Excise Duty

The introduction of an additional 1 per cent excise duty was announced in the Union Budget and later it was withdrawn after opposition from the jewellery industry.

PAN Requirement

The requirement that purchases above Rs 200,000 need a Permanent Account Number (PAN) card have acted as headwinds to the industry.

Six Week strike

Consumers were unprepared for the huge jump in the gold price when the market re-opened after six weeks strike.

Gold above psychological

Gold prices rose above Rs 30,000 per 10g, which is a significant psychological barrier for Indian consumers and the highest domestic price for more than two and a half years.

Low Rural Income

Lower spending by rural Indians was another blow to demand as the rural population accounts for more than half of India's jewellery demand.