Netscribes’ latest market research report titled Gems and Jewelry Market in India 2013 mentions that the players operating in the gems and jewelry market will benefit from the high demand being witnessed for their products. The sector is one of the leading foreign exchange earners for the country. A number of reasons has aided growth in this sector; the most important being the love that Indians have for jewelry, especially gold. However, Indians are increasingly willing to spend on other forms of jewelry such as diamonds and gemstones studded in gold or precious white metals such as platinum. This trend will help in the development of the overall jewelry market and the country may not just remain one of the largest processors of rough diamonds, but may start consuming a lot of the finished, polished diamonds as well.
Although there are several industry bodies working for the development of the market, the high imports of gold into the country has resulted in several attempts by the government to restrict imports as well as reduce the consumption of gold. This is largely in order to correct the unfavorable current account deficit that the country is facing. Also, the beneficiation program in Africa acts as a threat to diamond processors in India. However, despite these challenges, the market is expected to continue to develop. Moreover, mandatory hallmarking of jewelry has ensured that the market will continue to grow steadily over the next few years.