National News
Gold Jewellery Value Set to Rise 12–14% in FY26 Despite Volume Decline- ICRA
Driven by rising gold prices and retail expansion, India’s gold jewellery market will grow in value even as consumption volumes fall for a second consecutive year
India’s domestic gold jewellery consumption is expected to grow by 12–14% in value terms in FY2026, according to a new report by ICRA, even as consumption volumes are projected to decline for a second year in a row. This value growth is largely attributed to continued gold price appreciation, expanded retail presence, and increasing market consolidation in favour of organised players.
“This will be supported by continued gold price appreciation, planned retail expansion, and market share gains from the unorganised segment. A higher number of auspicious days in the fiscal is also expected to lend some support to demand, despite elevated prices and declining volumes,” said Jitin Makkar, Senior Vice President and Group Head, ICRA.
In FY2025, gold jewellery consumption by value jumped 28%, spurred by a 33% surge in gold prices. A similar trend is anticipated in FY2026, with gold prices already trading about 20% higher than the FY2025 average. However, consumption volumes are expected to fall by 9–10% in FY2026, following a 7% decline in FY2025.
The report also highlights a notable shift in investor behaviour, with demand for gold bars and coins increasing 17% and 25% in FY2024 and FY2025, respectively. This reflects a growing preference for gold as a safe-haven asset amid global geopolitical and economic uncertainty. ICRA expects this demand to rise by another 10% in FY2026, with bars and coins projected to account for 35% of total gold demand.
Jewellery retailers may also see a modest improvement in profitability. Operating margins are forecast to expand by 30 basis points to 7.2% in FY2026. However, net margin growth is likely to remain limited, constrained by higher financing costs linked to elevated Gold Metal Loan (GML) rates and increased working capital needs due to high gold prices and planned store expansions.

“Despite a projected 30 bps expansion in operating margins in FY2026, net margin expansion will remain limited within 10 basis points due to higher financing costs stemming from elevated GML rates and increased working capital borrowings driven by high gold prices and planned store additions,” Jitin Makkar added.
National News
India Gold Conference 2026: India Gold Vision: Recycle, Reform & Re-Innovate
The future of India’s gold market, the conference made clear, will depend not merely on how much gold India owns, but on how efficiently that gold can be recycled, monetised and put to productive use.
The India Gold Conference (IGC) 2026, held in Goa under the theme “India Gold Vision: Recycle, Reform & Re-Innovate,” brought together policymakers, regulators, bullion banks, refiners, exchanges and jewellery-industry leaders to examine how India can build a more efficient, transparent and technology-driven gold ecosystem.
The inaugural session was graced by presence of Guest of Honour Richa Goel Agarwal, Chief General Manager, SEBI along with Sachin Jain, Regional CEO – India, World Gold Council , Prithviraj Kothari, National President, IBJA, Rajesh Rokde, Jignesh Shah, Mentor and Coach, IGM, Chairman-GJC, Samit Guha, MD- & CEO, MMTC-PAMP, Shivanshu Mehta, Head- Bullion and Chief Business Officer- MCX. Representing the organizer Eventell Global Advisory was Srivatsava Ganapathy, Director & CEO.
The panel sessions at India Gold Conference 2026 covered the key structural and strategic priorities shaping India’s gold market. Some of the sessions were: Making GMS Work, Strengthening Trade with Dubai Bullion Market, Exchange-based Spot Trading in Bullion, Meeting All Our Requirements for Jewellery Demand from Buy-Back of Old Gold Jewellery, Import Substitution Opportunities in Gold Investment Demand, and AI Use Cases in the Bullion Business.
A key focus was the future of the Gold Monetisation Scheme (GMS) and its potential to mobilise India’s large above-ground gold holdings, reduce dependence on imports and help contain the current account deficit (CAD).

Making GMS Work
An expert panel agreed that the GMS needs greater participation from the jewellery trade if it is to achieve meaningful scale. The discussion highlighted the role of RBI, SEBI and industry bodies in shaping the modified GMS and stressed the need to make gold deposits more liquid, transferable and commercially useful.
Among the proposals discussed was the possibility of tokenising GMS holdings, allowing investors greater liquidity and transferability. Converting GMS holdings into Electronic Gold Receipts (EGRs) could also enable gold to be used as collateral for borrowing.
However, taxation remains a significant concern for deposit-taking institutions, with the panel noting that uncertainty around tax treatment continues to act as a deterrent to wider participation.
Technology at the Core
The conference placed strong emphasis on technology as an enabler of gold-market reform. In his keynote, Jignesh Shah, Mentor & Coach, India Gold Metaverse, argued that traceability, transparency and trust must be integrated through technology.
He highlighted blockchain, asset fractionalisation and digital platforms as potential tools to broaden retail participation and create new avenues for gold investment, while also envisioning India as a potential leader in gold-backed financial ecosystems.


GoldSense™ Launched
IGM also unveiled GoldSense™, an AI-powered enterprise solution designed for non-destructive gold verification. The portable karatometer is designed to assess gold to depths of up to 7 mm, using AI-driven analysis without damaging the asset or relying on harmful X-ray radiation.
Priced at Rs 5 lakh per unit, the technology is positioned as a tool for more standardised, connected and data-driven gold evaluation.
Building a Spot Gold Market
Another major discussion centred on exchange-based spot trading in bullion. Industry leaders stressed that a liquid spot market is essential to modernise India’s bullion ecosystem, strengthen price discovery and support the country’s growing digital-gold market.
The panel also called for policy changes, particularly addressing double GST taxation and GST offset mechanisms. Collaboration between IBJA and IGM was cited as part of ongoing efforts to strengthen spot-price discovery.



Recycling Gold to Meet Demand
The conference also examined the potential of old-gold buybacks to meet a greater share of India’s jewellery demand without relying entirely on fresh imports. Gold recycling was positioned as a critical component of India’s long-term strategy to improve supply security and reduce import dependence.
Sessions additionally explored gold leasing, import substitution in investment demand, electronic gold receipts, Dubai bullion-market linkages and AI applications in bullion businesses.

The Bigger Picture
The discussions at IGC 2026 underscored a broader shift in India’s gold policy—from simply managing imports towards building a formal, liquid, technology-enabled and recyclable gold ecosystem.
For the GMS to fulfil its original promise, however, the message from the conference was clear: participation must extend beyond banks to jewellers and consumers, while liquidity, taxation, transferability and technology must be addressed together.
If these structural barriers are resolved, monetising India’s existing gold stock could become an important source of domestic supply, reduce reliance on imports and contribute to a more efficient gold market—and potentially help moderate the country’s CAD.
The future of India’s gold market, the conference made clear, will depend not merely on how much gold India owns, but on how efficiently that gold can be recycled, monetised and put to productive use.
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