High Gold Prices Are Changing How India Buys Jewellery

When gold becomes expensive, consumers may shift toward lighter jewellery and formal retailers, changing volumes, margins, and market-share dynamics across India. Gold has become increasingly expensive for Indian consumers. With import duty rising from 6% to 15% and 3% GST adding to the purchase cost, some buyers are looking for ways to reduce the final bill. A recent report highlighted discounts of up to 6% on some bulk, cash-based purchases without invoices. This creates a difficult environment for compliant jewellers because the formal channel carries taxes, documentation and regulatory costs that unofficial transactions may avoid. But there is another side to the story. When gold becomes expensive, customers can buy lighter jewellery, reduce quantities or increasingly prefer established retailers where purity, hallmarking, billing and after-sales services are visible. Recent industry reporting has already pointed to consumers shifting toward lighter jewellery as prices climbed. One listed company to watch in this changing jewellery landscape is Titan Company Ltd.

Its jewellery business operates through the Tanishq brand and participates in the organised jewellery market. The bigger lesson is simple: when the price of a product changes dramatically, consumer behaviour changes with it and that can reshape competition between formal and informal markets.