Kolkata: The domestic jewellery retail industry, in value terms, is expected to grow at 10-12 per cent during the current financial year on the back of elevated gold prices, credit rating firm ICRA said in a report.
In the last financial year, the industry had grown by more than 15 per cent.
The research firm said organised jewellery retailers are expected to outperform the industry over the medium term, driven by planned retail expansion and tailwinds from the accelerated formalisation of the trade.
This was almost 14 per cent higher as compared to the price levels in the preceding first half.
The rating firm said the elevated price levels supported the revenue expansion of most jewellery retailers in the face of muted volume growth on a high base and persistent inflation.
It also projected that the jewellery industry to grow by 6-8 per cent year-on-year in the second half of the current fiscal due to stable demand.