Gold demand craters 70% in a fortnight as duty hike, Modi austerity pitch chill jewellery counters
India's jewellery sector logged just 7.5 tonnes of gold demand in the fortnight to May 27, down from 25 tonnes a year earlier, after import duty jumped to 15% from 6% and effective tax hit 18.45%. Joyalukkas reports a 35%+ sales decline; Bhima and peers see buyers downtrading to lightweight, lower-carat pieces.
What happened
India's gold demand fell ~70% in the fortnight to May 27 after import duty was hiked to 15%, compounded by PM Modi's austerity appeal. Joyalukkas reports 35%+
Key facts
- 70% demand drop
- 7.5 tonnes vs 25 tonnes YoY
- import duty 15% from 6%
- effective tax 18.45% from 9.18%
- Joyalukkas -35%
Why this matters
Distressed regional chains and family-run karigar workshops become acquirable at depressed multiples now, so prepare LOIs targeting players with strong locations but weak working-capital buffers.