Jewellery industry grapples with grim outlook ahead

Wed May 20 2026

A sharp decline in gold purchases following Prime Minister Narendra Modi’s appeal to postpone buying gold for a year, coupled with the recent hike in gold import duty, has triggered a severe slowdown in the jewellery industry. Traders across Bengaluru and

several other cities say the impact has been immediate, with jewellery showrooms witnessing empty counters, falling sales and mounting fears of job losses among workers linked to the sector.

The gold and jewellery industry, considered as one of India’s largest employment generators, supports nearly one crore jobs directly and indirectly, according to trade bodies such as the Gem and Jewellery Export Promotion Council (GJEPC) and the All India

Gem and Jewellery Domestic Council (GJC). From artisans and polishers to wholesalers, transport workers and retail staff, thousands now face uncertainty as business activity weakens sharply.

Jeweller Narayanachari said workers in the industry are already struggling due to a steep fall in wholesale orders. He noted that reduced demand has severely affected craftsmen and labourers who depend on daily production work for their livelihood.

Another jewellery retailer, Sunil Achari, said, “The slowdown has hit the trade harder than expected.” He pointed out that rising gold and silver prices have forced consumers to cut back drastically on purchases. According to him, people who earlier bought around 30 grams of gold are now limiting purchases to nearly half that quantity. Even silver items, once commonly bought as gifts during weddings and celebrations, are seeing weak demand, while sales of necklaces and other gold ornaments have reportedly dropped to nearly 20 per cent of previous levels.

Jewellers in Bengaluru estimate that the gold and silver trade has declined by nearly 30 to 40 per cent in recent weeks. Retailers say showrooms that would normally remain crowded during the wedding season are now witnessing very few customers. Similar conditions are being reported from several major cities, where even well-known jewellery brands are struggling with poor footfall.

Industry insiders also attribute the slump to the timing of the traditional Hindu calendar. The wedding season is nearing its end. From May 17 to June 15, the ‘Adhik Maasa’ period is observed, followed by the Ashada month from July 14 to August 12. Both periods are generally considered inauspicious for weddings and major ceremonies. Since there are very few auspicious dates for celebrations until late August or September, many families are reportedly postponing jewellery purchases for the next few months.

Amid soaring prices, buyers are also increasingly turning towards lower-carat jewellery. Traders say demand for 9-carat gold ornaments has started rising as consumers search for more affordable alternatives. Jewellers explained that 9-carat gold, made by blending pure gold with metals such as copper, silver and zinc, is significantly cheaper and more durable than traditional 22-carat jewellery. Simpler designs and lower pricing are making these ornaments more attractive to budget-conscious families, particularly for bridal purchases and gifting.

Source: https://bangaloremirror.indiatimes.com