With gold at record highs, Shah explained how global disruptions continue to weigh on India’s jewellery sector. US tariffs, he said, had hit exports hard - falling nearly 50% in April–June. Initially, customers absorbed the 16% duty (10% tariff plus 6% duty), but further hikes made the burden unsustainable, leading to layoffs in hubs like Surat, Mumbai, and Rajasthan.
“The sector faces a crisis every few years—GST, demonetisation, hallmarking, COVID-19. We’ve become immune to global disruptions,” Shah said. But he stressed that overdependence on the US was risky, and manufacturers including Kama Jewelry were diversifying into GCC countries, South America, and India’s domestic market. He also underlined the need for Free Trade Agreements with large economies to improve competitiveness.
Despite setbacks, Shah remained optimistic: “Consumption is rising steadily. Even if exports take a hit, the domestic market will remain strong.” India has already surpassed China as the world’s second-largest jewellery consumer after the US.
The Rise of Digital Gold
Shah highlighted the growing popularity of digital gold. While rural India long viewed jewellery as savings, urban millennials - once focused on experiences - are now investing in gold for returns. “Over the past five years, gold has outperformed the Nifty,” Shah noted.
Digital gold platforms, he said, have made ownership accessible and transparent. Much like UPI transformed payments, digital gold is formalising a traditional asset class and creating a major opportunity for the industry and economy.
Gold Outlook for 2025
Shah projected that gold prices could cross $3,000 per ounce by 2026. He cited geopolitical conflicts, inflationary pressures, and de-dollarisation - central banks reducing US bond holdings in favour of gold - as key drivers. “With annual production capped at 3,000 tonnes, demand will continue to outstrip supply,” he said, reinforcing gold’s role as the ultimate safe haven.
Kama Jewelry’s Focus
Unlike peers who balance retail and wholesale, Shah has kept Kama Jewelry focused on B2B manufacturing. The company produces everyday-wear jewellery in gold, platinum, and silver, using both natural and lab-grown diamonds. Priced between ₹10,000 and ₹1 lakh, its designs emphasise fast turnover and strong margins for partners.
Shah noted that the industry itself is professionalising, with more corporate entrants, IPOs, and private equity investments. Kama Jewelry aims to serve as a trusted partner in this changing landscape. He added with pride that his two daughters have recently joined the business, bringing fresh ideas and creativity to what is now a true family enterprise.
Shah’s Journey
Born into a family of doctors, Shah was once destined for medicine but changed course after the Mandal Commission reforms and a discouraging incident at a medical college. He experimented with accounting and electricals before a friend introduced him to a diamond grading course - his gateway to the gems and jewellery industry.
With no legacy to rely on, Shah spent years mastering rough manufacturing, assortment, and jewellery making. “Those first ten years were the toughest, but they taught me everything,” he recalled. Today, he emphasises that while AI tools make knowledge more accessible, success still depends on rolling up sleeves and working hard.
Looking Ahead
As the conversation closed, Shah reiterated his belief that values are as important as strategy: “Just as gold must pass through fire to attain purity, an entrepreneur must endure challenges to achieve success.” He remained upbeat about India’s jewellery sector, especially with the festive season ahead, and welcomed government measures on GST relief and ease of doing business.
