India’s gold jewellery consumption could grow by up to 18% in FY25: Icra (#1687058)

India’s gold jewellery consumption is expected to grow by between 14% and 18% year on year in value terms in the 2025 financial year, according to ratings agency Icra, following 18% growth in the 2024 fiscal year. 

“The organised market is projected to record a healthy year on year expansion of 18% to 20% in FY25,” said Icra’s vice president and sector hear of corporate ratings Sujay Saha, the Press Trust of India reported. “Planned store additions with [a] focus on Tier 2 and 3 cities, rising gold prices, shift in preferences towards branded jewellery and some likely pre-buying in the fourth quarter of FY25 on account of higher number of auspicious days in the first quarter of FY26 shall drive growth.”

The organised jewellery industry is also expected to benefit from the government’s recent customs duty cut, according to Saha. This is because it is designed to help to reduce unofficial imports.  

Volatile gold prices did challenge consumers for significant periods of the financial year so far but the high festive demand helped to rebalance the scales. July saw the Union Budget cut import by 900 basis points and the correction in gold prices this contributed to causing also fuelled gold jewellery demand during a traditionally quiet time, ET Retail reported. 

Many of India’s large scale jewellery businesses are continuing to expand their brick-and-mortar footprints across India, and in some cases abroad. The franchise model is proving popular for this offline expansion due to a reduced investment from the business itself and access to local market insights.