High Gold Prices Drive 20% Diamond Jewellery Growth in India
Indian jewellery retailers expect diamond sales to grow up to 20% this festive season as surging gold prices push consumers toward more affordable alternatives.
Indian diamond jewellery retailers anticipate sales growth between 15% and 20% during the 2026 festive season. This trend is primarily driven by a 54% year-on-year increase in gold prices, which has pushed consumers toward diamond-studded alternatives, particularly in the Rs 10,000 to Rs 1 lakh price bracket.
Joyalukkas and Senco Gold & Diamonds both expect 20% growth in their diamond segments. Retailers are adapting to high gold costs by utilizing lower-carat gold, such as 18-carat, 14-carat, and 9-carat options, and focusing on lightweight, contemporary designs for everyday wear. This shift is supported by a decline in the price of smaller diamonds, which have dropped by approximately 25%.
Industry players note a distinct change in consumer behavior toward value-led purchases. While traditional wedding jewellery remains a staple, there is increasing demand for versatile styling and affordable luxury that offsets the elevated cost of pure gold.
