Hyderabad is still the City of Pearls. But what is made here?

 

BIZ MASALA  |  BUSINESS & CULTURE

Hyderabad is still the City of Pearls. 

But what is made here?

The city’s pearl business rests on imported material and local skill. Its next test is whether that craft can earn trust, keep artisans working and appeal to a new generation of buyers.

Charminar and a pearl storefront, shown in an editorial illustration. This is not a documentary photograph.

The “City of Pearls” is not a city of pearl farms. Hyderabad’s historical advantage has been the trade, the hands that work the pearls and the market that gives them a story. That distinction may determine whether this is a living industry or a fading souvenir identity.

A pearl city built on skill and circulation

Hyderabad’s pearl reputation grew through trade and royal patronage, including the Qutb Shahi and Nizam periods. Historical accounts trace a flow of pearls from the Persian Gulf and other sources into a city whose merchants, setters and artisans built expertise around selection and jewellery-making. Hyderabad’s legacy, in other words, was never based on local oyster beds. It was built around sourcing, craft and commerce. [1]

The work can be intricate: drilling, grading, cleaning, polishing, stringing and setting pearls into jewellery. Craft accounts identify Chandanpet, near Hyderabad, with pearl drilling. But the popular claim that an entire village still depends on the craft needs to be checked against current household and employment data. A craft tradition can survive in memory after the number of full-time practitioners has fallen sharply. [1]

That is why “Is Hyderabad still a pearl economy?” needs a careful answer. It remains a recognisable pearl-trading and jewellery-making cluster. But there is no reliable, current public account I found of its total turnover, export value, artisan employment or production. The city’s cultural label is clear; the size and health of the business are not.

What we can establish	What the evidence says	What is still missing
Trade identity	Hyderabad remains associated with pearl retail and jewellery craft, especially around the Old City.	Current number of active pearl firms, workshops and workers.
Material origin	Pearls sold in the city are substantially sourced from elsewhere; contemporary traders cite imports including China and South Korea.	Verified annual imports handled by Hyderabad firms, split by natural, cultured and imitation.
Market pressure	September 2026 reporting quotes traders on declining footfall, online competition and changing preferences. One shopkeeper estimated a 20% annual fall for his business.	A representative sales or footfall series across the district and online channels.
GI opportunity	“Hyderabad Pearls” application 1677 was filed on 18 November 2025; the registry lists it as Pre Examination.	Final product definition, approved production area, user rules and artisan benefit-sharing.

 

The pearls changed before the city did

The transition from natural pearls to imported cultured pearls is not recent. In 2012, traders told India Today that Chinese pearls had come into Hyderabad for generations and then dominated the market by volume. The same reporting described local processing after import. The contemporary trade is therefore not simply “foreign product replacing local product”; imported raw material has long been part of Hyderabad’s business model. What matters is how much skilled work, design and margin remain local. [2]

The supply mix has also become more varied. Recent Old City reporting quotes traders sourcing pearls from China and South Korea and describes a wide range of products and price points. That makes the label “Hyderabadi pearl” potentially confusing for customers: does it describe the origin of the pearl, the place it was processed, the design, or all three? Clear disclosure could turn that confusion into a point of differentiation. [3]

An artisan drilling a pearl, depicted in an editorial illustration. The image represents a reported craft process, not a photographed Hyderabad workshop.

The market’s problem may be bigger than taste

Old City traders interviewed in September 2026 describe fewer walk-in buyers, shopping moving online, tourists less likely to make the trip and younger customers seeking trendier designs. One retailer estimated that his own business had fallen about 20% over the past year. These interviews are a strong signal for further reporting, but they are not a market-wide survey. [3]

A Telangana government district export plan points to deeper structural issues. It describes a traditional artisan base, but flags inadequate new design development, limited exposure to customer ideas, expensive informal finance, low margins, worker turnover and small family businesses struggling to scale. It recommends design and skill support, affordable credit, quality certification, branding and export promotion. The document reflects an earlier planning cycle, so each diagnosis needs to be retested with current traders and artisans. [4]

This changes the consumer question. Maybe buyers have moved on from pearls. But perhaps the products, storytelling and routes to market have not moved with them. The Gem & Jewellery Export Promotion Council’s 2025 report describes renewed interest in pearl jewellery and contemporary layered styles, including imitation pearls. It suggests the category is adapting in broader fashion markets, even as Hyderabad sellers report weaker footfall. [5]

A GI application puts the identity question on paper

The “Hyderabad Pearls” GI application offers a potentially important test of what the city claims as its own. India’s official registry records application 1677, filed on 18 November 2025 by the Telugu Pearls Merchants Association and the Hyderabad and Secunderabad Pearls Merchants Association. The public record shows “Pre Examination,” not registration, and lists follow-up documents filed in April 2026. [6]

A GI mark could help buyers distinguish a local craft and product tradition from generic pearl jewellery. But the protection will matter only if its rules are precise and verifiable. If pearls are imported, that should be transparent. The local claim might rest on particular processing, design or finishing practices—but the application must define those practices, the geographic scope, who can use the mark and how artisans share in the value. The public status page does not yet resolve those questions.

Authenticity is commercially important. Traders say customers are unsure how to tell natural and cultured pearls from imitation products. The answer cannot be a sales pitch alone. Clear labels, reliable testing, written bills, transparent return policies and a traceable GI system—if approved—could rebuild confidence across both physical shops and online sales.

A possible contemporary styling direction, shown as an editorial fashion illustration; it does not represent a current Hyderabad brand or consumer survey.

Where the next growth could come from

Hyderabad does not need to compete with pearl farms to defend its name. Its strongest opportunity may be to build a more visible and trusted craft cluster: document who does each stage of the work, publish quality standards, give artisans access to contemporary design and product photography, and help established retailers and younger labels sell through both the Old City and digital channels.

Retail can also become an experience. Demonstrations, workshop visits and guided buying that explain the difference between natural, cultured and imitation pearls could make a visit more useful than a quick souvenir stop. Modern collections might make pearl pieces easier to wear beyond weddings and formal occasions. These are strategies to test with designers and customers, not assumptions that every buyer wants minimalist jewellery.

A separate opportunity is freshwater pearl cultivation. ICAR institutions have developed freshwater pearl-culture methods and run training programmes for farmers. Telangana could examine a small fisheries-led pilot if water conditions, species, survival rates, economics and market access support it. That would be a new aquaculture proposition—not a description of Hyderabad’s existing pearl trade and not a guaranteed substitute for imports. [7]

The business test

The strongest next step is to make the market measurable. The State and merchant associations could publish an annual account of active firms, artisan jobs, processed volumes, sales channels, product mix and exports. Trade figures need to be assembled carefully because raw pearls, pearl articles and precious-metal jewellery can fall under different customs classifications. The World Bank’s 2024 India export figure under the narrow code for articles of natural or cultured pearls is only one slice of trade; it is not a complete count of pearl jewellery and does not identify Hyderabad’s contribution. [8]

Then the city can decide what it wants the phrase “City of Pearls” to mean in 2030: a retail nostalgia brand, a working artisan cluster, a trusted origin-linked jewellery label, a digital-first design sector—or a combination. The title still has cultural force. Whether it describes an economically resilient industry will depend on the next generation of craft workers, buyers and businesses.

Imported supply	Hyderabad craft and trade	Buyer value
Natural and cultured pearls sourced from global markets	Selection • drilling • grading • cleaning • stringing • setting • design • retail	Documented quality • distinctive design • trustworthy origin disclosure • shopping/heritage experience

 

Reporting questions to close before publication

·       How many pearl artisans and processing units are active today in Hyderabad and Chandanpet, and how has that number changed?

·       Can customs or DGCI&S provide a defensible Hyderabad/Telangana series for raw pearls and pearl jewellery, with HS-code limitations documented?

·       What does the GI application define as “Hyderabad Pearls,” and what controls will prevent misuse or exclusion of small artisans?

·       What share of each retail segment is bridal, everyday wear, tourist purchase, online order and imitation product?

·       Would designers and younger buyers respond to redesigned products, better provenance, certification or workshop experiences?

Sources

[1] Asia InCH, “Pearl Jewellery and Jewelled Objects of Telangana” (craft history; current extent of artisan practice requires field verification): https://www.asiainch.org/craft/pearl-jewellery-of-andhra-pradesh/

[2] India Today / IANS, “Pearls from China dominate Hyderabad pearl market,” 20 November 2012: https://www.indiatoday.in/lifestyle/whats-hot/story/pearls-from-china-dominate-hyderabad-pearl-market-121994-2012-11-19

[3] The Times of India, “Losing their lustre? Hyderabad’s pearl traders battle changing times,” 6 September 2026: https://timesofindia.indiatimes.com/city/hyderabad/losing-their-lustre-hyderabads-pearl-traders-battle-changing-times/articleshow/133846902.cms

[4] Telangana Industries Department, Hyderabad District Export Action Plan (diagnosis and recommendations; document reflects an earlier planning cycle): https://ipass.telangana.gov.in/Industries/Library/DEAP_Districts/DEAP_HYD.pdf

[5] Gem & Jewellery Export Promotion Council, H1 FY2025–26 trade trends report: https://www.gjepc.org/pdf/Gem-%26-Jewellery-Half-Yearly-Report-H1-FY2025-Final.pdf

[6] Intellectual Property India, official GI registry, Hyderabad Pearls application 1677: https://search.ipindia.gov.in/GIRPublicSearch/Application/Details/1677

[7] ICAR, freshwater pearl-culture technology training programme, 2024: https://icar.gov.in/index.php/en/skill-development-training-programme-freshwater-pearl-culture-technology

[8] World Bank WITS / UN Comtrade, India exports under HS 711610 in 2024 (narrow product classification): https://wits.worldbank.org/trade/comtrade/en/country/IND/year/2024/tradeflow/Exports/partner/ALL/product/711610

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