India’s diamond-studded gold jewellery market was valued at Rs 48,510 crore in CY25, up from Rs 23,830 crore in CY20. The market recorded a CAGR of 15.3% between CY20 and CY25, with the growth rate projected to increase to 16.2% over the next five years.
The projected market value represents an increase of Rs 54,210 crore between CY25 and CY30. The forecast reflects growing demand for branded, design-led jewellery, lightweight products and greater penetration of organised retail.
According to CareEdge Research, rising disposable incomes, urbanisation and brand awareness are widening the customer base beyond metropolitan markets. Young urban consumers and working women are among the key audiences for lightweight and trend-led diamond jewellery. Weddings, anniversaries and self-purchases are also contributing to demand.
The expansion of organized retail is expected to support market growth through product certification, transparent billing, buyback policies, financing options and omnichannel access. E-commerce and customisation are also providing consumers with more ways to explore and purchase diamond-studded jewellery.
Organised retailers accounted for 36.7% of India’s broader retail gold jewellery market in CY25, while unorganised players held the remaining 63.3%, according to the report. Local jewellers continue to benefit from established customer relationships, regional reach and flexible payment arrangements.
The report identifies expansion into Tier II and Tier III cities as another opportunity for organised players to widen their reach.
The projected growth comes with risks linked to gold and diamond price volatility, dependence on imported raw materials and competition from lab-grown diamonds. Changes in import duties could also affect jewellery prices and working-capital requirements for manufacturers and retailers.
India’s position in diamond processing and its export-oriented gems and jewellery industry remain relevant to the category’s outlook. However, the market’s ability to achieve the forecast will depend on sustained consumer demand, wider access to branded products and retailers’ ability to address affordability concerns.