Gold Demand Shifts as Indians Opt for Lighter, More Affordable Pieces

Despite Prime Minister Narendra Modi's appeal to Indians to avoid non-essential gold purchases, retailers are seeing stronger demand for lighter, everyday, and studded pieces. The underlying appetite for festive and wedding jewellery remains intact, but consumers are altering their spending habits.

Jewellers report that younger buyers, particularly Gen Z and millennials, account for 86% of the natural diamond jewellery market by value. This demographic is increasingly looking beyond heavy, occasion-only sets towards lightweight designs, diamonds, and platinum. In fact, 52% of acquired diamonds are now worn every day, up from 27% in 2014.

CaratLane's Chief Marketing Officer Shaifali Gautam said consumers are buying jewellery more frequently and personally rather than waiting for weddings or major occasions. Lightweight designs, 14KT and 9KT gold, and studded jewellery are seeing strong demand. At Kalyan Jewellers, consolidated revenue in Q1 FY27 rose 38% excluding bullion to ₹10,589 crore.

India's gold imports touched a record $71.98 billion in FY26, up 24% from the previous year. Retailers do not expect Modi's appeal to derail festive jewellery demand, as weddings and gifting are seen as non-discretionary purchases in India.