Gold and Jewelry Sales Rise in India Despite Government Warnings
Despite government calls to reduce gold purchases and tax increases in India, jewelry sales reached $21 billion in the second quarter of the year.
Despite Indian Prime Minister Narendra Modi's calls for citizens to postpone gold purchases and the increase in customs duties, the demand for precious metals and jewelry in the country has continued unabated.
Government Calls Went Unheeded
Indian Prime Minister Narendra Modi had asked citizens in May to postpone their gold purchases, and during the same period, the customs duty on gold imports was raised to 15 percent.
Making a similar warning last week, Modi called on citizens not to buy gold unless necessary, yet consumer interest in the precious metal continued uninterrupted.
Sales Reached $21 Billion
According to Financial Times data, India single-handedly accounts for approximately one-third of global gold jewelry demand.
According to World Gold Council data, jewelry sales in the country increased by approximately 30 percent year-on-year in the second quarter of the year, reaching $21 billion.
Company Profits and Stock Performance
Titan, the country's largest jewelry retailer, saw its profit increase by 63 percent in the last quarter, along with a notable rise in customer footfall in stores.
Titan, which holds approximately 10 percent of the fragmented jewelry market, drew attention in the markets as its shares gained about 25 percent this year.
Global Expansion Plans
Titan took steps to grow internationally by acquiring a majority stake in the Middle East-based jewelry company Damas.
The company management plans to open new stores, particularly in North America and Middle Eastern countries where the Indian diaspora is dense.