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| Indian Market on Bullion Industry: |
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| India is the leading consumer and importer of bullion. It consumes nearly 800 MT of gold, which accounts for 20 per cent of world gold consumption. Out of this, around 600 MT of gold goes into making jewellery |
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The domestic bullion and jewellery market is estimated to be around US$ 16.1 billion, which is expected to grow to the size of US$25 billion within 2-3 years.
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India’s gem & jewellery sector commands around 80% of the jewellery trade worldwide. Total Export of jewellery in April 2009 was at Rs.5749.56 Crore.
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India's gold demand is firmly embedded in cultural and religious traditions. It is also valued in India as a savings and investment vehicle and is the second preferred investment after bank deposits.
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Gold hoarding tendency is well engrained in the Indian society and unofficial stocks held by Indians is estimated to be well above 19,000 tonnes, which is around 11% of the total global gold stocks.
- In the cities gold is facing competition from the stock market and a wide range of consumer goods.
- Facilities for refining, assaying, making them into standard bars, coins in India, as compared to the rest of the world, are insignificant, both qualitatively and quantitatively.
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| The Indian gems and jewellery industry is one of the fastest growing segments in the Indian economy. The annual growth rate is approximately 15 per cent. |
| Gems and jewellery worth US$ 17.79 billion was exported during April 2008 to February 2009. The United Arab Emirates (UAE) was the largest importer of gems and jewellery from India in 2008-09, with a share of 31 per cent. This was followed by Hong Kong with 25 per cent and the US with 20 per cent. The gem and jewellery sector accounted for 13 per cent of India’s total merchandise exports. |
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