Jaipur is known for its premium quality precious and semi-precious gemstones. The cut and polish of the gems done by the best gemstone wholesale dealers in Jaipur are unmatched. But, what is the gemstone market size of the Pink City? What is driving the growth of the gemstone market in Jaipur?
In this article, we will discuss that and more that will give you a clear idea of where the gemstone market in Jaipur stands.
What is the Market Size of Gemstone and Jewelry in India?
India’s gemstone and jewelry industry is growing exponentially, mainly because it has bounced back into action after a slump during the pandemic in terms of exports ($11.69 billion). The market size of Indian gems and jewelry, as far as FY-2021 is concerned, is a whopping $78.50 billion.
All thanks to the state-of-the-art technology used in the jewelry-making process and an urge to purchase luxurious products, the market size is growing in leaps and bounds.
The burgeoning upper-middle-class Indian population and their changing fashion preferences have boosted the Indian gemstone market. In addition, societal beliefs and astrological benefits regarding using a particular type of gemstone, like Emerald and Yellow Sapphire, are also influencing customers’ purchase decisions.
Owing to the above reasons, among others, India’s export value of colored gemstones for the period April 2021 to March 2022 stood at $311.45 million, according to GJEPC (Gem and Jewellery Export Promotion Council).
Size of Gemstone Industry in Jaipur
Jaipur, or the Pink City, is one of the most important hubs of gemstone and jewelry in India, and Jaipur’s gems have a reputation for having the perfect cut and polish. As per TechSci research, the whole western part of India accounts for 45% of the Indian gem and jewelry market size. Out of this, the western region of India accounts for 25%, and the mid-western part covers 20% of the total market size.
Therefore, Jaipur, a key player in colored gemstones in the western region, accounts for a considerable share of the market size. As per GJEPC, Jaipur’s gem and jewelry export grew by 35.29% against the pandemic phase and stood at $273.79 million between April 2021 and March 2022. Jaipur’s gemstone industry employs around 1.5 lakh workers and is thus one of the major centers of gems and employment in India.
Gemstone & Jewelry Industry Growth by Product Type
The gemstone and jewelry market in India is divided based on type, distribution channel, region, and others. As per type, the gemstone and jewelry industry is categorized into gold, diamond, silver, gemstone, etc. Furthermore, the gemstone market is classified into Diamond, Emerald, Ruby, Sapphire, and more.
Jaipur and India’s diamonds are famous all around the world. As the Pink City is a well-known gemstone hub, its gemstones, especially Emeralds, are also high in demand as these are processed with precision. As per GJEPC, Jaipur processes more than 90% of the world’s Emeralds.
Reasons Why Jaipur’s Gemstone Market Size is Growing Substantially
If Future Market Insights is to be believed, the price of colored gemstones has increased by more than 100% in the last 10 years. Although the cost of gemstones is less than diamonds, the price rise can be attributed to buyers considering colored gemstones as a status symbol or wearing it more for astrological benefits.
In addition to this, there are other reasons for the growth in Jaipur’s gemstone market size, and they are listed below:
- Increase in purchasing power
- Urge to be trendy
- Support from government
- Technology advancements
- Change is customer preferences
- Adherence to beliefs of society
- Assurance of authenticity & purity
1. Increase in Purchasing Power
Jaipur’s gemstone market size is growing because of a rise in the disposable income of people, which, in turn, has led to an increase in purchasing power. Customers put a lot of emphasis on quality and are willing to spend money if the quality of the product is appropriate.
2. Urge to be Trendy
Colored gemstones have become a fashion statement for youngsters in India and abroad who aim to keep up with fashion trends. The urge to be trendy has significantly and positively impacted Jaipur’s gemstone market size.
3. Support from the Government
The Government of India has come up with supportive policies that have also led to the surge in the market size of colored gemstones. For example, the FTA (Free Trade Agreement) that India has signed with the UAE is said to bring a positive impact on India’s exports. Even the custom duty on cut and polished gemstones has been slashed to boost trade.
4. Technology Advancements
The gemstone industry in Jaipur and India has adopted modern technologies in the cutting and polishing processes to ensure that the quality of the gems is always top-notch.
5. Change in Customer Preferences
Gone are the days when customers would exchange sweets to celebrate important occasions. These days, gemstones are being extensively used as presents that relatives and family members exchange with each other, especially during festivals.
6. Adherence to Beliefs of Society
Gemstones are considered auspicious, given their astrological benefits, and are therefore high in demand everywhere, including Jaipur, recently.
7. Assurance of Authenticity & Purity
The best gemstone shops in Jaipur provide assurance of authenticity and purity as their gems are certified by some of the most reputed gemstone laboratories in Jaipur. Customers give a lot of importance to purity, authenticity, and certification, which has resulted in a positive curve as far as India’s gems and jewelry industry is concerned.
Growth Forecast of Gemstone Industry in Jaipur
India’s jewelry and gems market contribute 7% to the country’s GDP, which is quite impressive and is expected to grow at 8.34% CAGR between FY-2023 and FY-2027 so far as TechSci Research’s report is concerned. Also, the estimated market value of gemstones and jewelry in India is supposed to grow and stand at $119.80 billion by FY-2027.
Therefore, Jaipur’s market size is also expected to grow proportionately. The factors that would drive this growth are:
- Growth of Trusted Retailers & Wholesalers
- Wide Range of Products & Designs
- New Technological Advancements (Rapid Prototyping & Computer-Aided Design)
- Increase in the Number of Organized Players in the Gemstone Industry
Sanjay Bairathi Gems Limited: One of the Best Wholesale Gemstone Dealers in Jaipur
We at SBGL believe that quality, trust, knowledge, authenticity, and superior customer service will undoubtedly help the top wholesale gemstone dealers in Jaipur thrive in this business in the long run. We are committed to growing the market size of gemstones in Jaipur by adhering to the best practices accepted in the industry.
Sanjay Bairathi Gems Limited, a renowned player in the Jaipur gemstone market for over 30 years, specializes in selling premium cut and polished gemstones. Moreover, their expert craftsmen cut and polish gems in-house using state-of-the-art technologies.
References & Resources:
- https://intl.gjepc.org/jaipur
- https://www.techsciresearch.com/report/india-gems-and-jewelry-market/4057.html
- https://www.futuremarketinsights.com/reports/gemstones-market
- https://www.expertmarketresearch.com/reports/gemstones-market
- https://www.ibef.org/industry/gems-jewellery-india
- https://www.jewellermagazine.com/Article/9324/Indian-jewellery-industry-focuses-on-Jaipur-gemstones
- https://shodhganga.inflibnet.ac.in/handle/10603/287371
- https://www.maximizemarketresearch.com/market-report/india-gem-jewellery-market/122565/
- https://www.theweekendleader.com/Headlines/58557/jaipur-gems-jewellery-industry-sees-silver-lining.html
- https://www.business-standard.com/article/economy-policy/export-of-gems-jewellery-more-than-double-in-first-7-months-in-fy22-goyal-121112700859_1.html
- https://www.indiantradeportal.in/vs.jsp?lang=0&id=0,31,24100,24110
- https://www.prnewswire.com/news-releases/india-gems-and-jewelry-market-report-2022-market-stood-at-78-50-billion-in-2021-and-is-expected-to-grow-with-a-cagr-of-8-34-to-reach-119-80-billion-by-2027–301513683.html
