Editor’s Note
**Editor’s Note:** India’s gold jewelry demand has surged, with imports more than doubling to a record $10.06 billion in August, driven by sharp customs duty cuts and festive buying.
Gold jewelry demand in India is rising rapidly. Due to a sharp reduction in customs duties and festive demand, gold imports more than doubled in August, reaching a record high of $10.06 billion.
– Semi-urban and rural markets are also contributing significantly to jewelry sales.
– Retailers are expanding their store networks to meet customer demand.
Business Desk, New Delhi. The jewelry market in the country is witnessing a shift in buying trends. Brokerage firm Nuama stated in a recent report that gold jewelry demand could increase by 18% in the second half of calendar year 2024. The upcoming festive season will be a major contributor to this growth. According to the report, the wealthy purchased gold jewelry in the first quarter, while sales of lower-priced jewelry increased in the second quarter.
Semi-urban and rural markets are also playing a significant role in jewelry sales. The report noted that retailers are expanding their store networks to meet the expected rise in customer demand. It added that a key indicator of improving jewelry sales is gold imports, which showed a strong recovery in August.
Due to a sharp reduction in customs duties and festive demand, gold imports more than doubled in August, reaching a record high of $10.06 billion. In the same period last year, gold imports stood at $4.93 billion. Gold imports impact the country’s current account deficit. From April to July, gold imports fell by 4.23% to $12.64 billion. In the previous fiscal year, gold imports rose by 30% to $45.54 billion.
Switzerland is the largest source of gold imports, accounting for approximately 40% of the total. It is followed by the United Arab Emirates with 16% and South Africa with about 10%. Gold accounts for over 5% of the country’s total imports. India is the world’s second-largest gold consumer after China. Imports primarily cater to the demand of the jewelry industry. In the budget, the government reduced the import duty from 15% to 6%.
