Mumbai: Owing the credit to Diwali and Dhanteras, jewellery sales in Maharashtra witnessed a surge of 20 percent despite financial reforms such as demonetization and Goods and Services Tax (GST), in comparison to sales in 2016.
"People are no more scared to buy jewellery. We did a good business on Dhanteras. It escalated by 20 percent this festive season, mainly because the Prevention of Money Laundering Act (PMLA) was removed," Kumar Jain from Gold Bullion Association told ANI.
Adding to this Kumar said that the outlook for the upcoming wedding season looks great in terms of sales.
"The upcoming wedding season which begins in November is also responsible for the surge in purchases during Diwali. There are more than 25,000 weddings this year"
The market post-August 23, witnessed a downfall of 40 to 50 percent after the PMLA provisions for purchase of jewellery above Rs. 50,000 were made mandatory.
However, the consumers required Permanent Account Number (PAN) card and Aadhar card for the purchase of gold and diamond items.
Kumar, however, espouses that GST which led to a lump in other industries such as real-estate, and manufacturing, was beneficial for the jewellery industry.
"GST was beneficial for the jewellery industry. The provisions also helped us," added Kumar.
The government's announcements to relax norms under PMLA along with stable jewellery prices, greatly helped boost footfalls at jewellery shops during the festive season.