Wedding Frenzy Set to Ignite Gold Demand

23 September 2024

In 2024, from January 15 to July 15, the industry saw more than 4.2 million weddings, resulting in an estimated expenditure of $66.4 billion…reports Asian Lite News

India is geared up for more than 35 lakh weddings in the November-mid December period this year, which is projected to result in a massive Rs 4.25 lakh crore expenditure.

The country sees approximately 1 crore weddings each year, making the industry second largest in the world. According to reports, the sector is the fourth largest industry in India, with the annual spending reaching $130 billion and creating millions of jobs.

In 2024, from January 15 to July 15, the industry saw more than 4.2 million weddings, resulting in an estimated expenditure of $66.4 billion (Rs 5.5 lakh crore), according to a survey by the Confederation of All India Traders (CAIT).

Prabhudas Lilladher said in its latest report that recent cut in gold import duties from 15 per cent to 6 per cent is anticipated to lead to a notable rise in gold purchases nationwide, especially during the upcoming festive and wedding seasons.

Given gold’s cultural and religious importance, along with its status as a valuable investment, this reduction is expected to significantly boost demand, the report noted.

The report further mentioned that stock market frequently sees a boost during the festive and wedding seasons, largely driven by heightened consumer spending.

“Sectors such as retail, hospitality, jewellery, and automobiles see substantial benefits from this increased demand. Contributing factors include economic stability, low inflation, supportive government policies, and evolving consumer preferences,” the findings showed.

While the impact may differ across sectors, the overall effect on the Indian economy is positive.

The report stated that higher spending on premium goods and services, such as airlines and hotels, boosts revenue. This increased demand enhances profit margins and drives stock prices higher, supporting overall economic growth.

Meanwhile, the government also plans to enhance tourism by promoting India as a top choice for international weddings, to tap into Rs 1 lakh crore that is currently spent on destination weddings overseas.

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