Synopsis
Consumers are rushing to buy bridal jewellery across India. This surge follows Prime Minister Narendra Modi’s call for austerity measures. Jewellers report a significant increase in sales. Customers fear higher import duties or GST on gold. Many are advancing purchases planned for later in the year. This buying frenzy is driven by uncertainty and cultural significance of gold.
ReutersKolkata: Panic buying of bridal jewellery has started across India after Prime Minister Narendra Modi asked consumers to avoid buying gold for a year as part of austerity measures to mitigate the effects of the Gulf war on the Indian economy.
Jewellers said customers are rushing to buy ornaments before any policy changes ahead of the wedding season that starts in June and will continue until the middle of August. Sales are mostly driven by fears of higher import duties, an increase in goods and services tax (GST), or tighter restrictions on gold purchases.
“In the last two days, sales of bridal jewellery are up 15%-20% compared with average daily sales,” said Rajesh Rokde, chairman of the All India Gem & Jewellery Domestic Council.
On average, daily sales for large jewellery chains can touch about ₹25 lakh per store, while mid-sized jewellers typically see ₹15 lakh to ₹18 lakh in daily sales, industry executives said.
