Gold duty hike, Modi's pause appeal trigger 25-30% footfall drop at Indian jewellers
PM Modi's call to curb gold buying, paired with an import duty hike from 6% to 15%, has cut footfalls 25-30% at chains like Senco and Swastik. Crisil pegs FY volume decline at 13-15%. Buyers aren't quitting, just downsizing: bridal sets shrunk from 80g to 45-50g, ticket sizes off ₹1.2 lakh.
What happened
Indian Gold & Jewellery Sector · PM Modi's appeal and 15% gold import duty hike triggered 25-30% footfall drops at jewellers like Senco and Swastik. Crisil sees
Key facts
- import duty hiked from 6% to 15%
- $5.2 trillion household gold stockpile
- 34,600 tonnes held by households
- 600-800 tonnes imported annually
- 13-15% expected volume decline FY
- 25-30% drop in footfalls post-hike
- 10-12% potential demand softening
- bridal sets cut from 80g to 45-50g
- ticket size down ₹1.2 lakh
Why this matters
Distress in mid-tier chains like Senco and Swastik opens a 6-12 month window for consolidation plays or design-led acquisitions targeting the downsized bridal segment.