India’s jewellery market is facing a gold paradox: consumers are buying fewer grams, but jewellery spending remains resilient. Record gold prices are weighing on volumes, yet organised jewellers are growing by selling lighter products, diamonds, newer designs and, increasingly, a broader brand proposition.
Titan’s jewellery business grew 43% in the June quarter, while Kalyan Jewellers reported 46% growth in consolidated revenue. Senco Gold also entered FY27 with strong growth. At the same time, the World Gold Council (WGC) said India’s jewellery demand fell 17.1% by volume in H1 2026.
The divergence is forcing a rethink of how India’s roughly ₹7 lakh crore jewellery market is growing: it is no longer about selling more grams of gold, but about selling more value per gram.
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“While the overall volume demand for jewellery could remain under pressure owing to the steep rise in gold prices and price-sensitive nature of purchases, the overall consumer spending on jewellery is expected to remain resilient,” said Akhil Goyal, director, CareEdge Ratings.
Fewer grams, bigger bills
The WGC's India Focus report for Q2 CY2026 captured the shift. Higher gold prices pushed consumers towards “lighter-weight, lower-carat, and studded jewellery”, while exchange-led purchases also gained traction across retailers.
In Q2 CY2026, India’s jewellery demand fell 15.4% year-on-year to 75.1 tonnes, while jewellery demand value rose 34.4% to ₹1.13 lakh crore, according to the WGC. In H1 2026, jewellery volumes fell 17.1%, while demand value rose 40% to ₹2.13 lakh crore.
The divergence helps explain how jewellers can continue reporting revenue growth even when gold volumes weaken.
