India’s gold rush slows as the PM’s appeal and soaring prices hit demand

Despite near-term pressure, jewellery retailers remain optimistic about structural demand, particularly as weddings and festivals continue to anchor consumption. From Dariba-Kalan to Tanishq. India’s gold rush slows as PM Modi’s appeal and soaring prices hit demand. Footfall at jewellery stores has fallen, and customers are spending more time evaluating value when making purchases, as prices remain elevated

1.       Gold jewellery demand drops over 50 per cent amid price surge

2.      Consumers shift to lighter designs and exchange old jewellery

3.      Lower-carat gold products gain popularity as prices rise

At Dariba Kalan, one of Delhi’s oldest and busiest jewellery markets, the mood has turned cautious.

Customers still walk into stores, but many leave without buying. Others spend hours comparing prices, exchanging old jewellery or shifting to lighter designs. For traders in the narrow lanes of the historic bullion hub, the combination of Prime Minister Narendra Modi’s appeal to avoid non-essential gold purchases and the relentless surge in prices has sharply altered consumer behaviour. The slowdown at Dariba reflects a broader trend playing out across India’s jewellery industry after the government raised customs duty on gold imports to 15 per cent from 6 per cent last week, even as global prices continued to rally.