The domestic jewellery retail industry, in value terms, is expected to grow at 10-12 per cent during the current financial year on the back of elevated gold prices, credit rating firm ICRA said in a report.
In the last financial year, the industry had grown by more than 15 per cent.
ICRA said that demand volumes remained stable in the current festive season despite higher prices.
The research firm said organised jewellery retailers are expected to outperform the industry over the medium term, driven by planned retail expansion and tailwinds from the accelerated formalisation of the trade.
After remaining volatile between December 2022 to April 2023, gold prices were relatively stable in the range of Rs 5,600 to Rs 5,700 per gram in the first half of the current fiscal.
This was almost 14 per cent higher as compared to the price levels in the preceding first half.
The rating firm said the elevated price levels supported the revenue expansion of most jewellery retailers in the face of muted volume growth on a high base and persistent inflation.
It also projected that the jewellery industry to grow by 6-8 per cent year-on-year in the second half of the current fiscal due to stable demand.
