Global luxury bets on India’s tech and intellectual prowess
India has grown into the world's second-largest market for gold jewellery due to its expanding middle class and an escalated market for weddings
India has grown into the world's second-largest market for gold jewellery due to its expanding middle class and an escalated market for weddings
The gold demand increased by 28% YoY to ₹188,400 crore in Q3 2023; in volume terms, the demand rose by 10% in the July-September period.
However, value wise demand rose by 4% to ₹82,530 crore, compared to the ₹79,270 crore sales in Q2 of 2022.
The growth is mainly due to increase in sales volumes due to pent-up demand and recovery in discretionary spending post the pandemic, says a study.
Though higher gold prices will compensate for the volume loss and ensure the industry's revenue remains flat year-on-year, operating margins would be impacted.
Overall taxes on gold now rise sharply from 14% to around 18.45%.
Driven by the Akshaya Tritiya season, the jewellery industry is expected to witness a 45% year-on-year growth in the first quarter of FY23.
Gold prices have fallen by around 15% from the record-high levels of ₹56,000 seen in August 2020.
Kalyan Jewellers has managed to get its IPO oversubscribed, and is betting on a strategy that tailors each of its stores according to the location’s cultural values. But there are challenges ahead.
Many believe cash deals up to ₹2 lakh without KYC leaves a loophole for jewellers and bullion dealers to exploit.