Normalcy Expected Soon in Jewellery Market
Mumbai: India's USD 45 billion jewellery market has been struggling over the last 50 days, post the government’s announcement of demonetisation on November 8. However, the industry has not seen much respite from slack demand even as the deadline for demonetisation ended on 30th December 2016.
In November, sales were down 70-80 percent since most of the buying happens in cash and in December they are still down by 30-40 percent. Cash transactions for them have completely dried up. The big challenge for the industry is the inability to exchange old gold for cash and convincing people to go cashless. However, the industry expects the situation to normalise in 1-2 months.
