gold jewelry
The impact of continuously rising gold prices and increase in import duty by the government is now clearly visible on the jewelery business. According to the report of CRISIL Ratings, the sales of gold jewelery may decline by 13 to 15 percent in the current financial year. Due to expensive gold, common people are staying away from buying jewelery and are turning towards light weight and low carat jewellery. However, due to high prices, jewelers’ earnings are expected to increase.
The report says that gold prices have reached record levels. Apart from this, the government has recently increased the custom duty on gold from 6 percent to 15 percent. Due to this, gold jewelery has become more expensive, which is directly impacting the purchases of customers. However, despite the decline in sales volume, jewelers’ earnings may increase. The reason for this is the high prices of gold. According to the report, the revenue of organized jewelers may increase by 20 to 25 percent in this financial year.
Due to gold inflation, people are now buying light weight and low carat jewelery items instead of heavy jewellery. The demand for 16 to 22 carat jewelery and studded jewelery is increasing. At the same time, people are showing more interest in buying gold bars and gold coins for investment. In the last two years, the sale of gold bars and coins has increased by more than 50 percent.
Did India import so much gold?
According to the report, in the financial year 2026, India imported about 720 tonnes of gold, due to which foreign exchange worth $72 billion went out of the country. Keeping this in view, the government has increased the custom duty to reduce gold imports. Experts believe that due to high prices and increased import duty, the total sale of gold jewelery this year may come down to 620 to 640 tonnes. This level is considered to be the lowest in the last decade. However, organized jewelers are now expanding rapidly in smaller towns through the franchise model. This will increase their reach and may provide some support to their business. But in the coming time, fluctuations in gold prices and government policies will decide the direction of this sector.
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