Estimated  Jewellery sales of $20 billion by 2010 and $35 billion by 2015
India consumes nearly 800 tones of gold accounting for about 20 per cent of the world gold consumption. of which nearly 600 tones goes into making jewellery. According to the World Gold Council (WGC), India’s gold consumption is expected to cross the 1,000-tonne mark for the first time, this year.
Leading players in the Indian Jewellery market
Swarovski, the global crystal goods manufacturer and marketer, with plans to achieve 10% of its global turnover from the country in the next 10 years. The company plans to set up 30 stores by 2009, from the current 13. Damas India, part of one of the largest jewellery retail outlets in the world, is adding 16 new stores to its present dozen stores in India. Morgan Stanley, Citigroup, Goldman Sachs and BSMA Ltd. collectively purchased a 7% stake in Gitanjali Gems for around $27.8 million. Goldman Sachs and UBS Securities have acquired 6.28% in Shrenuj & Co at around $2.07 million and $2 million, respectively. Gemology Headquarters International (GHI), a U.S.-based gemological grading and research laboratory, has opened its first Indian branch at Opera House, Mumbai.Reliance Retail is planning an aggressive entry into the jewellery retail market through its about 400 to 500 jewellery retail outlets across the country. Some of the world's biggest names in the jewelery and luxury items such as watches and cuff-links are making inquiries to set up shop in India. Multi-national jewelery brands such as Tiffany, Cartier, Zales and Harry is in the process of establishing Indian partners. 

Foreign trade Policy initiatives:
As per the foreign direct investment policy, foreign direct investment of up to 51% in single brand retail stores including jewellery is allowed.
As per the latest foreign trade policy the following facilities have been extended to the    jewellery sector. Service Tax on services (related to exports), which are rendered abroad have been exempted. Re-import of Diamonds & Jewellery (either in complete or partial lot) exported on consignment basis have been allowed. Duty free entitlement for consumables for export of rhodium plated silver jewellery has been increased to 3%. To reduce the transaction cost for the diamond sector, testing facility at International Diamond Laboratory (IDL), Dubai, has been incorporated in the list of laboratory/certifying agencies. Duty free import entitlement of tools, machinery & equipment has been allowed. For metals other than gold, platinum, it will be 2% and for gold and platinum, it will be 1% of FOB value of exports during the previous financial year. Categorization of exporters as One to Five Star Export Houses has been changed to Export Houses and Trading Houses with rationalization and change in export performance parameters.

Diamond
The Indian diamond trade generates over US$ 4 billion per annum in exports, its large labor force is integral to catapulting the country as the biggest diamond cutting center for small roughs. India was known to have diamond mines many centuries ago and has continued to maintain its tradition of diamond cutting with an estimated 1 million processors handling over 57 per cent of the world’s rough diamonds by value. Salient features of Indian diamond industry are  11 out of 12 stones (diamonds) set in jewellery are cut and polished in India (processing is done on rough diamonds in full range of sizes and qualities, including stones larger than 10 carats), India's share in this sector is about 80 per cent of the world market, India also accounts for 90 per cent of the volume of diamonds processed in the world, India employs over 90 per cent of the global diamond industry workforce, Diamond jewellery consumption is likely to jump to nearly 80 percent in 2010 and over 95 per cent between 2010 and 2015.

Major retail outlets:
Tanishq, jewellery division of Tata group company Titan Industries Ltd,is set to increase the exclusive stores to 110 from the current 103 by the end of this fiscal. Mehrasons Jewellers

Estimated annual market size for watches is US$ 200 million in India
The size of the watch market currently is estimated to be around 45 million pieces annually. The organized sector alone contributes up to 30 percent of this figure, and the rest of the demand is being met by the unorganized grey sector. Growing lifestyles coupled with higher disposable income, favorable demography and increasing retail and mall culture will be the key driver of growth in the sales. This has led to the brand awareness and owning of more than one watch to suit the occasions.   More than 50 percent of the Indian population is under twenty five and more than 80 percent of the population is below 45 years of age.

Potential markets for watches
Low penetration level of watches amongst the Indian is a boon to the Indian watch industry which is currently 40 per thousand people against 250 per thousand in the developed countries. Further only 37% of the Indian population owns watches. This signifies that this industry per se has got good growth potential .Consumers in networth category in India is growing fast. India is expected to have 1.2 million net worth individuals with liquid assets of US4100000 by 2010

Major watch Companies in India
Titan,HMT,Purewal,Omega,Maxima,Sonnata,Orpat,Ajanta,Indo-Swiss and Swatch group