India's Festive Gold Sales Forecast a 10-12% Dip Amid Price Surge

India's gold demand is expected to decline by 10-12% during the festive season, following Prime Minister Narendra Modi's appeal for consumers to buy gold only when necessary.

The surge in gold prices over the past year has made traditional festive purchases more expensive, prompting consumers to reconsider their spending. Gold prices have risen from ₹11,100 per gram in September 2025 to nearly ₹15,500 per gram as of September 2026, a nearly 39% price increase.

Despite the expected volume drop, listed jewellery retailers are relying on value-driven growth to protect their topline. Companies like Senco Gold & Diamonds are targeting revenue growth of over 25% for the current financial year, driven by price increases and strategic shifts in what customers buy.