Globally, Jewellery demand was up 37% in the quarter ending September 2013(Q2 2013) to 576 tonnes (t) from 421t in the same quarter last year, reaching its highest level since Q3 2008. In China, demand was up 54% compared to a year ago; while in India demand increased by 51%. There were also significant increases in demand for gold jewellery in other parts of the world: the Middle East region was up by 33%, and in turkey, demand grew by 38%.

Regionally, Asia Pacific holds the largest jewellery market in the world with more than half of the share being contributed by India and China alone. India and china are also the two largest gold consumers in the world followed by the Middle Eastern region. Other countries in Asia Pacific such as Thailand and Vietnam are also large consumers of gold and thereby driving the regional growth of the market. India and China together account for almost 60% of jewellery demand and around 50% of total bar and coin demand of the world.

The Global market for Gems and Jewellery today is over USD 100 billion With jewellery manufacturing dominated by a handful of countries like India, Italy, China, Thailand and the USA. It is one of the fastest growing industries accounting for 14.57% of India’s  total merchandise exports during the financial year 2012-13.

The Indian Gems & Jewellery market in 2013-13 is estimated to be USD 40 billion and is expected to grow by 13% per annum to reach USD 45-50 billion by 2015. India’s gems & Jewellery industry is one of the important contributors to the country’s export-led growth. According to the provisional data by Gems and Jewellery Export Promotion Council(GJPEC), the total exports of Gems and Jewellery during April 2012 to March 2013 stood at USD 39.03 billion, including that of cut and polished diamonds at USD 17.41 billion, gold at USD 18.28 billion and coloured gemstones at USD 0.65billion.

India’s gems and jewellery industry is likely to double in the next five years, according to a study titled ‘All that glitters is gold: India Jewellery Review 2013’ by the global consultancy firm AT Kearney. The study forecasts the sector to reach Rs 500,000–530,000 crore (US$ 81.63 billion-US$ 86.52 billion)by 2018 from Rs 251,000 crore (US$ 40.96 billion) in 2013. In FY 2012–13, industry exports touched Rs 227,000 crore (US$ 37.04 billion), topping textiles and apparels by a substantial 25 per cent.

The investment demand in the form of coins and bars has the capacity to reach Rs 180,000–190,000 crore (US$ 29.38 billion-US$ 31 billion) by 2018, from Rs 85,000 crore (US$ 13.86 billion) in FY 2011–12. The gems and jewellery sector contributes significantly to the Indian economy through employment generation, exports and value additions.