India’s jewellery sector delivered a landmark performance on Gudi Padwa and Ugadi 2026.India’s spring festival season opened on a firm retail note this year, as Gudi Padwa and Ugadi—celebrated across Maharashtra, Karnataka, Andhra Pradesh and Telangana—drove jewellery demand even as bullion prices remained volatile. A sharp correction in gold prices on the festival day — with 24-karat gold declining by over Rs. 3,000 per 10 g to approximately Rs. 1,53,800 and silver falling over Rs. 5,300 per kg to Rs. 2,48,170 — created a compelling buying environment even as absolute price levels remained historically elevated.

The simultaneous celebration of Gudi Padwa (Maharashtra New Year), Ugadi (Telugu/Kannada New Year in Andhra Pradesh, Telangana and Karnataka) and Chaitra Navratri on March 19 created a multi-region, multi-community auspicious window that no national brand could afford to ignore. This convergence is structurally supportive of Gudi Padwa becoming a tier-two festive occasion after Diwali and Akshaya Tritiya for the jewellery sector.

Price correction fuels sentiment

The price softening helped revive consumer sentiment, particularly in western and southern India where these festivals traditionally mark an auspicious start to new investments.

According to estimates by the GJC, overall jewellery sales during the festive period rose about 10% in value terms compared with last year.

Strong value growth, mixed volumes

Industry leaders pointed to a divergence between value and volume growth, a trend increasingly visible in India’s jewellery consumption story.

“Overall, today turned out to be a very good day. In terms of value, it was more than 10% higher compared to last year,” said Rajesh Rokde, Chairman of GJC. “Last year, gold was around Rs. 88,500, whereas this year it has reached approximately Rs.1,48,000+. Similarly, silver has nearly doubled. This clearly indicates that over the long term, prices tend to rise, and customers are well aware of this.”

He added that despite intra-day volatility, “customers were very enthusiastic and there was strong buying sentiment,” aided by promotional offers from jewellers nationwide.

However, not all segments saw uniform growth. “The jewellery sales this Gudi Padwa saw a dip in volume as compared to last year. Value wise it was on par,” noted Nitin Khandelwal, CMD of Khandelwal Jewellers Akola. “The dip in gold prices is driving consumers to purchase gold jewellery. I see this momentum continuing to Akshaya Tritiya.”

Changing consumer behaviour

Retailers highlighted an ongoing shift in consumer preferences, driven largely by price volatility and evolving lifestyle choices.

“The Indian jewellery sector is undergoing a transition in terms of consumer consumption,” said Paul Alukkas, MD- Jos Alukkas. “Jewellery sales across stores have been neutral this Ugadi and Gudi Padwa. Due to ongoing geopolitical tensions resulting in volatility in gold prices, sales are not encouraging. ” He added that while gold retains its appeal as a store of value, “there is a pivot in choices made by consumers based on price fluctuation. The trend for lightweight, daily-wear jewellery and contemporary designs remains steady.”

Alukkas also pointed to rising interest in alternative categories: “We are giving focused attention to our silver range, with refined and contemporary designs appealing to modern women. Families are also planning purchases in phases due to price fluctuations.”

Regional strength and wedding demand

Gudi Padwa, marking the Marathi New Year, continues to be one of the most significant gold-buying occasions in Maharashtra, while Ugadi plays a similar role in the southern states.

“Gudi Padwa is a key gold-buying occasion in Maharashtra, and we are seeing strong customer participation with gold continuing to be the preferred choice,” said Saurabh Gadgil, CMD, PNG Jewellers. He noted that the timing of the festival—coinciding with the start of the wedding season—further supported demand. “Bookings have remained encouraging despite elevated prices, and the recent correction has strengthened buying sentiment. We are also seeing good traction in diamond jewellery and coloured gemstones.”

He expects “around 20% year-on-year growth in value terms, led by wedding-related demand ahead of Akshaya Tritiya, while volume growth may remain in single digits due to the sharp rise in gold prices.”

Price Correction as Purchase Catalyst

The intra-day gold price decline of over Rs.3,000 on March 19 acted as a powerful trigger rather than a deterrent. Consumers who had been monitoring prices in anticipation of the festival interpreted the correction as a timely opportunity. This ‘buy-the-dip’ behaviour on auspicious occasions is becoming a discernible pattern in the Indian bullion market, where festive timing intersects with investment logic.

Wedding Season Convergence

Gudi Padwa 2026 coincided with the onset of the April–June wedding season, creating compounded demand. Wedding jewellery, particularly bridal sets, mangalsutras and gifting pieces, drove a meaningful share of festival-day purchases and advance bookings. PNG Jewellers specifically cited wedding-related demand as a key contributor to their 38 per cent growth figure.

Diamond & Coloured Gemstone Traction

Several retailers reported strong traction in diamond jewellery and coloured gemstone categories, indicating that consumers are diversifying beyond gold even during traditional gold-buying occasions. This is consistent with industry trends showing studded jewellery growing as a share of revenues, aided by higher margins and off-season demand potential.

Value-Conscious Purchasing Patterns

Lightweight daily-wear designs and contemporary styles continue to gain share as consumers optimise their jewellery budgets under an elevated absolute price environment. The volume-value divergence observed in 2025 persisted into 2026, with rupee-value growth outpacing gram-weight growth at most retailers.

The Volume-Value Divergence

A key structural theme emerging from this festive season is the divergence between value and volume growth. While aggregate sales in rupee terms were up approximately 10 per cent year-on-year, gram-weight volumes were broadly flat to negative at many retailers. This reflects the mathematical reality of a 67 per cent increase in gold prices — the same rupee outlay now buys significantly less gold by weight.

Shift Towards Lightweight & Contemporary Designs

Multiple industry leaders noted a decisive shift in consumer preferences towards lightweight, daily-wear jewellery and contemporary designs, driven by price sensitivity. Consumers are optimising their budgets by choosing pieces that offer aesthetic appeal without committing large capital sums. This trend is structurally supportive for jewellers who can offer design diversity across price points.

Silver as a Beneficiary

The price differential between gold and silver is leading consumers — especially younger, urban women — towards refined silver jewellery. Several brands, including Jos Alukkas, have proactively expanded their silver collections. Silver’s own year-on-year price appreciation of approximately 138 per cent, however, may moderate this substitution effect if sustained.

Outlook: Momentum into Akshaya Tritiya

With Akshaya Tritiya approaching—another key gold-buying festival—the industry remains cautiously optimistic. The recent correction in gold prices has improved affordability at the margins, but persistent volatility and elevated price levels continue to shape consumer behavior.

The broader takeaway from this festive season is clear: while India’s deep-rooted affinity for gold remains intact, purchasing patterns are becoming more calibrated—favoring lighter designs, phased buying, and diversification into silver and studded jewellery.

The underlying sentiment remains resilient: customers understand that “over the long term, prices tend to rise”—a belief that continues to anchor gold’s enduring appeal in Indian households.