As India gears up for its vibrant and culturally rich festive season, which starts with Rakshabandhan and continues through Christmas and New Year, the nation is not only celebrating its diverse traditions and customs but also driving economic prosperity.
This period encompasses a wide array of festivals, including Dussehra and Diwali, and one industry poised to benefit significantly from this festive buzz is the jewelry sector, a cornerstone of the country's economic landscape, contributing around 7 percent of India's gross domestic product (GDP).
Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), recently shared his insights with CNBC-TV18 regarding the current state of the jewelry market in India during this festive season. His statements shed light on the trends and expectations within the industry.
One notable trend that Shah highlighted is the substantial surge in the demand for gold following the India International Jewellery Show. “After this IIJS event, which has been recently concluded, we see huge growth, huge demand coming into the gold segment – divided into two parts, plain gold and studded,” he said.
However, it's not all glitter and gold for every segment of the jewelry market. Shah pointed out that demand for studded jewelry, which typically features gemstones and diamonds, has been slower compared to the demand for plain gold jewelry. This divergence could be attributed to various factors, including changing consumer preferences and economic fluctuations.
Despite variations in demand for different types of jewelry, the India International Jewellery Show managed to create a considerable impact on the industry. The event witnessed orders worth an astounding Rs 70,000 crore, indicating the enduring fascination Indians have for jewelry, especially during the festive season.
Shah is optimistic about the future of the jewelry sector, suggesting that the business is poised to pick up momentum as the festive season progresses.
Asher O, managing director of Indian operations at Malabar Gold & Diamonds, shares this optimism and expects a better second half for the jewelry industry as the country approaches its major festivals. Companies like Malabar Gold & Diamonds, known for their exquisite jewelry designs, are well-prepared to meet the surge in demand during this festive period.
“Like the first half, we are expecting a better second half this year because Diwali and other festivals are in the second half,” he said.
For more details, watch the accompanying video
First Published: Aug 29, 2023 5:10 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM