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Gold Jewellery Sales Pick Up After Initial Slowdown; Industry Says Cultural Demand Remains Strong Despite Higher Prices

Gold Price News 2026: India's appetite for gold jewellery appears to be recovering despite the government's sharp increase in import duty earlier this year. Although higher taxes initially pushed gold prices upward and temporarily slowed consumer purchases, jewellery retailers now report that customer demand has returned strongly in recent weeks.

According to industry executives, buyers who initially postponed their purchases after the price hike have gradually adjusted to the new pricing environment. At the same time, a recent decline in gold prices has encouraged more customers to visit jewellery stores, boosting overall sales.

Gold Import Duty Increase Led to a Temporary Slowdown

In May, the government increased the customs duty on gold imports from 6% to 15%, raising the overall import tax by nine percentage points.

The move was aimed at reducing gold imports and easing pressure on India's foreign exchange reserves. However, the immediate impact was a noticeable rise in domestic gold prices, prompting many consumers to delay jewellery purchases while they assessed the new market conditions.

Industry leaders say this hesitation was expected, as buyers typically take time to adjust whenever gold prices rise sharply.

Jewellery Demand Has Returned Strongly

Speaking about the market trend, Sandeep Kohli, Chief Executive Officer of Aditya Birla Group's jewellery brand Indriya, said customer footfall slowed across the jewellery industry immediately after the duty hike.

However, he noted that the situation has changed significantly over the past two weeks, with demand recovering at a healthy pace.

According to Kohli, consumers have become more comfortable with the revised price levels, resulting in increased showroom visits and stronger jewellery sales.

Lower Gold Prices Are Encouraging Buyers

Another factor supporting demand is the recent correction in domestic gold prices.

With gold becoming relatively more affordable compared to its recent peak, many customers who had postponed purchases are now returning to the market.

Recent retail prices indicate that 22-carat gold is trading at around ₹13,244 per gram in Delhi and approximately ₹13,229 per gram in Mumbai, making jewellery purchases comparatively more attractive than they were immediately after the import duty increase.

Gold Continues to Hold Cultural and Investment Value

Industry experts believe that gold occupies a unique position in India, where it is valued not only as an investment but also as an integral part of cultural traditions.

Kohli emphasized that jewellery demand in India is driven by weddings, festivals, family celebrations, and long-standing customs. While buyers do compare gold with other investment options based on returns, cultural demand ensures that interest in gold jewellery remains resilient even during periods of higher prices.

He also observed that modern consumers are increasingly looking for exclusive designs and premium craftsmanship rather than purchasing jewellery solely based on weight.

Indriya Expands Its Retail Presence

Launched in 2024, Aditya Birla Group's jewellery brand Indriya has expanded rapidly across India.

The company currently operates more than 81 stores across over 40 cities and plans to add another 40 outlets during the financial year 2027, reflecting its confidence in the long-term growth of the jewellery market.

To enhance the customer experience, the brand has also introduced a new in-store technology called Sparklescope, which allows buyers to examine the brilliance and sparkle of diamonds before making a purchase.

Focus Remains on Natural Diamonds

India's jewellery industry is witnessing growing interest in laboratory-grown diamonds, with several major brands entering the segment over the past year.

Despite this trend, Indriya has chosen to concentrate exclusively on natural diamonds.

According to Kohli, customers continue to place significant importance on a diamond's quality, including the internationally recognized 4Cs—Cut, Colour, Clarity, and Carat—while visual brilliance remains one of the most influential factors in purchasing decisions.

The company's latest technology has been introduced with the aim of helping customers better evaluate a diamond's sparkle and overall appearance before completing their purchase.

Outlook for the Gold Jewellery Market

Although higher import duties initially affected consumer sentiment, recent market activity suggests that demand is gradually stabilizing. The combination of easing prices, sustained cultural significance, and continued consumer confidence is helping India's jewellery market regain momentum.

For investors and jewellery buyers alike, gold continues to be viewed as a long-term store of value, while retailers remain optimistic that festive demand and wedding season purchases will support further growth in the coming months.

Disclaimer: This article is intended for informational purposes only and should not be considered financial or investment advice. Gold prices are subject to market fluctuations, and investment decisions should be made after consulting a qualified financial advisor.