India Consumer Jewellery sector – Déjà vu? Not really

Research evidence excerpt

India Consumer Jewellery sector – Déjà vu? Not really

12 May 2026

India Consumer EquitiesTextiles Apparel & Luxury

Gds

Jewellery sector – Déjà vu? Not really India

◆ 2013 saw quantitative and qualitative restrictions. Situation Nihal Mahesh Jham*, CFA

now better from a macro and company perspective SeniorHSBC SecuritiesAnalyst, Indiaand CapitalConsumerMarkets& Retail(India) Private

Limited

◆ Regulatory uncertainty coupled with inauspicious purchase nihal.m.jham@hsbc.co.in

+91 22 66283771

calendar set to keep sector rangebound in near term

Pratik Gothi*

Analyst, India Consumer & Retail

◆ However, gold demand in India is structural, and a significant HSBC Securities and Capital Markets (India) Private

correction could be seen as an opportunity pratik.gothi@hsbc.co.in

+91 80 6737 3929

Current situation not as intense as 2013 – The Prime Minister of India made a Nupur Vyas* Associate, India Consumer & Retail

statement on 10 May 2026 requesting consumers not to purchase gold for a year, HSBC Securities and Capital Markets (India) Private

given the situation of India’s increasing current account deficit (CAD) and reducing Limited

forex reserves. The last time the government urged citizens to stop gold purchases nupur.vyas@hsbc.co.in +91 22 40891584

was in 2013. India’s CAD was at c5% of GDP in Q1FY14 with gold accounting for a

disproportionate share of the import bill at c20%. To cut its import bill, at that time the

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

government raised import duties on gold three times within eight months, mandated a not registered/ qualified pursuant to FINRA regulations

80:20 rule which meant the re-export of 20% of every import tranche and paused

gold on lease.