Higher gold prices to weaken jewellery demand growth: ICRA
Kolkata, May 7: Higher gold prices and tightened credit availability are expected to weaken growth in jewellery demand by 2-4 per cent during 2018, a credit rating agency said on Monday.
"The agency expects the jewellery demand growth to weaken by 2-4 per cent for CY2018 (Calendar year 2018), owing to higher gold prices and subdued financing environment. The industry continues to remain susceptible to the regulatory risks, which has affected both demand and supply," ICRA said.
However, over the medium to long term, it expects the gold jewellery retail industry to record a 6-7 per cent volume growth, supported by stable rural and wedding demand, cultural affinity for gold, rising disposable income and favourable demographic profile.
"Gold prices have increased steadily in the last three months, which coupled with lesser number of auspicious days impacted jewellery demand. Also, financing to the gems and jewellery sector has been under increased scrutiny in the recent months following reporting of fraud by few lenders on their exposures to the sector," its Vice President K. Srikumar said.
According to him, lenders are more cautious on the sector with increasing due diligence and checks on credit and inventory quality.
"We expect the tightened credit availability to affect the working capital position of jewellery retailers, especially the unorganized ones," he said.
In contrast, gold jewellery demand for CY2017 grew by 12 per cent in volumes and 9 per cent in values amid headwinds in the form of higher tax rates post GST, inclusion of jewellery sector under the ambit of Prevention of Money Laundering Act albeit for a brief period and continued preference for other asset classes due to better returns.
The agency also said it expects the industry revenues to grow by 8-9 per cent in FY2019 supported by stable wedding and festive demand. The growth is seen declining compared to FY2018 with elevated gold prices and supply side concerns amid cautious lending environment.
"Over the medium to long term, the industry revenues are likely to settle at 7-8 per cent growth led by socio-economic and cultural factors that are unique to the Indian market," it added.
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Kiren Rijiju questions Rahul Gandhi’s silence during Waqf Bill debate in Parliament
New Delhi, April 16: Union Minister of Parliamentary Affairs and Minority Affairs Kiren Rijiju has questioned Congress MP and Leader of Opposition in the Lok Sabha, Rahul Gandhi, for not speaking during the recent debate on the Waqf (Amendment) Bill, 2025. Rijiju also noted that senior Congress leader Priyanka Gandhi was absent during the voting process in Parliament.
Speaking during an interview with ANI, Rijiju expressed surprise at the Congress leadership's silence on what he termed a “landmark bill.” He said, “I was surprised. Even Priyanka Gandhi was not present during the voting, she was absent.”
He further remarked that Rahul Gandhi came to vote but did not participate in the debate or make any remarks during the parliamentary proceedings. “Rahul Gandhi also came much later to vote. He did not take part in the proceedings, also he did not speak,” Rijiju said.
Rijiju speculated on possible reasons for Gandhi’s silence. “One of the reasons could be the huge pressure from the Christian community for the Congress party and for other MPs to support the Waqf Act. Secondly, maybe he wants to play a safe game, and whatever you speak on this landmark bill will remain on record. This was an important bill on which important leaders should have spoken,” he added.
The Waqf (Amendment) Bill, 2025 has drawn attention and criticism from various quarters, including opposition parties and minority groups. While the ruling BJP maintains that the amendments aim to improve transparency and governance of Waqf properties, critics argue that the bill threatens the autonomy of Waqf boards and could lead to interference in Muslim religious matters.
