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Wednesday, 22nd February 2006 (5742 views)

An increase in purchasing power is causing southern India's share in the country's jewellery market to grow steadily, according to Gitanjali Jewels Limited.

Anuj Rakyan, vice-president of the jewellery division at the company told PTI that the region has seen a "good amount" of growth in the consumption of diamond jewellery in particular.

He ascribed this to the fact that young people in the country now have higher disposable incomes, and therefore more purchasing power.

"Diamonds surely do seem an option of investment," he said. "Traditionally, south India has been more inclined towards investing in gold jewellery. But now the trend seems to be changing. Diamonds are more aspirational."

He also said that an increase in corporate sales could account for the growth in diamond consumption in the south.

"There are a huge number of IT professionals in the South with a vast amount of money, who go and purchase jewellery," he explained.

India's jewellery market was estimated to be worth around Rs 1,00,000 crore in 2005.

 

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