A recently released report by research-based global management consulting firm TechSci Research,  "India Gems and Jewelry Market By Product Type, By Point of Sale, By Organized  vs. Unorganized, Competition Forecast and Opportunities, 2011-2021", projects the growth of the  Indian gems and jewellery market at a CAGR of 11.26%, during the 2016-2021 period.

“Growing demand for designer jewellery, favourable government policies, rising disposable income along with formation of free zones to drive India gems and jewellery market through 2021,” are some of the reasons behind this growth the organisation notes.

“Changing lifestyle preferences has led to increase in brand consciousness and inclination of consumers towards western brands, which in turn resulted in increased demand for exclusive designer jewellery, across the country,” the   report  points out, while stressing the “aggressive marketing strategies” of the various players  which have further created a positive environment for jewellery sales.

“According to National Council of Applied Economic Research, in 2015, the number of middle class households in India was 53.3 million and the same is expected to reach to 113.8 million by 2025,” says the report. “Moreover, according to Central Intelligence Agency, India median age by gender in 2016 is 27.6 years, with that of males standing at 26.9 years and that of females at 28.3 years. India's young population comprises more than 50% of the country's total population, which is one of the primary reasons to which increase in demand for designer jewellery can be attributed. Increase in personal disposable income and rising standard of living in urban areas, has shifted the mindset of consumers from saving to consumption and led to increased spending on lifestyle.”

The report notes that South India has emerged as “the fastest demand generator for gems and jewellery in India”, and is expected to continue to be a dominant market.

"Gems and jewellery market is surging in India at a significant pace,” said Karan Chechi, Research Director with TechSci Research. “Demand for processed gems and jewellery from India has settled across the globe and served as an impetus to development of gems and jewellery industry in recent years. Growing purchasing power, rapid urbanisation and rising young population coupled with changing consumer preferences and inclination towards innovative products has increased the demand for different types of jewellry such as diamond in gold jewellery and platinum jewellery, across India.”

The report  not only evaluates  future growth potential of the India gems and jewellery market,  it  also identifies and analyzes the emerging trends as well as the  challenges and opportunities present in India gems and jewellery market.