Anushka Jha & Kausar Madhyia, Afaqs
12 May 2026

On May 10, Prime Minister Narendra Modi, in his address to the nation, made some appeals to the citizens of India. In addition to asking Indians to re-adopt Covid-like practices of working from home and refraining from travel abroad, the prime minister also appealed to the citizenry to stop buying gold for weddings for a year.

The appeals come in response to the global energy crisis and economic instability triggered by the US-Iran war and the consequent West Asia conflict, which makes import-dependent commodities like gold especially vulnerable.

The market reaction was almost immediate. Following the Prime Minister’s appeal, jewellery stocks saw sharp declines on the BSE. According to PTI, Senco Gold fell nearly 11%, Kalyan Jewellers dropped close to 10%, and Titan Company declined around 8%, while Tribhovandas Bhimji Zaveri slipped over 6%.
National interest and gold monetisation

Industry leaders have responded by balancing the Prime Minister’s vision with structural solutions.

“India’s economic strength must always come before individual preferences. Hon’ble Prime Minister’s appeal regarding responsible gold consumption reflects the larger national concern of rising imports and pressure on foreign exchange reserves,” says Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council (GJC).

He suggests that a revitalised Gold Monetisation Scheme (GMS) could “mobilise idle household gold” and “convert dormant gold into productive national capital”.

“Nation First. Responsible Gold Ecosystem Next,” he adds.

Avinash Gupta, the vice chairman of GJC, emphasises the emotional and cultural connection of gold to Indian households.

“But today, the nation also faces the challenge of balancing gold demand with economic stability.” He believes the GMS can channel gold into the formal economy, “reducing imports, easing CAD pressure and strengthening India’s financial ecosystem.”

India’s cultural fabric and the market reality

According to a report by MoneyControl, India imports 90% of its gold needs, making the country as one of the largest gold importers globally.

Gold is an integral part of India’s cultural fabric. It is not only a fitting gift for various auspicious occasions but also constitutes one of the most expensive elements of the ‘great Indian weddings’. Additionally, there are specific religious days dedicated solely to the purchase of gold, such as Akshaya Tritiya and Dhanteras.

However, external pressures are already weighing on the market.

Devangshu Dutta, founder of Third Eyesight, a retail management consulting firm, observes: “Jewellery retailers are already suffering from higher raw material costs, and rising gold and silver prices have driven several customers to postpone or reduce their purchases, including on significant dates such as Akshaya Tritiya.”

He notes that while wedding demand may remain strong, discretionary purchases will face a setback. “Companies will need to lean into lighter, more contemporary designs and lower caratage to sustain year-round demand.”

The potential impact of the appeal

Despite rising gold prices, approximately 700 to 800 tonnes of gold are consumed every year by Indian households, weddings, festivals, investment purchases, and rural savings, as per the same Money Control report.

Given the popularity of PM Modi, industry veterans expect a tangible shift in consumer behaviour.

“There will certainly be an impact,” says Arun Iyer, founder and creative partner at Spring Marketing Capital and former chief creative officer at Lowe Lintas, who played a significant role in the creation of Tanishq and several of its iconic advertisements.

“Given that the Prime Minister obviously has a very, very deep influence on our society, I think there will be an impact. People will think twice before buying gold.”

He further notes that while critical purchases will continue, “this quarter is expected to pose some challenges for the jewellery brands”.

Adaptation and brand strategy

According to the India Brand Equity Foundation, India’s gems and jewellery market stood at Rs 7,31,255 crore in January 2025 and is projected to increase to Rs 11,18,390 crore by 2030.

To sustain this growth, players like Suvankar Sen, CEO and MD of Senco Gold Ltd, are focusing on recycling.

“Today, almost 50% of our overall business is driven through recycled gold. This not only helps consumers optimise the value of their existing gold holdings but also contributes towards reducing dependence on fresh gold imports,” he says.

From a brand perspective, Saurabh Parmar, fractional CMO, believes the strategy must shift.

“In a scenario when the head of state says something like this, the brand faces a credibility problem, not a sales problem. The play is to shift from category promotion to category trust, lean on heritage, on long-term value, and on gold’s role in Indian culture.” He advises brands not to appear opportunistic but to signal, ‘We have always been there.'”

Given the popularity of Prime Minister Modi in India, his influence is likely to affect the performance of leading jewellery brands in the next quarter. This may include major players such as Tanishq, Malabar Gold & Diamonds, and Kalyan Jewellers, among others.

(Published in Afaqs)

Priyam­vada C, Mint
1 Dec 2025

A wave of investor cap­ital is flow­ing into India’s labor­at­ory-grown dia­mond (LGD) seg­ment, as fast­s­cal­ing brands tap rising con­sumer adop­tion in a mar­ket now worth well over $300 mil­lion. New-age brands have raised mul­tiple rounds of cap­ital on the back of grow­ing mar­ket share and improv­ing mar­gins.

Actor Shilpa Shetty-backed Lime­light, which is in talks to raise its second round of cap­ital this year, joins the grow­ing list of other small brands such as Onya, Giva, Jew­el­box, Lucira Jew­ellery and Aukera, among oth­ers, who have snagged mon­ies in recent months. Lime­light has appoin­ted Ambit Cap­ital to raise about $20 mil­lion to fund its expan­sion plans, two people famil­iar with the mat­ter said.

Con­firm­ing the fun­draise, the six year-old com­pany’s co-founder Pooja Madhavan said the funds will be used towards store expan­sion and brand build­ing as it looks to touch 100 stores over the next year. “We are in final talks with growth PE funds and reputed fam­ily offices (for the fun­draise),” she told Mint.

Other sim­ilar fun­draises include Onya’s ₹5.5 crore in a pre-seed round led by Zeropearl VC last week, Aukera’s $15 mil­lion raise led by Peak XV Part­ners and Aditya Birla Ven­tures-backed Giva raised ₹530 crore in an internal round led by Premji Invest, Epiq Cap­ital and Edel­weiss Dis­cov­ery Fund, as it looks to scale up its lab-grown dia­mond offer­ings.

Nine pure-play lab grown dia­mond star­tups col­lect­ively raised a record $26.4 mil­lion in 2025, com­pared with $4.7 mil­lion across eight star­tups last year, data from mar­ket intel­li­gence pro­vider Tracxn showed.

The devel­op­ment comes as India’s lab-grown dia­mond jew­ellery mar­ket, val­ued at about $300-350 mil­lion in 2024, expects to grow at a com­pound annual growth rate (CAGR) of 15% over the next dec­ade, as per con­sultancy firm Red­seer’s estim­ates. As the mar­ket evolves, sev­eral prom­in­ent jew­ellery brands will gradu­ally pivot from exclus­ively nat­ural/mined dia­monds in favour of lab-grown altern­at­ives, along­side high-end jew­ellers incor­por­at­ing the lab-growns into their select col­lec­tions, which will drive sales volumes and act as an afford­able entry point for con­sumers.

This seg­ment has par­tic­u­larly picked pace in the last five years, with mil­len­ni­als and gen Z lead­ing this shift, driven by bet­ter value, trend­ier designs from new-age brands, and grow­ing com­fort with lab-grown dia­monds as a cer­ti­fied, high-qual­ity product. This cat­egory has also widened bey­ond occa­sional fash­ion to gift­ing, daily wear and increas­ingly bridal, reflect­ing sus­tained con­sumer con­fid­ence and a will­ing­ness to treat them as a main­stream jew­ellery option, Rohan Agar­wal, part­ner at Red­seer told Mint in an emailed state­ment.

He fur­ther added that new-age brands have stead­ily gained mar­ket share in the mid-ticket gift­ing and daily wear seg­ment with many try­ing to push into premium ranges. While the com­pet­it­ive land­scape is still evolving, incum­bents have already star­ted respond­ing by launch­ing LGD lines of their own, although the extent to which they can chal­lenge remains to be seen.

Major Indian brands that are con­sid­er­ing a foray into this cat­egory include Malabar Gold & Dia­monds, Senco Gold, which has launched the sub­brand Sennes and Tata’s Trent, which launched its brand Pome in West­side stores.

Devangshu Dutta, founder and chief exec­ut­ive officer at Delhi-based con­sult­ing firm Third Eye­sight, echoed the sen­ti­ment. He explained that new-age lab grown dia­mond play­ers are for­cing tra­di­tional jew­ellers to intro­duce LGD options or risk los­ing younger cus­tom­ers. “Not just pre­cious jew­ellery brands, even those that star­ted as fash­ion jew­ellery are expand­ing their range with LGD designs.”

“Down the road, there is poten­tially scope for con­sol­id­a­tion as investors tend to prefer a hand­ful of scaled plat­forms with strong brand recall and robust eco­nom­ics. So, as the cat­egory matures, there may be stra­tegic acquis­i­tions by large jew­ellery houses and cor­por­ates, as well as mer­gers among fun­ded star­tups,” he added.

Those star­tups that can com­bine in-house man­u­fac­tur­ing, design cap­ab­il­it­ies and data-driven retail expan­sion would be at an advant­age, Dutta said. “Key future growth areas for LGD star­tups include omni­chan­nel retail pres­ence within India, with off­line stores espe­cially in demand-dense loc­a­tions such as the met­ros and Tier 1 cit­ies, export mar­kets both with poten­tial cost advant­ages and brand expan­sion, and extend­ing into fash­ion jew­ellery, every­day wear, col­oured lab grown stones and even lux­ury col­lab­or­a­tions that pos­i­tion lab grown as aspir­a­tional rather than merely budget friendly.”

(Published in Mint)