During this festive season, strong demand prevails despite gold and silver price fluctuations. Let’s explore the promising outlook.
India celebrates many festivals all year round, and it is a diverse and colourful scene. These festivals can be about worshipping Goddess Durga, like Navratri or the festival of lights, Diwali. They can also be about Eid or Christmas. During these times, the markets are bustling with activity. People buy new clothes, jewellery, and do a lot of shopping. In India, the jewellery market is one of the most important parts of the retail industry, especially during the festive season.
Festivals in India have a lot of cultural and religious importance, and jewellery is a big part of the celebrations. One big reason people buy jewellery during festivals is because they believe it brings good luck and prosperity. Gold, in particular, is considered auspicious, and many families like to invest in it during these special times. That’s why the jewellery market in India eagerly waits for the festive season all year long.
In this article, we will go into more detail about the jewellery market in India during the festive season.
A report from Zee Business reveals that there has been a great demand for jewellery sales. The demand for jewellery started picking up after pitru paksha and continued during Navratri. It is expected to keep going up in the next few months. However, there is one thing that is causing a bit of worry, and that is the rising price of gold.
According to the Economic Times, jewellery stocks will likely be in the news in the next two quarters because the festive season has started with Ganesh Chaturthi in India. Experts say a long season is ahead, and the wedding season is starting soon. That means more people will want gold and jewellery, so the demand is expected to increase.
Special Importance of Gold in Indian Festivals
Indians have a strong tradition of buying gold during the festive season, especially on Dhanteras. This day is considered auspicious in India, and buying gold on Dhanteras is believed to bring good luck and prosperity to the household. This belief is reflected in the bustling jewellery market.
Jewellers offer various investment schemes, making buying gold during the festive season a tradition and a smart financial move. People see it as a way to celebrate and secure their financial future at the same time.
Challenges in the Jewellery Market
The festive season in India offers an excellent chance for the jewellery market but it also comes with some challenges. One of the big issues is the way gold prices keep fluctuating. Gold prices are affected by global events, and these changes can make it tough for customers to decide when to buy.
But there is some good news too. According to a report from Zee Business, although gold prices have been up and down recently, there is still a strong demand for jewellery. They expect double-digit growth in sales during Dhanteras, despite these price fluctuations. So, people are still keen to buy gold during this special time.
India’s Gems and Jewellery Market
In 2022, the gems and jewellery market in India was worth US$ 85 billion, according to a report from Statista. Looking ahead, this market is expected to keep growing. By 2027, it is predicted to reach more than US$ 127 billion, an increase of over eight percent.
For the year 2023, the revenue in the jewellery segment is expected to hit US$ 76.77 billion. The jewellery market is projected to grow at a steady pace, with an annual growth rate of 4.93% from 2023 to 2026.
Estimated market size of gems and jewellery in India in the years to come.
Furthermore, according to IBEF, India’s total gems and jewellery exports are expected to reach US$ 37.73 billion in 2022-23.
The festive season has a positive impact on businesses and jobs connected to the jewellery industry, which in turn helps the economy gain momentum.
As per the Indian Brand Equity Foundation (IBEF), there are approximately 450 organised jewellery manufacturers, importers, and exporters in India. India is a major hub for jewellery manufacturing, and these players have benefited from the government’s liberal policies. Recent positive developments in the industry are expected to boost further jewellery demand, which is good news for the economy.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.