%% “Growing at a steady rate of 15 per cent the domestic gems and jewellery market is currently poised at Rs 1.22 lakh crore,” said The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in a study titled ‘Current Trends in Indian Gems and Jewellery Sector’. %% ASSOCHAM sought feedback from around 1,500 key retailers, manufacturers, wholesalers throughout the country including branded players from all verticals of the industry - gold, diamonds, silver and gemstones. The study was carried out between March-June.%% The growth in the industry is spurred by its rising constant demand as jewellery is considered a trusted store of value in possession and a large number of Indian consumers approve of it as a safe investment option, said majority of industry bigwigs adding that demand is expected to rise further with onset of the annual festive season during August-October. %% “Rising purchasing power, lifestyle changes and overall increasing affordability among Indian middle-class are a significant reasons for higher jewellery demand,” said ASSOCHAM secretary general D.S. Rawat. %% Introduction of hallmarking and certifications has transformed the buying preferences as more youngsters can be seen buying jewellery as part of fashion accessory and are even parking their access funds as part of investments in this sector, according to the ASSOCHAM study. %% Availability of skilled artisans with expertise in jewellery making, designing and diamond cutting, processing at competitive wages is another reason for growth in this sector. %% Conscious marketing efforts are also a reason for rapid increase in jewellery demand in India. %% Number of people going online to buy jewellery has been rising. Traditional jewelers in India are realising the importance of internet in the contemporary world and providing hassle free shopping experience thereby luring customers from higher strata in large numbers. %% “There are various online jewellery shops where customers can choose from a wide variety of items and place an order from the luxury of their home and get it delivered at their doorstep, this trend is catching up fast due to increasing internet penetration and availability of top-notch broadband services,” said Mr Rawat. %% Exports of gems and jewellery from India are rising at over 15 per cent year-on-year basis and are expected to cross 50 billion dollars by the end of this fiscal. %% Demand in the sector is flowing from countries like the UAE, the United States, the European Union, Russia, Latin America Hong Kong and China. %% Growth in gems and jewellery is mainly driven by cut and polished diamonds market but China is emerging as a tough competitor as increasing number of diamond processors from various countries including India are setting up facilities in China considering factors like use of better technology, cheap and disciplined workforce, surge in number of Chinese consumers, points out the ASSOCHAM study. %%