Despite an economic slowdown, the Indian luxury market, including high-end jewelry grew by 25% last year, reaching $15 billion, and recent studies in the country provide encouraging news for the future of the Indian luxury market which has seen many global players enter it in recent years. The luxury market is seen growing by 30-35% over the next three years. Furthermore, a survey carried out by the Diamond Producers Association (DPA) finds that millennials are, in fact, interested in jewelry, and indicates that millennials are almost twice as likely to have bought diamond jewelry as a holiday gift in comparison to non-millennials, according to an analysis article in Rough & Polished.
In addition, the Indian retail jewelry is undergoing a huge transformation, especially in luxury jewelry. Consumers are also seeing jewelry not just as an investment but as a fashionable accessory. Indian jewelry manufacturers have increased the quality of their products in order to be able to compete with foreign brands. The Indian market is expanding due to economic deregulation, a growing young working population, wealth generation, rapid GDP growth, and increasing per capita consumption.
Research by ASSOCHAM finds that India had 403,000 High net worth Individuals (HNIs) in 2015, from 153,000 in 2010. And understanding the requirements of Indian consumers, many leading national and international luxury jewelry brands are creating designs to match Indian tastes. Jewelers like Anmol, Malabar Gold & Diamonds, Asmi, Kalyan Jewellers, Joy Alukkas and a host of retailers and chains regularly come up with high-end jewelry with Indian motifs especially for the important wedding collection market. Indian brands are also entering tier 2 cities, going beyond the huge metropolises.