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.
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%+ decline; jewellers see consumers downtrading to lightweight, lower-carat pieces.
Why this matters
Joyalukkas's 35%+ sales drop mirrors the sector-wide 70% gold demand crash flagged after India doubled import duty to 15%, signalling acute footfall stress at jewellery counters.
Footfall theme steady at 81 signals in 90 days, but jewellery counters now showing sharp downside divergence.