The daily wear jewellery accounts for 30-35 per cent of the Indian jewellery market. India's jewellery retail sector has surged to $80 billion (Rs 666,480 crore) in the financial year 2024 from $50 billion in 2018, according to a report by Motilal Oswal Financial Services. The report highlighted multiple drivers that led to the rapid growth of the industry, including rising disposable income, an improving mix for regular wear of jewellery, enhanced product offerings (design, diamonds, etc), trust-building through mandatory hallmarking by the government, and a better buying experience at organised retail outlets.
The organised retail jewellers accounted only for 36 to 38 per cent of the overall share in the retail segment; however, the majority of the retail jewellery market continued to be dominated by the unorganised/local players, comprising over 500,000 local goldsmiths and jewellers. The report noted that the total gold consumption in India is 66 per cent for jewellery and the remaining 34 per cent for bars and coins. India's gold supply is dominated by imports, and the country's gold market experienced notable fluctuations in imports from FY18 to FY20.
The report stated that the country's gold imports reached 980 tonnes in FY19 before declining to 720 tonnes in FY20. This volatility was led by various factors, including declines in global gold prices, buoyant economic conditions leading to heightened disposable incomes, and substantial demand for gold due to traditional .