A more affluent middle class alongside growing demand for branded jewellery could fuel sturdy growth in India’s jewellery industry over the next four years, a new study revealed.

India-based technology-backed consultancy 1Lattice said the Indian gem and jewellery market is projected to hit US$128 billion by 2029, indicating a compound annual growth rate (CAGR) of 9.5 per cent.

The report, Glimmers of Growth, also pointed to an increased adoption of digital retail platforms aside from rising disposable income among the middle class and preference for certified and branded jewellery as growth drivers.

Gold, which currently accounts for 86 per cent of overall share, remains a dominant player in the market, it added.

“Government initiatives such as reductions in gold import duties and mandatory hallmarking have boosted consumer confidence and affordability,” the report said. “The rise of online retail, with virtual try-on tools and digital marketing strategies, is reshaping consumer engagement, especially among younger demographics.”

LGD

The lab-grown diamond (LGD) sector is also promising, driving significant growth in the jewellery industry. India’s LGD market is projected to reach US$1.2 billion by 2033, with CAGR of nearly 15 per cent. LGD exports, meanwhile, grew eightfold since 2021, with India now contributing around 15 per cent of global LGD production, according to 1Lattice. 

“However, the lack of domestic HPHT machine fabrication presents an opportunity for investment to establish a full-fledged supply chain,” the report noted. “LGDs are increasingly favoured for their affordability, ethical sourcing and environmental benefits, aligning well with global ESG goals.”

Challenges

Despite an upbeat outlook, India’s jewellery trade also faces several roadblocks, led by volatile gold prices, high labour costs, fragmented inventory systems and the slow adoption of advanced retail technologies. 

“Nonetheless, India’s position as a global leader in both natural and lab-grown diamond processing, supported by favourable policy frameworks and rising international demand, sets the stage for sustained growth,” explained 1Lattice.

To capitalise on this momentum, industry players should enhance transparency through certification, invest in technology and tap into global trade opportunities while promoting jewellery as both a fashion statement and a long-term investment, the report said.