangal sutras weighing just 5-8 grams,a development that would have b

290、een unlikely five years ago.This surge in demand can be attributed to the rising per capita income,increased expenditure on jewellery,a higher number of weddings in India,and the influence of social media.These demographic shifts have significantly impacted gold jewellery purchases in recent years.R

291、egional demographics play a crucial role in influencing purchase decisions.In South India,the tradition of investing heavily in gold jewellery,is deeply ingrained,with families often prioritizing substantial,intricate designs that reflect both wealth and cultural heritage.The emphasis on gold as an

292、investment also drives higher expenditure in this region.In contrast,Maharashtra sees continuous spending on jewellery,driven by strong replacement demand.Women in this region often buy new pieces or upgrade existing ones,reflecting both cultural practices and evolving fashion trends.The states incl

293、ination towards nath(nose rings)and kamarband(waistbands)also influences the jewellery market.In North India,the preference for heavy gold jewellery remains strong,but there is a growing trend towards more versatile,lightweight designs that cater to modern lifestyles.Meanwhile,in Eastern India,espec

294、ially Bengal,traditional motifs inspired by nature dominate jewellery designs,reflecting the regions rich cultural heritage.4.4 Share of Various Segments in the Indian Gems&Jewellery Industry Key Segments of Indian Gems and Jewellery Industry:The Indian G&J industry broadly consists of gold jeweller

295、y,studded jewellery and other jewellery types like platinum jewellery,fashion jewellery,and silver jewellery.Chart 25:Indian Domestic Jewellery Market Share in CY23 Source:Industry Sources,CareEdge Research.Note:Studded include:diamonds,coloured gems,gemstones,&others including platinum jewellery,fa

296、shion jewellery,silver jewellery,etc.84%13%3%GoldStuddedOthers 38 Industry Research Report on Indian Gems and Jewellery Sector Gold Jewellery The Indian jewellery market is traditionally dominated by gold jewellery.Gold jewellery purchases in India are not just limited to consumption as is the case

297、with fashion jewellery.They have a strong saving significance.This is more evident in rural communities where access,literacy,and acceptance of other financial savings instruments are low.These factors have resulted in gold being a major saving asset class.Cultural differences,religious&trust concer

298、ns,and other elements that influence jewellery purchases have all contributed to gold jewellery s significance.Chart 26:Gold Demand Trend in India Source:Industry Sources,CareEdge Research In H1CY24,total domestic demand for gold(including jewellery,bars and coins)was estimated at 289 tonnes as comp

299、ared to 281 tonnes in H1CY23.In CY23,the gold demand was 761 tonnes,a decline of 1.7%y-o-y over CY22,this was primarily due to a 15%y-o-y increase in gold prices.The jewellery segment continued to be the largest contributor and accounted for 76%of the gold demand in India,while bars and coins accoun

300、ted for the balance.The gold jewellery demand declined by 4.1%y-o-y in CY23.The demand was impacted due to increasing gold prices.Studded Jewellery Apart from gold jewellery,the other type of jewellery gaining traction is the studded ornaments segment.The key factor contributing to this segments gro

301、wth is the younger populations preference for diamond-studded gold jewellery,typically made of 14-or 18-carat gold rather than heavy 22-carat gold.There has also been a noticeable shift towards more informal and everyday use of diamond studded jewellery.Furthermore,many urban millennials,unlike the

302、previous generations,are drawn to studded jewellery.Also,most young population believe that heavy gold jewellery is for the elderly.Similarly,they regard that modern designs cannot be found in pure gold.Studded jewellery comes in a wide range of styles and prices.When paired with white gold,a studde

303、d diamond appears to be more expensive,thereby evoking the quality feel of platinum.5453166116015762212021461301871741856087CY19CY20CY21CY22CY23H1CY23H1CY24Gold-Consumer Demand(Tonnes)Gold Jewellery(Tonnes)Gold Bars and Coins(Tonnes)39 Industry Research Report on Indian Gems and Jewellery Sector Alt

304、hough diamond studded jewellery may not have the same advantages as gold as a store of financial value,increasing price transparency and repurchase guarantees offered by most jewellers have helped persuade customers that their investment would not depreciate.Cut and Polished Diamonds India is one of

305、 the leading cutting and polishing centres for diamonds,supplemented by government policies.India is deemed a hub for this industry given the low cost and steady availability of highly skilled labor.Due to its potential for growth and value addition,the government considers this segment as a focus a

306、rea for exports.The industry has become highly sophisticated over the years with the use of advanced technologies in different processes,especially,in planning,inclusion plotting,and laser sawing.Grading of polished diamonds is an established practice the 4Cs of cut,clarity,colour and carat are the

307、standard measure for assigning grade 4.5 City-Wise Demand of the Indian Jewellery Market Chart 27:City-Wise Demand of the Jewellery Market(Top 10)in CY23 Source:IMARC Group,CareEdge Research Mumbai:As Indias financial centre,Mumbai is home to a dynamic and diverse Jewellery market.The city is strong

308、ly associated with luxury,featuring a variety of upscale showrooms that showcase exclusive Jewellery.The market caters to a broad spectrum of tastes,offering everything from traditional handcrafted pieces to modern,custom-made designs.Gold Jewellery is culturally significant,with many jewellers in t

309、he city focusing on intricate bridal collections and heritage-inspired designs.Reflecting its cosmopolitan nature,Mumbai also boasts designer boutiques and renowned brands that regularly launch collections blending contemporary trends with classic styles,appealing to both younger and more traditiona

310、l buyers.Bangalore:Bangalores Jewellery market represents a fusion of tradition and modernity,reflecting its status as a major IT and economic hub.It serves a varied clientele,from affluent IT professionals to long-established families with strong cultural roots.High-end diamond Jewellery and brande

311、d gold collections are particularly popular among the citys elite,while traditional South Indian gold Jewellery,such as kasu malai and temple Jewellery,continues to be in high demand,especially during weddings and festivals.Both prominent retail chains and independent boutiques are well-established

312、in Bangalore,often incorporating advanced technology to enhance the shopping experience.Hyderabad:The Jewellery market in Hyderabad is deeply influenced by the citys rich historical legacy,especially the grandeur of the Nizams.This has fostered a preference for traditional and intricate Jewellery,pa

313、rticularly heavy gold and Polki sets,which are known for their elegance and superior artisanry.Hyderabads jewellers are especially 284 271 204 200 174 162 103 70 55 40 -50 100 150 200 250 300In Rs.billion 40 Industry Research Report on Indian Gems and Jewellery Sector renowned for their skill in cre

314、ating elaborate bridal and ceremonial pieces that celebrate the citys centuries-old traditions.The market also offers a variety of antique Jewellery and heritage-inspired designs,attracting customers who value unique and culturally significant pieces.Hyderabads artisans have earned a reputation for

315、producing high-quality,handcrafted Jewellery that is both historically and culturally significant.Delhi:Delhi is a key Jewellery hub in India,offering a wide range of styles,from heavy traditional designs to sleek,modern pieces.The citys wealthy population drives the high demand for luxury and desig

316、ner Jewellery,with retailers offering a variety of collections that cater to both traditional and contemporary tastes.Delhi is known for its extensive selection and excellent artisanry,with many jewellers providing high-quality pieces that blend classic elegance with modern flair.Chennai:Chennais Je

317、wellery market is distinguished by its deep affinity for gold,making it one of the largest consumers of gold Jewellery in India.The city has a strong demand for traditional South Indian Jewellery styles,such as temple Jewellery.Chennai also has a mix of large retail chains and small,family-owned bus

318、inesses that specialize in intricate,detailed designs that showcase the regions rich cultural heritage.Kolkata:Kolkatas Jewellery market is celebrated for its distinctive gold filigree work,including Dokra and Meenakari.The citys Jewellery offerings reflect a blend of cultural influences,with a stro

319、ng emphasis on traditional and antique styles.Additionally,there is significant demand for lightweight,everyday Jewellery that combines fine artisanry with wearability.Pune:Punes Jewellery market strikes a balance between traditional and modern designs,appealing to a wide range of customers.The city

320、s middle and upper-middle-class consumers have a particular preference for gold and diamond Jewellery.Many jewellers in Pune offer custom-made pieces and unique collections that reflect the citys fusion of cultural heritage and contemporary style.The market thrives on a commitment to quality artisan

321、ry,attracting buyers looking for exclusive Jewellery that suits various occasions and personal tastes.Ahmedabad:Ahmedabad is known for its strong preference for traditional and ethnic Jewellery,reflecting the citys rich cultural heritage.The market features intricate gold Jewellery,Polki sets,and he

322、ritage-inspired designs.Ahmedabad also has a robust local Jewellery manufacturing industry that supports a wide range of bespoke and one-of-a-kind creations.Surat:Surat,often called the diamond capital of the world,has a Jewellery market that revolves around diamond trading and manufacturing.The cit

323、y is a leading hub for polished diamonds,supplying jewellers across India and globally.Surats Jewellery retailers focus heavily on diamond-studded and minimalist designs,emphasizing the citys expertise in diamond artisanry.Jaipur:Jaipur is renowned for its royal and heritage Jewellery,including Kund

324、an,Meenakari,and Polki styles.The citys artisans are experts in traditional Jewellery-making techniques,creating elaborate pieces that retain a timeless appeal.Jaipurs markets attract buyers in search of authentic Rajasthani designs and exceptional artisanry.4.6 Indicative Share of Indian Gems and J

325、ewellery Industry Indias gems and jewellery market is one of the largest and most vibrant in the world,deeply embedded in the countrys cultural and economic life.The market can be divided by material type,with gold,diamonds,gemstones,and other materials each playing a significant role in its diversi

326、ty and value.41 Industry Research Report on Indian Gems and Jewellery Sector Chart 28:Gems and Jewellery Market Breakup-By Material Type(CY23)Source:IMARC Group,CareEdge Research In 2023,gold was the dominant material in Indias gems and jewellery market,making up 81.8%of the total market share.It wa

327、s followed by diamonds(9.7%),silver(4.6%),and other materials(3.9%).Gold:Gold remains the foundation of Indias jewellery market,due to its cultural and historical importance.It is highly prized for weddings and festivals,and as an investment,often seen as a symbol of wealth and social status.Althoug

328、h demand fluctuates with market prices and economic factors,gold jewellery continues to be in strong demand,thanks to its deep ties to tradition.There has also been a growing interest in lighter,more modern gold jewellery designs,particularly among younger consumers,adding a contemporary layer to th

329、e traditional market.Diamond:The diamond jewellery sector in India has seen robust growth in recent years,particularly among consumers looking for luxury and exclusivity.Diamonds are a popular choice for special occasions,particularly weddings,and are often seen as a symbol of sophistication.This se

330、gment is supported by a strong retail presence and branding efforts from both domestic and international jewellers.Innovations in diamond cutting and bespoke design options have further driven interest,making diamond jewellery a staple in modern Indian collections.Silver:Silver is valued for its aff

331、ordability and versatility,appealing to a broader customer base.It is commonly used in both traditional and modern jewellery designs,such as bangles,anklets,and earrings.Silver also plays a key role in fashion jewellery,where its flexibility allows for more creative and experimental styles.The mater

332、ial has gained popularity due to its cost-effectiveness in comparison to gold and diamonds,particularly among middle-income consumers.Additionally,the rise of silver-plated and sterling silver items has introduced a modern twist to traditional designs,catering to changing consumer preferences.Others

333、:The others category encompasses a variety of materials,including gemstones and non-traditional metals.Fashion jewellery incorporating synthetic and alternative materials is on the rise,attracting consumers who seek trendy yet affordable options.This segment is particularly appealing to fashion-forward buyers looking for unique,budget-friendly pieces.Gold82%Diamond10%Silver4%Others4%42 Industry Re