Connect with us

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

Published

on

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.

Continue Reading
Advertisement JewelBuzz Banner
Click to comment
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted

National News

Kerala Chief Minister’s Presence Marks Grand Finale Of KJIF 2026 As State’s Jewellery Industry Charts New Growth Vision

Three-Day B2B Fair Concludes With Record Participation, Strong Business Momentum and Unprecedented Government Support.

Published

on

The fifth edition of the Kerala Jewellery International Fair (KJIF) 2026 concluded on an exceptional note, reinforcing Kerala’s position as one of India’s most influential jewellery markets. Organised jointly by the Kerala Gold & Silver Merchants Association (KGSMA) and United Exhibitions, the three-day B2B exhibition witnessed remarkable business activity, record industry participation, knowledge-sharing initiatives and an unprecedented level of government engagement.

The grand finale of the exhibition was marked by the Kerala Jewellers State Convention, where Hon’ble Chief Minister of Kerala, Shri V. D. Satheesan, addressed an audience of more than 5,000 jewellers, manufacturers, retailers, industry leaders and stakeholders from across the state. His presence elevated the stature of the convention and reaffirmed the Government’s recognition of Kerala’s jewellery sector as a vital contributor to the state’s economic development.

In his keynote address, the Chief Minister acknowledged Kerala’s longstanding leadership in the gold and diamond industry, describing the sector as a major driver of employment, entrepreneurship, exports and wealth creation. He highlighted the industry’s resilience, craftsmanship and global reputation while encouraging greater adoption of technology, innovation, responsible business practices and international competitiveness. Expressing confidence in Kerala’s jewellery fraternity, he called upon the industry to continue playing a transformative role in shaping the state’s economic future.

The State Convention also provided an important platform for meaningful interaction between policymakers and industry leaders, facilitating discussions on the future of the jewellery trade, sustainable growth, evolving consumer expectations and policy support required to strengthen one of Kerala’s most vibrant business sectors.

Distinguished Dignitaries Throughout the Three-Day Event

KJIF 2026 witnessed the participation of several eminent dignitaries throughout the exhibition, reflecting the growing importance of the jewellery industry within Kerala’s economic landscape.

The exhibition was formally inaugurated by Shri P. C. Vishnunadh, Hon’ble Minister for Tourism and Culture, while the official unveiling of KJIF 2026 was performed by Shri P. K. Kunhalikutty, Hon’ble Minister for Industries, IT & AI, who appreciated the exhibition’s contribution towards promoting business, manufacturing excellence and industrial growth.

The inaugural evening concluded with the spectacular KJIF Fashion Nite & Gala Dinner, graced by Shri Roji M. John, Hon’ble Minister for Higher Education, who interacted with industry members and appreciated the creativity and craftsmanship displayed by exhibitors.

On the second day, Smt. Shanimol Usman, Hon’ble Deputy Speaker of the Kerala Legislative Assembly, visited the exhibition and commended the industry’s continuous contribution towards employment generation and entrepreneurship.

Day 2 concluded successfully with the presence of Shri Ramesh Chennithala, Hon’ble Minister of Home Affairs and Vigilance, who shared his memories of interacting with Malayalee karigars across other states and stressed the importance of bringing that employment and craftsmanship back to Kerala while developing the state into India’s jewellery export hub.

The exhibition concluded with the Kerala Jewellers State Convention, where Hon’ble Chief Minister Shri V. D. Satheesan delivered the valedictory address, making the closing ceremony one of the most memorable moments in the history of KJIF.

Alongside the Chief Minister, Shri Benny Behnan, Hon’ble Member of Parliament, Shri Roji M. John, Hon’ble Minister for Higher Education, KGSMA State President Shri K. Surendran, State General Secretary Adv. S. Abdul Nazar, State Treasurer Shri C. V. Krishna Das, Shri V. K. Manoj, Project Director of United Exhibitions, Shri Varghese Alukka, Managing Director of Jos Alukkas Jewellery, along with the Vice Presidents and Secretaries of KGSMA, were present on the dais.

Outstanding Business Response

KJIF 2026 recorded an overwhelming response from jewellery retailers and trade buyers from every district of Kerala. The exhibition witnessed a strong influx of quality business visitors, resulting in productive interactions between exhibitors and buyers.

Exhibitors expressed high levels of satisfaction with the quality of footfall, reporting encouraging order enquiries, advance festive bookings and significant business generated across gold, diamond, bridal and contemporary jewellery collections. The exhibition once again established itself as Kerala’s most preferred sourcing platform ahead of the festive and wedding seasons.

Knowledge-Driven Industry Engagement

Beyond business, KJIF 2026 continued its commitment to industry development through a series of well-attended knowledge sessions.

The Banking Seminar brought together leading financial institutions and jewellery entrepreneurs to discuss banking solutions, working capital support, digital banking and financial best practices.

The seminar titled “Jewellery Business for Today & Future” featured eminent industry experts who shared valuable insights into changing consumer behaviour, organised retail, digital transformation, branding strategies and emerging opportunities within the jewellery sector.

The Youth Wing Seminar focused on preparing the next generation of jewellery entrepreneurs through discussions on leadership, succession planning, innovation and business sustainability, inspiring young professionals to take the industry forward.

Fashion Walk Adds Glamour to Opening Day

Adding elegance and excitement to the inaugural evening was the Fashion Walk Powered by Malayala Manorama, which presented exquisite jewellery collections through a professionally curated runway showcase. The event beautifully blended craftsmanship with contemporary design, providing participating exhibitors an exclusive platform to unveil their latest collections before Kerala’s leading retailers and industry professionals.

KJIF Strengthens Its Position as South India’s Premier B2B Jewellery Exhibition

The overwhelming response from exhibitors, visitors, trade associations and business partners reaffirmed the Kerala Jewellery International Fair as one of South India’s most influential B2B jewellery exhibitions.

By successfully integrating business networking, government participation, knowledge exchange and premium lifestyle experiences under one platform, KJIF 2026 once again demonstrated its commitment to strengthening Kerala’s jewellery ecosystem and creating new opportunities for manufacturers, wholesalers and retailers alike.

With record participation, strong business outcomes, impactful industry discussions and the distinguished presence of the Hon’ble Chief Minister of Kerala, KJIF 2026 concluded on a historic note, setting new benchmarks for the jewellery industry and paving the way for an even stronger, more innovative and globally competitive future for Kerala’s gold and diamond sector.

The next edition of the Kerala Jewellery International Fair (KJIF) will be held from 2nd to 4th July 2027.

Continue Reading

Trending

JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

We would like to hear from you...

GET WHATSAPP NEWS ALERTS

0
Would love your thoughts, please comment.x
()
x