Editor’s Note
This article highlights a surprising trend in India’s retail sector, where record-high gold prices in December 2025 coincided with a significant 12% year-on-year surge in jewelry sales. The data, from the Retailers Association of India, suggests consumer behavior defying conventional market expectations.
An interesting picture emerged from retail markets across the country in December 2025. Despite gold prices being at a record high, a tremendous surge was seen in jewelry sales. According to the latest report from the Retailers Association of India (RAI), the jewelry segment recorded a year-on-year growth of 12% in December.
According to the association’s 67th Retail Business Survey, total retail sales in December 2025 increased by 10% compared to the previous year. Demand remained strong even in the last month of the year, following an 11% growth during the festive season. Consistent store visits (footfall) and thoughtful purchases supported the market.
The report specifically mentions that in the past two months, gold prices have increased by nearly 30%. Despite this, purchases related to weddings have kept jewelry demand strong. However, a slight decline was indeed seen in terms of purchase volume, meaning people are buying gold with less weight but higher value.
In regional data, Western India remained ahead, recording 14% growth. The South saw 11%, the North 10%, and Eastern India 7% growth. This means demand was spread across the entire country and was not dependent on any single region.
Apart from jewelry, Food & Grocery, Furniture, Sports Goods, and Quick Service Restaurants (QSR) also recorded double-digit growth. QSR remained at the forefront with a 16% increase. Meanwhile, Consumer Durables and IT segments grew by only 3%, and people postponed purchasing expensive gadgets.
In summary, the retail market appears stable in 2026, but customers are now making more thoughtful purchases, focusing on value, and despite expensive gold, Indians’ love for gold remains intact.
