Gold Consumption
ICRA sees domestic gold jewellery consumption rising 14-18% in FY25
This story was originally published at 14:09 IST on 17 December 2024
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Informist, Tuesday, Dec. 17, 2024
MUMBAI – India's gold jewellery consumption is expected to continue its momentum with an estimated growth of 14-18% in value terms in 2024-25 (Apr-Mar), according to rating agency ICRA. Improving consumer sentiments and festival-led demand aided consumption growth in recent months and a higher number of auspicious and wedding days is likely to help jewellery demand growth in the second half of FY25, the rating agency said.
Despite occasional corrections, the average gold price has risen around 25% from FY24. The continuing uptick in gold prices for the last seven quarters has been stimulated by the evolving global economic and geopolitical scenario and rising investment demand for gold, it said.
Organised jewellers are expected to add 16-18% to their retail network in FY25. Most large jewellers are opting for the franchisee model to expand into new markets, due to low capital expenditure and knowledge of the local market with the franchisee-partner, it said.
ICRA's sample size of 15 large retailers, which accounts for around 75% of the organised market, is projected to record a healthy expansion of 18-20% in FY25, Sujoy Saha, vice president and sector head, corporate ratings, ICRA said. "Planned store additions with focus on Tier II and III cities, rising gold prices, shift in preferences towards branded jewellery and some likely pre-buying in Q4 FY2025 (Jan-Mar) on account of a higher number of auspicious days in Q1 FY2026 (Apr-Jun) shall drive growth," Saha said, adding that the customs duty reduction cut is also expected to discourage smuggling. End
Reported by Ashutosh Pati
Edited by Saji George Titus
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