ICRA: India Gold Jewellery Demand to Surge in FY23

SEATTLE (Scrap Monster): ICRA Ratings, in a recent report, said that it expects the gold jewellery consumption in India to witness 11% growth during the current financial year due to robust retail performance last year.

The gold jewellery demand in FY23 is forecast to be around 40% higher than the levels seen during FY20. The first quarter FY23 demand is expected to record a healthy growth by 45% year-on-year, due to anticipated strong demand during the current Akshaya Tritiya season. The steady wedding and festival purchases of the yellow metal by Indian consumers will also keep the FY23 demand at elevated levels, said Jayanta Roy, Senior Vice President and Group Head-ICRA.

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The revenues of organized jewellery retailers are likely to grow at a faster pace of 14%, driven by aggressive store expansion plans and the visible shift in preference from the unorganized sector towards an organized one.

The ICRA report further states that revenues are expected to grow at a steady pace of 14%, driven by anticipated store expansions. As per rough estimates, the pace of store additions is likely to gain further momentum in the coming quarters. Over the next one-year period, the total retail store count is expected to increase by more than 10%. The margins of organized retailers are expected to stabilize at around 7-7.5% over the medium term.