Tariffs surge by 15% and Modi personally calls for a halt to gold purchases, but India's gold demand remains robust

　　Source: Golden Ten Data

　　As the shock in oil prices exposed India's dependence on energy from the Gulf region, the country's currency and foreign exchange reserves came under tremendous pressure. To reduce imports and thus support the rupee's continuously declining exchange rate, the Indian government has tried to intervene to curb the gold buying frenzy.

　　At that time, he also made a rare appeal regarding this metal with deep cultural and religious significance: "Within a year, no matter the event, we should not buy gold jewelry."

　　However,

　　India accounts for about one-third of global demand for gold jewelry. Driven by religious festivals and the summer wedding season,

　　The World Gold Council pointed out in July that India's major listed jewelry retailers reported strong quarterly profits, with revenue increasing by 30% to 60% year-on-year.

　　Titan Company, part of Tata Group, is the country's largest jewelry retailer. In the most recent quarter, its profits jumped 63%, while store foot traffic also rose. Currently, the jewelry business constitutes the vast majority of the chain group's earnings.

　　Investment and cultural attributes together reinforce demand

　　Titan Company Managing Director Ajoy Chawla stated in an interview

　　"Their love for the product and for gold has always been there—it won't disappear," Chawla pointed out. "They see it as a store of asset value. Even those who don't intend to sell jewelry consider it as part of their investment portfolio."

　　Titan Company’s chief financial officer Ashok Sonthalia said bluntly: "Even if I am someone very knowledgeable about finance, I would still invest in gold."

　　Within the vast and highly fragmented Indian jewelry market, Titan Company accounts for nearly one-tenth of the market share. Since the beginning of this year, its stock price has risen by nearly a quarter.

　　By contrast, the Nifty 50 blue-chip index—which includes this retailer—fell nearly 9% over the same period. Nomura Securities analysts commented that, as consumer demand has made a strong comeback after last year’s stagnation, Titan Company is "in a very favorable position."

　　Apart from its jewelry, watch, and eyewear business, which covers nearly 3,700 stores worldwide, Titan has also become one of the world's largest watch manufacturers by volume.

　　To broaden its business landscape, Chawla revealed the company is seeking potential acquisition opportunities to drive diversification of emerging fashion and lifestyle businesses, including handbags and perfumes.

Editor: Zhu Henan