Jewelers will get a big blow! Amid skyrocketing prices of gold, jewelery sales will decline by 15% this year, big report comes

New Delhi: If you too are thinking of buying gold or getting heavy jewelery made for your wedding, then this news is for you only. The impact of continuously rising gold prices and increase in import duty by the government is now clearly visible on the jewelery business of the country. According to a new and shocking report by rating agency CRISIL Ratings, there may be a huge decline of 13 to 15 percent in the sales of gold jewelery in the current financial year. Due to expensive gold, common people are now staying away from buying jewellery, due to which jewelers are worried.

This inflation is also affecting the choice of customers. People are now turning towards light weight and low carat jewelery instead of heavy jewellery. However, one aspect of this whole picture is that even though the sale of jewelery is decreasing, due to high prices, the coffers of the jewelers are not going to remain empty and their hope of earning big money is still there.

Prices reached record high, custom duty increased further trouble

CRISIL’s report clearly states that gold prices have currently reached their record level. On top of this, the government has recently increased the custom duty on gold from 6 percent to 15 percent. After this government decision, gold jewelery has become beyond the reach of the common man i.e. extremely expensive, which is having a direct impact on the pockets of the customers and their purchasing power.

However, you will be surprised to know that despite the decline in sales volume, jewelers’ earnings are expected to increase. The main reason for this is the high prices of gold. If we look at the data of the report, the revenue of organized jewelers may increase by 20 to 25 percent in this financial year. This means that even after reduced sales, profits will remain intact on the basis of expensive gold.

Avoid heavy jewellery, now the craze for light and low carat jewelery has increased.

Due to the huge inflation of gold, a big change is now being seen in the trend of the customers. Now people are showing wisdom in buying light weight and low carat jewelery items instead of heavy jewelery during weddings or festivals. At present, a huge surge is being seen in the demand for 16 to 22 carat jewelery and studded jewelery in the market.

On the other hand, in terms of investment, people are now showing more interest in buying gold bars and gold coins instead of jewellery. This is the reason why within the last two years, there has been a huge increase of more than 50 percent in the total sales of gold bars and coins in the country.

India broke record imports, government took strict steps

According to the report, in the last financial year 2026, India had imported about 720 tonnes of gold, due to which a huge foreign exchange worth 72 billion dollars went out of the country. Considering this burden on the country’s economy and foreign exchange reserves, the government has taken the strict step of increasing custom duty to reduce gold imports.

Market experts believe that due to these high prices and increased import duty, the total sale of gold jewelery this year may come down to only 620 to 640 tonnes. If this happens, this level will be considered the lowest in the last decade. However, to survive in the market, big and organized jewelers are now rapidly expanding their presence in smaller cities through the franchise model. This will increase their reach in rural and semi-urban areas, which can provide some support to their business in this period of recession. But overall, in the coming time, the fluctuations in gold prices and the policies of the government will decide the real direction of this entire jewelery sector.