World Gold Council says India ‘Strong pillar of support’ for gold market
India was the largest consumer of gold before being overtaken by China in 2009. In 2021 India bought 611t of gold jewellery, second only to China (673t) but comfortably ahead of all other gold-consuming markets, a recent World Gold Council report revealed.
India, the world's second-largest consumer of gold jewellery, has experienced rapid change over the last few years due to evolving demographics witnessing growing demand for lightweight and studded jewellery, reported Asian Lite International citing World Gold Council.
"India is a strong pillar of support for the global gold markets as the second-largest consumer of gold jewellery. While weddings and festivals act as important drivers of jewellery demand, our rich cultural heritage and historic status as a major global force in world commerce underpin this strong socio-economic relationship with gold. Over time, we have created countless reasons and joyous occasions to accumulate gold. Bridal jewellery segment alone accounts for nearly half of the market share with rural India being the largest consumer of gold jewellery in the country," said Somasundaram PR, Regional CEO, India, World Gold Council.
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The gold jewellery exports in India have grown from USD 7.6 billion in 2015 to USD 12.4 billion in 2019. Bridal jewellery dominates the gold jewellery landscape, enjoying 50-55 per cent of market share in India, reported Asian Lite International.
Plain gold jewellery maintains 80-85 per cent of market share, the majority of which is 22-carat although the market for 18-carat jewellery is growing. Daily wear jewellery accounts for 40-45 per cent of the market.
Plain gold jewellery exports accounted for 38 per cent of gold jewellery exports from India in 2021. Over the last decade, nearly 90 per cent of India's jewellery exports have flowed to just five major markets: namely, the UAE, the US, Hong Kong, Singapore and the UK, reported World Gold Council.
Meanwhile, South India dominates Indian gold jewellery consumption, accounting for 40 per cent of the country's total jewellery demand.
Aside from gold, India has a sizeable and vibrant silver jewellery market and is the world's largest fabricator of silver jewellery, reported Asian Lite International.
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"Our 2019 consumer survey, carried out by Hall & Partners, found that 60 per cent of the women surveyed owned gold jewellery, closely followed by 57 per cent who owned silver jewellery, but only 26 per cent owned diamond jewellery," reported World Gold Council.
Meanwhile, Platinum jewellery did not appear among the top purchases by female consumers, as this market is still in its infancy in India.
Notably, India was the largest consumer of gold before being overtaken by China in 2009. In 2021 India bought 611t of gold jewellery, second only to China (673t) but comfortably ahead of all other gold-consuming markets, a recent World Gold Council report revealed.