Jaipur, often referred to as the Pink City, is not just famous for its vibrant culture and stunning architecture, but also as a major hub for the gemstone industry. When looking for the best gemstone manufacturing company in Jaipur, it’s essential to understand the market dynamics and why Jaipur stands out in this industry.
In this blog, we delve into the factors contributing to the growth of the gemstone market in Jaipur and why it is home to some of the best gemstone manufacturing companies and suppliers.
Market Size of Gemstone and Jewelry in India?
India’s gemstone and jewelry industry is experiencing significant growth, largely due to a strong rebound following the pandemic. In FY-2021, the market size of Indian gems and jewelry reached an impressive $6,792.24 million. This growth is fueled by the adoption of advanced technology in jewelry manufacturing and an increasing desire for luxury items among consumers.
The expanding upper-middle-class population and evolving fashion preferences in India have also played a crucial role in this market expansion. Furthermore, cultural and astrological beliefs regarding the benefits of specific gemstones, such as Emerald and Yellow Sapphire, significantly influence purchase decisions. As a result, India’s export value of colored gemstones was USD 342.27 in April 2024.
Also, Read: Types of Gemstones
Size of Gemstone Industry in Jaipur
Jaipur, also known as the Pink City, remains a vital hub for gemstones and jewelry in India. Jaipur’s gems are renowned for their impeccable cut and polish, a tradition that continues to attract interest today.
While specific market share figures might have shifted since the TechSci research, Jaipur undoubtedly plays a significant role in the western region’s jewelry industry. The city boasts a thriving community of skilled artisans and Jewellery Manufacturers in Jaipur.
According to a report, there was a positive trend in plain gold jewelry exports for FY 2023-24, registering a growth of 46.91%. This growth highlights the enduring strength of Jaipur’s position as a major center for gemstones and employment in India. The industry in Jaipur continues to provide livelihood to around 1.5 lakh workers, making it a key source of income for the region.
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Gemstone & Jewelry Industry Growth by Product Type
The growth of the gemstone and jewelry industry in India can be analyzed through various product types, including gold, diamond, silver, and gemstones. The gemstone market itself is further categorized into specific types such as Diamond, Emerald, Ruby, and Sapphire.
Jaipur, famously known as the Pink City, is a renowned hub for gemstones, particularly Emeralds, which are processed with exceptional precision. This meticulous craftsmanship has made Jaipur’s Emeralds highly sought after globally. India’s diamond industry is also prominent on the world stage.
According to the Gem and Jewellery Export Promotion Council (GJEPC), Jaipur alone processes over 90% of the world’s Emeralds, underscoring its significant role in the global gemstone market. This specialization and expertise in gemstone processing contribute substantially to the overall growth of India’s gemstone and jewelry industry.
Also, Read: Emerald Rings – Perfect Gift for Any Special Occasions
Factors Why Jaipur’s Gemstone Market Size is Growing Substantially
The gemstone market in Jaipur has been growing substantially, driven by several key factors. According to Future Market Insights, the price of colored gemstones has more than doubled in the past decade.
This increase, despite colored gemstones being less expensive than diamonds, is due to their rising status as symbols of prestige and their perceived astrological benefits. Other significant reasons for this growth include:
- Increase in purchasing power
- Urge to be trendy
- Support from government
- Technology advancements
- Change in customer preferences
- Adherence to beliefs of society
- Assurance of authenticity & purity
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Increase in Purchasing Power
One of the major factors of the rising Gemstone Market Size is, the rise in disposable income, which has increased the purchasing power of consumers. As people have more money to spend, they are more willing to invest in high-quality gemstones.
This emphasis on quality is crucial; customers are prepared to pay a premium if they believe the product meets their standards. The combination of greater financial capacity and a strong demand for superior products is fueling the substantial growth of Jaipur’s gemstone market.
Urge to be Trendy
Colored gemstones have emerged as a major fashion statement among the youth in India and abroad, who strive to stay in vogue. This increasing demand for stylish and unique gemstone jewelry has positively impacted Jaipur’s market size, as more consumers seek out vibrant and fashionable pieces to complement their personal style.
The city’s reputation as a hub for exquisite, trendsetting gemstones has solidified its position in the global market, attracting both local and international buyers eager to embrace the latest fashion trends.
Also, Read: Best Diamond Jewellery Manufacturer in Jaipur
Support from the Government
One of the key factors contributing to the substantial growth of Jaipur’s gemstone market is the robust support from the Government of India. The government has implemented several supportive policies that have significantly boosted the market size of colored gemstones.
For instance, the Free Trade Agreement (FTA) with the UAE is expected to positively impact India’s exports, enhancing trade opportunities.
Additionally, the reduction of customs duties on cut and polished gemstones has been introduced to further stimulate trade. These initiatives have created a favorable environment for gemstone suppliers and manufacturers in Jaipur, promoting the growth and global competitiveness of the industry.
Technology Advancements
One of the primary factors behind the substantial growth of Jaipur’s gemstone market is the advancement in technology. The gemstone industry in Jaipur has embraced modern technologies in the cutting and polishing processes, ensuring that the quality of the gems is consistently top-notch.
These technological advancements have not only enhanced precision and efficiency but also allowed for more intricate and innovative designs, catering to the evolving preferences of consumers. As a result, Jaipur has solidified its reputation as a leading hub for high-quality gemstones, attracting both domestic and international buyers.
Change in Customer Preferences
Another key factor is the change in customer preferences. Traditionally, important occasions were celebrated with the exchange of sweets. However, this trend has shifted significantly, with gemstones now being extensively used as gifts.
During festivals and special events, relatives and family members increasingly prefer to exchange gemstones, valuing them for their beauty, cultural significance, and perceived astrological benefits. This shift in gifting preferences has bolstered the demand for colored gemstones, contributing to the dynamic expansion of the gemstone market in Jaipur.
Adherence to Beliefs of Society
Gemstones are believed to bring good luck because of astrology, so people want them a lot, especially in Jaipur now. That’s why many people there are buying gemstones. They think gemstones are really special and important because they bring good things into their lives, like luck and happiness. That’s why Jaipur’s gemstone market is getting bigger and bigger.
Assurance of Authenticity & Purity
In Jaipur, the top gemstone stores promise that their gems are real and pure. They get certifications from trusted labs in Jaipur to prove it. Customers really care about this because they want to be sure they’re getting the real deal. This trust in the authenticity and purity of gemstones has been a big factor in the growth of India’s gem and jewelry industry.
Also, Read: How to Clean and Care for Your Jewellery
Growth Forecast of Gemstone Industry in Jaipur
Jaipur’s booming gemstone industry fuels India’s economic engine. Jewelry and gems contribute a significant 7% to the nation’s GDP and 16% to India’s total merchandise exports. Projecting continued growth, TechSci Research forecasts an impressive 8.34% annual increase between 2023 and 2027.
This translates to a potential market valuation of $119.80 billion by 2027, solidifying India’s position as a major player in the global gem and jewelry market. So, the gemstone market in Jaipur is likely to get bigger too. Here are some reasons why:
- More trusted sellers and wholesalers are growing.
- There’s a big variety of products and designs available.
- New technology like rapid prototyping and computer-aided design is making things better.
- More organized companies are joining the gemstone industry, which helps it to grow even more.
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Conclusion
Understanding the market dynamics and why Jaipur stands out in this industry is crucial when seeking the best gemstone manufacturing company in Jaipur. With factors like trusted retailers, diverse product ranges, technological advancements, and an increasing number of organized players, Jaipur’s gemstone market is poised for substantial growth.
This growth aligns with India’s broader gemstone and jewelry industry, which is forecasted to make significant contributions to the nation’s GDP and exports, solidifying its global presence.
For beautiful gemstones and expert craftsmanship, get in touch with eongems, a leading gemstone manufacturing company in Jaipur. Call us at +91-8769104410 or email gaurav@eongems.com to explore our stunning collection.
