31-1-2020
World Gold Council (WGC) said gold jewellery demand in India fell nine percent yoy to 544.6 tonnes in 2019, however, demand by value climbed three percent unexpectedly to US$24.4 billion.
The decline was greatly influenced by a surge in the gold price to a new six-year high by value during the second half of last year. The domestic economic slowdown and the absence of demand from rural areas also had an impact.
WGC India managing director Somasundaram explained the improved economy would have a rub-off effect on the jewellery industry. Reforms that are about to announce in the budget are likely to put more money in the hands of people. It will drive up consumption.” The country’s finance minister Nirmala Sitharaman will present the annual budget of 2020/2021, which is widely expected to cut some personal tax in order to stimulate consumer confidence and investment.
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