INSUBCONTINENT EXCLUSIVE:
Authors: Super UserHigher 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
However, the situation is not as gloomy as it appears since in the medium to long term, the gold volume growth is likely to return on
account of rural demand, wedding seasons and rising disposable income.Besides the higher gold prices, there are numerous factors that have
brought the gold market down
One of them is the constant monitoring of this sector in terms of giving loans to the companies in this sector.: Investing in Gold
jewellery, Gold ETFs or Gold Bonds Know How They Are TaxedThis was set off by a chain of events started earlier this year when the famous
jeweller Nirav Modi was charged in a case filed by Punjab National Bank for an alleged fraud amounting to Rs 12,000 crore and
above.Following this, lenders became more cautious on the jewellery sector as they increased due diligence and checks on credit and
inventory quality.Because of the curtailed formal funding, the jewellers are expected to face difficulty in funding their day to day
unorganized ones," said vice president K
Srikumar of ICRA.However, the situation is likely to improve in the medium to long term, the ICRA statement added."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.(With IANS inputs)
