Mumbai: Jewellers can expect an increase of 10-12 per cent in revenues in the next three quarters due to an increase in the number of auspicious wedding days.
Wedding jewellery is a key driver for demand and accounts for 60 – 65 per cent of the market demand. This together with the fading regulatory hurdles is likely to provide a boost to their revenue growth says India Ratings and Research. The sector had seen a low single digit growth in Q1FY17 and flat growth in 2016.
Recent measures like the increase in the limit of collectible amount under the Gold Savings Scheme to 35 per cent from 25 per cent of net worth and the compulsory hallmarking of jewellery will provide a further impetus to the organised jewellery sector growth and aid in shifting some of the demand from the unorganised sector.
