Gold Shining Bright: ICRA Forecasts 12-14% Growth in Jewellery Sales for FY26
India’s jewellery industry is set for a glittering year ahead. According to a recent report by ICRA, jewellery sales in the country are projected to rise by 12-14% in FY26, driven by stable gold prices, increased demand during festive seasons, and expanding retail footprints across Tier-II and Tier-III cities.
Key Highlights of the ICRA Report:
Sales Growth: The industry is expected to see a double-digit growth rate, signaling strong consumer confidence and market stability.
Retail Expansion: Major jewellery brands are aggressively expanding into smaller cities, enhancing accessibility and customer engagement.
Stable Gold Prices: Moderation in gold price volatility is encouraging buyers to invest in gold jewellery, particularly during weddings and festivals.
Consumer Trends: Rising disposable income and increasing preference for branded jewellery are further propelling demand.
Market Outlook
The Indian jewellery sector, which accounts for a significant portion of global gold demand, is bouncing back after facing temporary slowdowns. FY25 is already witnessing recovery trends, setting the stage for a more robust FY26.
With a cultural affinity for gold and an evolving customer base that values craftsmanship and authenticity, India’s jewellery industry is poised for consistent long-term growth.
Retailers are also leveraging digital platforms to reach younger consumers who prefer online research before making offline purchases. Additionally, transparency in pricing and hallmarking regulations are boosting buyer confidence.
Why Is Jewellery Demand Rising?
Several factors are contributing to this upward trend:
Weddings & Festivals: The ongoing wedding season and major festivals like Diwali are major sales drivers.
Return of Urban Shoppers: Post-pandemic, footfalls in physical jewellery stores have significantly increased.
Brand Loyalty: Consumers are shifting towards trusted brands offering certified and hallmarked gold.
Innovative Offerings: New-age jewellery designs, lightweight collections, and customisation are appealing to the millennial and Gen Z audience.
FAQ: Jewellery Sales Growth in FY26
1. What is the expected growth in jewellery sales for FY26?
ICRA has projected a 12-14% increase in jewellery sales in India during the financial year 2025-26.
2. What factors are driving this growth?
Key factors include stable gold prices, festive and wedding season demand, retail expansion, and a preference for branded, hallmarked jewellery.
3. Will gold prices remain stable in FY26?
ICRA suggests gold price volatility will likely remain under control, aiding stable buying patterns.
4. Are smaller towns contributing to the growth?
Yes, Tier-II and Tier-III cities are becoming key contributors as jewellery chains expand their footprint in these regions.
5. How is technology influencing jewellery sales?
Digital engagement, virtual try-ons, and social media marketing are helping brands connect with a younger audience, increasing both online and offline conversions.
Published on : May 29, 2025
Uploaded by : PAVAN