India’s gem and jewelry market is expected to grow sharply over the next five years, reaching $128 billion by 2029, according to a new report from New Delhi-based consultancy 1Lattice.
The report, titled Glimmers of Growth, forecasts a 55% rise in market value from $83 billion in 2024. This growth is expected to be driven by several factors: rising disposable income, growing interest in branded and certified jewelry, strong export potential, reduced gold import duties, and increased government support. The report also highlights a surge in demand for lab-grown diamonds.
Despite current economic challenges in the sector—including a 17% drop in annual exports up to March 2025, shorter workweeks, job cuts in manufacturing, sanctions on Russia, and potential new tariffs from the United States—the report maintains an optimistic outlook.
Ashish Dhir, the report’s lead author, writes in the foreword:
“India’s gems and jewelry industry stands at the intersection of heritage and innovation. It is evolving quickly to keep up with changing consumer preferences, new technologies, and shifting global trends.”
Dhir notes that the industry is expected to grow at a compound annual growth rate (CAGR) of 8.3% until 2029. Digital transformation and increasing demand for certified jewelry are also seen as key drivers of this trend.
Lab-grown diamonds are a fast-growing segment within the market. Revenue from this category is projected to increase from $350 million in 2024 to $1.2 billion by 2033, reflecting an estimated CAGR of 15%.
The report also emphasizes the dominant role of gold in India’s jewelry spending. Gold accounts for around 86% of total jewelry purchases, with the country’s expanding middle class showing a growing appetite for luxury items.
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