The recent increase in customs duty on gold and silver, coupled with Prime Minister Narendra Modi’s appeal urging people to avoid purchasing gold for a year, has begun impacting jewellery businesses and customer sentiment in Ludhiana, especially during the ongoing wedding season.
Local jewellers said the sudden spike in gold prices, reportedly rising by nearly ₹8,000 within a single day, has created panic among buyers and significantly reduced customer footfall in jewellery showrooms.
Jeweller Mala Dhanda described the situation as a major setback for small jewellers and middle-class families.
“People are scared after hearing the news and seeing the sudden jump in rates. Most customers visiting our store are now only refurbishing or renewing old jewellery instead of buying new ornaments,” she said.
According to her, buyers are increasingly shifting towards lightweight jewellery due to soaring prices.
While expressing support for measures taken in the national interest, she said small traders often bear the brunt of economic decisions.
“The jewellery industry contributes huge revenue to the government. If sales continue to decline, government revenue may also get affected,” she added.
Highlighting the emotional and financial importance of gold in Indian households, Dhanda said gold has traditionally been viewed as “istri dhan” and often supports families during difficult times.
{{/usCountry}}Highlighting the emotional and financial importance of gold in Indian households, Dhanda said gold has traditionally been viewed as “istri dhan” and often supports families during difficult times.
{{/usCountry}}She urged the government not to burden middle-class buyers and small jewellers through policies that make gold unaffordable.
Nilesh Garg, owner of Shri Valav Jewellers, said the combined impact of the duty hike and rising bullion prices has reduced customer interest in purchasing new jewellery.
“Indians have an emotional attachment with gold, so demand will never stop completely. However, the biggest challenge right now is that customers are avoiding fresh purchases,” he said.
He appealed to the government to take steps to stabilise gold and silver prices so that both jewellers and consumers can find relief amid rising costs.