India's Platinum jewellery sales seen growing at the cost of gloomy gold

MUMBAI (Scrap Monster) : The inward shipment of gold in India has been severely compressed in the current fiscal, as a result of tight restrictions imposed by the country’s government and the Reserve Bank of India (RBI). As a result, gold jewellery business in the country was hit badly. On the other hand, platinum jewellery sales continued its steady growth all through the year.

 

To contain rising gold imports, the customs duty on gold imports were hiked thrice during the year from 4% at the start of the year to 10%. The 80:20 rule linked exports to gold imports, making it mandatory for gold importers to supply at least 20% of their imports to exporters.

 

The country’s primary import source of Platinum is South Africa. Almost 80% of the imported Platinum comes from South Africa. Russia is the second largest exporter of Platinum to India, accounting for 12% of total imports. Out of the total platinum imports, only 35% is utilized by the jewellery sector, whereas the remaining is used for industrial purposes.

 

The jewellery industry in India is estimated at $30 billion annually, as suggested by data. Gold still dominates with a market share of 75%, followed by diamonds at 15%. Platinum is way behind with 1% estimated market share.

 

According to jewellers, platinum sales have been growing at around 25% over the past few years. Platinum is a growing market which has a long way to go. With gold demand expected to remain subdued, the sale of platinum jewellery may take a turn for the better.

 

Author: Paul Ploumis