Jewelry Sales May Drop by 15%: Krishi Ratings Report Mumbai: A report by Krishi Ratings has indicated that retail jewelry sales in the current financial year could decline by between 13% and 15% compared to the previous year. The report attributes this potential decline to a combination of rising gold prices and increased import duties on silver. In the fiscal year 2024–25, jewelry sales had already seen an 8% drop, but the current year’s challenges are expected to be more pronounced due to these factors. The report highlights that while the value of jewelry sales is projected to grow by 20–25% in the current financial year, the volume of sales is likely to decline significantly. This is primarily due to the sharp increase in gold prices, which has made it more expensive for consumers to purchase jewelry. Additionally, the recent hike in import duties on silver has further dampened demand, as consumers are shifting toward cheaper alternatives. According to the report, the rise in gold prices and the increased import duties have led to a noticeable shift in consumer behavior. Buyers are now opting for lighter, lower-carat jewelry (16–22 carats) that is more affordable. This trend is expected to continue as the market adjusts to the higher costs. The report also notes that the global uncertainty and the depreciation of the rupee against the dollar have contributed to the surge in gold prices. In the 2025–26 fiscal year, India imported 720 tons of gold, leading to a foreign exchange outflow of ₹6.89 lakh crore. Meanwhile, silver prices have risen by 55% during the same period, further influencing consumer choices. Krishi Ratings’ director, Himank Sharma, emphasized that the increased import duties on gold are likely to act as a barrier to demand.#mumbai #gold_prices #krishi_ratings #himank_sharma #silver_import_duties
