As the central government reduced the customs duty imposed on the import of gold and silver in the central budget, people started flocking to the jewelry shops to buy gold. Not only in Chennai, Coimbatore, and madurai but the same situation in all parts of the country. At the same time, the next few months will be the festive season like the wedding season and diwali, so people have started rushing to jewelry stores to take advantage of the fall in prices and buy gold in advance. Also, due to the sudden increase in demand for gold in india due to the tax cut, there are fears that excess gold will be imported from abroad, thereby widening the government's current account deficit. According to jewelers, there is fear among the people that the central government will increase the tax again.
In india, the world's second-largest gold-consuming market, people have been flocking to jewelery shops since tuesday night as gold prices fell. Since the price of gold has reached Rs.74,000 per 10 grams in the last six months, it has become unaffordable, and they have stepped into the field to take advantage of this price reduction. Jewelers have even canceled the holidays of jewelry workers as the daily demand for gold in the indian retail market has increased by up to 20% after the cut in customs duty in the central government budget. Jewelers expect this growth to continue till this diwali season..jpg)
And jewelers expect a 20% increase in demand this quarter. The first major purchase is also expected to take place during the Raksha Bandhan festival in the second week of August. In the last june quarter, gold jewelry sales were markedly lower by 15% due to higher prices. Jewelers said customers are placing orders for heavy jewelry for weddings in november and December, and bookings for jewelry for diwali and Dhanathrayas have also started. Also following the reduction in customs duty, jewelers have introduced new booking schemes and additional offers on bookings to capture new and excess customers. Kumar Jain, the owner of Umetmal Tilok Chand Zaveri jewelry shop in Zaveri Bazaar, Mumbai's famous gold jewelry trading area, said, "To meet the sudden increase in demand for gold jewelry, we have canceled the holidays of our goldsmiths for the next seven days."
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