Now, jewellers bank on Akshaya Tritiya

India’s bullion market, after the slump following the hike in import duty, is now banking on the festival season to cash in on jewellery demand.

With Indian economy set to grow above 8 per cent in the coming financial year, jewelers are hoping that middle class will have more disposable income with them and they will come back to jewellery shops.

So, bullion markets across India are now waiting for the May 16 Akshaya Tritiya festival, an auspicious occasion to purchase the yellow metal for Indians.

According to market analysts, gold jewellery business is expected to gain around 30 per cent this Akshaya Tritiya.

While gold prices have more or less stabilised at Rs 16,500-17,000 per 10 gm, the consumer confidence to buy jewellery has also improved in India.

The rise in customs duty is just Rs 100 per 10 gm and will not have much impact on domestic demand. The government had raised customs duty on gold and platinum to Rs 300 per 10 gm from Rs 200 per 10 gm in the Union Budget.

Overall Indian jewellery market is likely to grow by 10-12 per cent, while in the southern region, growth is expected to rise by up to 25 per cent.

Meanwhile, preparing for the festive season, which will begin with ‘Akshaya Tritiya’, the South India Jewellery Show is organising a three-day business-to-business exhibition from March 20.

It is expected to see participation from 1,000 retailers from across the country, predominantly from South India.

The show will organise training programmes and seminars on diamond grading and new jewellery trends so that retailers are well prepared before the festive season.

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