Are you wondering how to start a jewellery business in India? This profitable idea is a great choice for budding entrepreneurs. According to reports, Indian households hold about 25,000 tonnes of gold, mostly in the form of jewellery. It clearly shows that people in India love jewellery, and the demand for gold remains strong. That is why starting a gold jewellery business in India can be a smart move.
This guide explains the different types of jewellery businesses in India, the benefits of starting one, how to get started, and the simple steps you can follow to build your own brand.
What is a jewellery business?
A jewellery business is a venture where you make, buy or sell jewellery items. Jewelry businesses come in many styles, sizes, and models, and they can be grouped into these main types:
Jewelry Making:
This means designing and crafting handmade jewelry for sale. It can include beadwork, wire design, beautiful handmade pieces, or work with metals, gemstones, glass, wood, or plastic.
Custom Jewelry:
This business focuses on personalized designs. It can include engagement rings, name pendants, or special pieces made the way the customer wants.
Jewelry Retailer:
Retailers buy jewelry from manufacturers or wholesalers and sell it directly to customers. They may sell through brick-and-mortar stores, online stores, or both. Common products include rings, necklaces, bracelets, earrings, watches, and more.
Wholesale Jewelry:
Wholesalers sell jewelry in large quantities to retailers or other businesses. They typically do not sell directly to regular customers.
Jewelry Repair Service:
This type of business repairs damaged jewelry, restores old pieces, or resizes rings and other items.
Jewelry Consulting:
This service advises customers on selecting jewelry, creating custom designs, or investing in precious gemstones and fine pieces.
What is the average budget for starting a jewelry business?
The money needed to start a jewelry business depends on the model you choose:
Online store: Starting an online store can cost between $2,000 and $25,000. This includes website setup, purchasing inventory, and initial marketing costs.
Physical store: Opening a store is more expensive and can cost anywhere from $50,000 to over $1,000,000, depending on the size and location. Costs include rent, renovations, and starting inventory.
Home-based business: This is usually the cheapest option. Startup costs for equipment, materials, and promotion can range from $500 to $20,000.
Remember, these costs vary depending on your location, the size of the business, and the type of jewelry you plan to sell.
Is it possible to open a jewelry store with minimal investment?
Yes, you can start small with limited money. Here are some smart ideas:
Start online: Running an online store costs less than opening a store. You save on rent and other major expenses.
Keep inventory small: Start with a small collection. This helps you test what customers like without spending a lot of money at once.
Make jewelry at home: Working from home saves on rental costs. You only need basic tools and materials to get started, although you may need more space and equipment later on to grow.
Starting small is a safe way to start, but you will need more funds over time to grow your business.
Save money without sacrificing quality
Start small: Opt for silver over gold. Silver is less expensive, helps you experiment with new designs, and still gives a rich look. Try selling at local craft markets first to see what people like before investing in a large stock.
Buy materials in bulk when possible. Many suppliers offer a 5-10% discount if you buy 10 kg of 22-karat gold at once. If that seems too expensive, join hands with another new jeweler and split the order to reduce costs.
Do simple tasks yourself. Basic soldering and polishing can be learned from free online videos. Save outsourcing for difficult tasks like detailed stone setting or machine engraving.
Take advantage of government assistance programs. MSME registration can help you get low-interest loans and tax benefits as a small manufacturer. A quick online search and application can help you save a lot of money.
Keep a simple expense record. Write down every rupee spent on equipment, materials, or advertising. When you track your expenses, you understand where to cut costs next month.
Legal requirements and licenses for starting a jewelry business in India
To legally run a jewelry business in India, you must complete certain formalities.
Choose a business structure
Decide whether your business will be a sole proprietorship, partnership or private limited company. Each option has different tax and legal rules.
Business registration
Register with the appropriate authority to give your business official status.
GST registration
If your annual turnover is more than ₹20 lakh, GST registration becomes mandatory. This allows you to collect taxes and issue proper invoices.
BIS Hallmark license
If you sell gold or silver jewellery of more than 14 carats, you need a BIS Hallmark license. This shows that your jewellery meets the purity standards.
Trade license
Obtain a trade license from your local municipal office to run your shop legally.
Other approvals and insurance
Some businesses may also require fire safety approval, pollution board approval for manufacturing, import-export code and insurance to protect against hazards.
Top Tips
Find second-hand tools or workbenches to save money when starting out. You might find some good deals.
If you sell online, you only need to make one item to photograph and list. Once an order is placed, you can make it. This way, you won’t spend too much money on stock.
Always be clear about how long it will take to make and deliver your jewelry. Give yourself extra time in case of delays or issues.
Selling at markets or in shops can be more risky at first because you need more stock. It takes time and money to make the pieces and pay for the space. Many jewelers find success this way, but plan your budget carefully.
Further Reading: Hypoallergenic Jewellery Explained: Safe Metals for Sensitive Skin
Conclusion
The answer to “how to start a jewelry business” or “how to start a jewelry business online” depends on what type of business you choose. Most importantly, you should be financially prepared before you start.
With proper planning, smart budgeting, and access to funding options when needed, you can focus more on building your jewelry brand and worry less about money. A clear plan and steady growth will help you turn your idea into a successful business.
