ICRA Report: India’s gold jewellery purchase to grow 18 per cent in 2024-25

In value terms, domestic gold jewellery consumption is expected to continue its momentum in the current financial year with an estimated growth of 14-18 per cent year-on-year, according to an ICRA report

This follows the sharp growth of 18 per cent in 2023-24, primarily driven by realisations even as volume growth was subdued. A sharp 900 basis points cut in import duty in the Union Budget in July 2024 and consequent correction in gold prices for a brief period led to some pre-buying of jewellery, bars and coins during Q2 FY2025, which is generally a seasonally weak quarter, the report said.

“While gold prices were volatile, improving consumer sentiments and festive-led demand increased in recent months. This, coupled with a higher number of auspicious and wedding days, and favourable monsoons aiding better rural output, is likely to help jewellery demand growth in H2 FY2025,” according to the report.