The report also noted an increasing presence of organized jewellery retailers in rural markets, which currently account for 58% of India’s overall jewellery demand
New Delhi: India’s domestic jewellery market is poised for significant growth, projected to expand at a robust compound annual growth rate (CAGR) of 16% between FY24 and FY28, according to a new report by Minerva Capital Research. The market is expected to reach a valuation of USD 145 billion by the end of the forecast period.
The report highlights a major transformation within the Indian jewellery industry, marked by a steady shift from unorganized to organized players. “India’s domestic jewellery market is expected to register a 16% CAGR from FY24E to FY28E,” the report stated.
Several government-led initiatives are fuelling this transition and supporting the growth of the organized sector. These include significant reductions in customs duties—on gold and silver from 15% to 6%, and on platinum from 15.4% to 6.4%—as outlined in the Union Budget 2024.
Mandatory gold hallmarking, which came into effect on April 1, 2023, and the requirement of PAN cards for jewellery purchases exceeding Rs 2 lakh are further measures aimed at boosting transparency and encouraging domestic value addition.
The report also noted an increasing presence of organized jewellery retailers in rural markets, which currently account for 58% of India’s overall jewellery demand. This expansion is seen as a key driver of industry growth, particularly as rural consumption continues to rise.
Jewellery demand in India remains highly seasonal, peaking during key periods such as wedding seasons (May–June and September–January), harvest cycles (September–November and January–March), and major festivals including Diwali, Dhanteras, Akshaya Tritiya and Ugadi.
As highlighted in the report, one of the key advantages of the gold retail sector is its sustainable business model, which minimizes inventory obsolescence. Old jewellery can be melted down and crafted into new designs, allowing retailers to retain value while adapting to evolving consumer trends.
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