GLITTERING GIANTS

From family jewellers to organized giants, India's gold market is getting a modern shine

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Gone are the days when jewellery shopping was simply about honouring an old family connection with a trusted local jeweller.

Today, India's jewellery sector has undergone a noticeable transformation. Over the past three years, the industry has become significantly more organized. This transformation has been driven by three key elements: regulatory reforms, changing consumer behaviour, and the growing dominance of organized players. Let us explore these elements in greater detail.

CUSTOMS DUTY IMPACT

One of the most important reforms in recent years is the government's decision to reduce customs duty on gold imports. In the past, high import duties kept gold prices in India well above global benchmarks. This price gap encouraged smuggling, which supplied a significant share of the market. By cutting customs duty, policymakers have narrowed the gap between global and domestic prices and ensured that gold flows through legitimate supply routes.

This policy shift offers several advantages. Lower customs duty allows jewellers to source gold at more competitive rates, directly benefiting consumers through better pricing. Standardized pricing also improves transparency across markets, reducing regional price discrepancies. Additionally, lower procurement costs ease the working capital pressure on retailers. Experts note that organized jewellers benefit the most, as reduced customs duty enhances their margins while enabling them to offer competitive jewellery products.

Reduced smuggling also boosts tax collection. For the government, improved traceability of the gold supply chain enhances transparency across the sector. For consumers, this translates into better quality assurance and stable pricing. Experts believe that such reforms significantly strengthen the credibility of organized jewellers in India.

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