India's Jewellery Market Shifts Towards Higher-Value Items Amid High Gold Prices

India's jewellery market is undergoing significant changes due to high gold prices. The country's INR 7 lakh crore jewellery market has seen lower gold volumes, but higher consumer spending, prompting retailers to focus on lightweight, lower-carat and studded jewellery.

The shift towards value per gram rather than volume-led growth has led to a decrease in jewellery demand by 15.4% year-on-year to 75.1 tonnes in Q2 CY2026, according to the World Gold Council's India Focus report. However, the value of jewellery demand increased 34.4% to INR 1.13 lakh crore during the quarter.

For H1 2026, jewellery volumes fell 17.1%, while value rose 40% to INR 2.13 lakh crore. Consumers are opting for lighter-weight and lower-carat jewellery due to the price-led shift, while exchange transactions are also gaining traction.