New Delhi: Diamonds and gemstones jewellery is set to grab a greater market share from plain gold and silver ornaments with prices likely to come down after import duty cuts proposed in this year’s union budget, making them more affordable for Indians.
Studded jewellery has already been taking some market share from plain gold and silver jewellery over the recent years and the proposed duty cuts are likely to further scale up their demand in the Indian market, global metal consultancy firm GFMS said.
“With the reductions in import duties on precious stones, the domestic studded jewellery would become more affordable for consumers,” GFMS metal analyst Sanjiv Arole said.
India is already the world’s third largest consumer of diamond jewellery after the US and Japan and a further drop in prices could precipitate some important changes in jewellery consumption patterns in the near future, GFMS said.
The production of laboratory-manufactured diamonds is also likely to increase dramatically in the coming years, it added.