Page 8 - Bullion World Volume 02 Issue 08 September 2022

Bullion World | Volume 2 | Issue 09 | September 2022

Jewellery demand to

contract in Q2 and Q3;

FY2023 growth seen at ~10% YoY

ICRA estimates jewellery demand Q3 FY2022, following the post-
in India to contract in Q2 and Q3 pandemic reopening of the economy
of FY2023 on the back of tepid and the substantially high demand
demand conditions due to factors in the wedding and festive seasons
including the recent hike in import in FY2022. Nonetheless, overall
duty on gold, high volatility in prices industry is expected to grow by a
and lower disposable incomes in moderate ~10% YoY in FY2023 on
the hands of the consumers due to the back of strong performance in
inflationary pressures. While demand Q1 FY2023 and steady demand in
is likely to contract by ~8% YoY in wedding and festive season in the
in the second quarter of the current current fiscal. Within the jewellery
fiscal year 2022-23 (Q2 FY2023), retail industry, the revenue of
the contraction is expected to be organised retailers is likely to grow
higher at ~15% in Q3 FY2022 due at a higher pace of ~14% YoY in
to the extraordinarily high base of FY2023, driven by continued store

Mr Vipin Jindal
Assistant Vice President &
Sector Head, ICRA

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