Summary
The annual compound growth rate of diamond and jewelery business in India is about 14% per annum from 2008 to 2011. This change in retail will give lot of help to Indian Economy to grow.
Analysis
According to the 2009 edition of India Retail Report Indian jewelery retail sector is ranked on 4th place with the market size of about $14.9bn. in 2007.
Jewellery represented 5.2% of the overall Indian retail market which stood at Rs.13.3 trillion ($287 bn) last year, a year-on-year growth of about 10.8%. Of this, organised retail accounted for nearly 6% or Rs.783 billion ($17 bn) of the total Indian retail sector and grew by 42.4% versus 2006.
In 2007, food and grocery was the dominant retail category with a 59.5% share, valued at Rs.7.92 trillion ($171 bn), followed by clothing and accessories with a 9.9% share at Rs.1.31 trillion ($28.3 bn) and out-of-home food (catering) services with a 5.4% market share at Rs.713 billion ($15.4 bn).
The report said that given the rapid pace of retail growth, the Indian retail market is expected to be in excess of Rs.18.1 trillion ($391 bn) by 2010, with organised retail accounting for nearly 13% of the total market. And this is only possible when various government incentives coupled with private sector initiatives are projected to drive the sales of India's gems and jewelry sector at a compound annual growth rate of 14 percent from year 2008 through 2011.
RNCO suggested that increasingly competitive global markets would drive postive change in India. They expect branded jewelry demand to grow faster than the generic counterpart, and that innovative designers and low cost manufacturing would make the country more attractive for production investment.
All these facts purely show us that Indian economy and Indian retail has many more to explore beacuse of good market condition and strong government support with positive and cheap production costs due to negotiable labour market.
