India’s enduring affair with gold jewellery: A timeless love story

India’s love affair with gold jewellery is a tale that spans centuries. From ancient civilizations to modern times, gold has held a special place in the hearts of Indians, not just as a precious metal but as a symbol of wealth, status, and tradition. This enduring fascination has not only shaped cultural practises and rituals but has also had a significant impact on the country’s economy.

History 

Gold has been deeply ingrained in Indian society for thousands of years. Historical records from the Indus Valley Civilization, dating back to 2,500 BCE, reveal the prominence of gold jewellery in their culture. Over the years, gold jewellery has become an integral part of Indian weddings, festivals, and religious ceremonies. It is considered auspicious and is often passed down as an heirloom from generation to generation, preserving the legacy and value of these timeless pieces.

Economic Impact

The gems and jewellery industry in India has evolved into one of the largest sectors in the country, playing a vital role in boosting the Indian economy. In recent years, it has contributed around 7% to the country’s GDP, accounting for 15.71% of India’s total merchandise exports. The industry has become one of the fastest-growing sectors, generating significant foreign exchange earnings and providing employment opportunities for millions of people across organised and unorganised sectors.

Expanding Global Influence

India’s gem and jewellery market has experienced remarkable expansion. According to 2020 statistics, India is among the top seven highest exporters of gems and jewellery globally, with its exports accounting for 3.5% of the world’s total. Diamond jewellery holds the largest share, followed by silver-cut diamonds, lab-grown diamonds, and synthetic stones. India’s gems and jewellery exports reached USD 39.14 billion in 2021–22, witnessing a substantial growth of 54.13% over the previous year. The government aims to further boost these numbers, aiming to reach USD 100 billion in jewellery exports by 2027.

Government Initiatives

The Indian government has put in place certain measures to help the gem and jewellery sector expand. The signing of a Free Trade Agreement (FTA) with the United Arab Emirates (UAE), which has expanded exports and is anticipated to attain a target of USD 52 billion, is one noteworthy endeavour. In order to boost the economy and lower prices, the government has also decreased customs duties on cut and polished diamonds, coloured gemstones, gold, silver, platinum, and palladium. The implementation of updated gold monetization plans, the elimination of import taxes, and the promotion of hallmarking have all significantly contributed to the industry’s expansion.

Promising Future

India’s enduring affair with gold jewellery continues to shape the country’s cultural fabric and boost its economy. As demand for jewellery remains strong, driven by both domestic consumption and international exports, the future looks promising for the gems and jewellery industry. With on-going government initiatives and positive developments, India is well on its way to achieving its target of becoming a USD 100 billion jewellery export market by 2027.

India’s passion for gold jewellery is firmly anchored in its traditions and cultural background. Gold has been crucial in influencing Indian society from ancient civilizations to the present. Additionally, the gems and jewellery sector has grown to be a significant economic player in India, creating jobs and raising the GDP of the nation. The industry’s future is bright with the support of the government and continued efforts, guaranteeing that India’s undying love for gold jewellery will shine for centuries to come.

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