The Indian retail jewellery industry is expected to witness a 10-12% growth in domestic jewellery consumption for FY2024, revised up from an earlier estimate of 8-10%, driven by the rise in gold prices. However, ICRA projects a moderate growth rate of 6-8% in H2 FY2024 due to tepid rural demand amid persistent inflation.
Surging gold prices in India are leading some individuals to exchange their gold jewelry for new pieces, particularly during the wedding season. Higher prices are driving more Indians to reuse their gold, and while consumers are purchasing for weddings, overall demand is relatively subdued. Gold prices in India have reached around Rs 60,000 for 10 grams.
Jewellery Demand India: Surging gold prices in India are leading some individuals to exchange their gold jewelry for new pieces, particularly during the wedding season. Higher prices are driving more Indians to reuse their gold, and while consumers are purchasing for weddings, overall demand is relatively subdued. Gold prices in India have reached around Rs 60,000 for 10 grams.