Hardly 5% of the demand for gold for fabrication in jewellery in India is for
exports. The balance 95% is for domestic sale of gold jewellery.
Many socio-economic factors are responsible for the insatiable demand for gold jewellery in India.
Gold jewellery is an important
item of personal and family wealth in India, which
is bequeathed and passed on to sons and daughters.Every marriage, out of an estimated million marriages every year in India,
involves the gift of a minimum of 30 to 50 gms of gold jewellery.
There are other occasions such as the birth of a child, name-giving ceremony,
etc., when gold jewellery is gifted.
Gold and gold jewellery are also
regarded as an investment to fall back upon during financial crises. Gold and
gold jewellery can be easily converted into cash,
either through sale or through pledging for taking loans. Saving and investing
in gold and gold jewellery can be done in fragments
and piece-meal, in contrast to real estate properties. This convenience suits
small savers and investors in urban and rural areas.
The prosperity of the rural rich gets converted into
investments in gold and gold jewellery. Therefore, India is one
of the biggest markets for gold jewellery. The vast
and growing domestic market for gold jewellery
provides the base for expanding export production. This base consists of 25,000
licensed gold dealers and 450,000 certified gold smiths spread in over 600,000
villages of this sub-continent. They have imbibed in them centuries old
traditions in jewellery making that can provide
millions of design ideas for a resurgent Indian gold jewellery
tremendous potential, not yet exploited, for jewellery
exports. The leading gems and jewellery exporters
believe that what has been achieved in diamond exports can be achieved in jewellery exports too.India has many
natural advantages to accomplish this.India has, at
present, perhaps the largest artisan force for making jewellery
in the world, about 25,000 licensed gold dealers and 450,000 certified
goldsmiths spread throughout the country. Practically, every village boasts of
a family of goldsmiths, having a very long tradition of jewellery
FINANCEMAN ASSOCIATES acknowledges the use of various
printed and electronic media for compiling the content, ideas and statistics on
the gems and jewellery industry presented on this web
page. We at FINANCEMAN ASSOCIATES are thankful to the industry leaders, their
spokesmen, commentators in the media and experts in diamonds processing and jewellery manufacture and, specifically the Gem & Jewellery Export Promotion Council, Mumbai, for the use of
published text and statistics that are in the public domain. The place of
jurisdiction concerning all issues presented on this Web Page by FINANCEMAN ASSOCIATES shall be Mumbai,