Hyderabad: With around 6 to 7 per cent of increase in the first quarter of 2024, the Indian gold market has shown remarkable growth, translating to a market value of approximately Rs 75,000 crores, up by around Rs 10,000 crores in the same quarter last year. According to the experts, jewellery consumption in India witnessed a 3 to 4% increase, while bars and coins experienced significant growth with a 19 per cent increase in volume, translating to a 32 per cent increase in value. The Reserve Bank of India has been a substantial buyer, purchasing 19 tons of gold in the first quarter alone, which was 16 tons in the previous year.

The retail sales of gold, despite high prices, showed resilience, particularly during festive season, one of the most successful in recent years, indicating strong consumer confidence. India's gold consumption is projected to remain robust in 2024, estimated between 700 to 800 tons. Notably, South India is speculated to be a major contributor in the consumption of gold.

The market performance, firmly supported by the industry efforts in enhancing transparency and consumer trust by implementing BIS hallmarking and the establishment of a self-regulatory organization.

The experts speculate that India's economic growth trajectory, aiming to transition from a developing to a developed economy by 2047, further underscores the promising future of the gold industry, making it fertile ground for continued growth and innovation.

Yogesh Mudras, MD of Informa Markets in India, stated, “The Gems and Jewellery industry in India, deeply rooted in our cultural heritage, is a vital economic force. It plays a key role in both consumption and export, with 15 per cent growth in the FDI equity inflows reaching US Dollar 25.50 million in 2022-2023.”

“Employing over 5 million individuals, this sector significantly contributes to the employment landscape. South India, with its substantial 40 per cent share in gold jewellery demand, is a major player, supported by both organized retail and an extensive network of traditional goldsmiths,” Mudras said at 16th edition of the Hyderabad Jewellery Pearl & Gem Fair in Hyderabad.