India - Jewellery Briefing

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Briefing

India is the world's foremost gold jewellery fabricator and consumer with fabrication and consumption annually of over 600 tonnes (19.2 million oz) according to GFMS. Measures of consumption and fabrication are made more difficult because Indian jewellery often involves the re-making by goldsmiths of old family ornaments into lighter or fashionable designs and the amount of gold thus recycled is impossible to gauge. Estimates for this recycled jewellery vary between 80 tonnes (2.6 m oz) and 300 tonnes (9.6 m oz) a year. GFMS estimates are that official gold bullion imports in 2001 were 654 tonnes (21.03 m oz).

In India, gold is associated with Lakshmi, the goddess of prosperity and precious stones
(Credit: IndianJewellery.net)

Plain 22 carat jewellery is the core of consumption especially in the rural areas, where gold is so important in judging a family's status at a marriage. A basic marriage set for a bride is two earrings, one nosepin, one ring, one necklace and two bangles, all in 22 carat gold and weighing up to 200 grams (6.2 oz).
Studded (i.e. gem-set) 18 carat jewellery is increasingly popular in the cities and is estimated to have used 31 tonnes (1 million oz) in 2001.

Gold is vitally important in judging a
family's status at a marriage
(Credit: World Gold Council)

Medallions, charms and small gift items account for up to half of what is loosely called jewellery. These items are popular as gifts at weddings and other family events.
Gold thread, known as Jari used in high quality saris worn at weddings and special occasions requires somewhere in the region of 20 tonnes (0.6 m oz) annually.
The market is highly fragmented with an estimated 100,000 workshops supplying over 300,000 retailers, mostly family-owned, single shop operations. The industry is beginning to be modernised with large factories, installing the latest equipment, in centres such as Mumbai, Ahmedabad and Bangalore.
Hallmarking does not exist in India and under-caratage is commonplace. The Bureau of Indian Standards has introduced a voluntary scheme which, although not yet widely used, is becoming more popular. The minimum legal caratage is 9 carat.
The number of retail jewellery outlets has increased greatly since the abolition of gold control, as has the number of Indians possessing gold jewellery.

Source: Gold Fields Mineral Services

Exports have increased dramatically since 1996, and in 2001 stood at over 60 tonnes (1.92 m oz). The US accounted for about one third of total official exports. Manufacturers located in Special Export Zones can import gold tax-free through various registered banks under an Export Replenishment scheme.
Exports are facilitated by the Gem & Jewellery Export Promotion Council.