Indian Gold Demand Defies Modi's Calls for Cutbacks

India's jewellery demand remains resilient despite Prime Minister Narendra Modi's calls to limit purchases and the government's decision to raise the import duty on gold to 15 per cent, according to recent reports.

Titan Company, India's largest jewellery retailer and part of the Tata Group, reported a 63 per cent year-on-year rise in profit in the latest quarter, alongside an increase in store footfall. The company's Managing Director Ajoy Chawla said that the impact of the government's measures had not been sustained for long, with consumers continuing to view gold as a store of value and demand remaining influenced by expectations around gold prices.

The World Gold Council reported strong quarterly performances from major listed jewellery companies, with revenue growth of 30 per cent to 60 per cent, supported by festivals and the wedding season. Indian gold jewellery sales rose by about one-third year-on-year to US dollar 21 billion in the June quarter.