India’s consumers continue to show a strong appetite for gold despite Prime Minister Narendra Modi’s calls to limit purchases and the government’s decision to raise the import duty on gold to 15 per cent, according to media reports.

Titan Company, India’s largest jewellery retailer and part of the Tata Group, reported a 63 per cent year-on-year rise in profit in the latest quarter, alongside an increase in store footfall. Jewellery continues to account for the majority of the company’s earnings.

Titan Managing Director Ajoy Chawla said in comments cited by media reports that the impact of the government’s measures had not been sustained for long, with consumers continuing to view gold as a store of value and demand remaining influenced by expectations around gold prices.

The resilience in jewellery demand comes despite Modi’s appeal in May for Indians to reduce gold purchases, followed by a renewed call to avoid buying gold unless necessary. The measures are aimed partly at reducing gold imports and easing pressure on the rupee and foreign exchange reserves.

According to the World Gold Council, Indian gold jewellery sales rose by about one-third year-on-year to US dollar 21 billion in the June quarter. The council also reported strong quarterly performances from major listed jewellery companies, with revenue growth of 30 per cent to 60 per cent, supported by festivals and the wedding season.

Gold’s cultural significance continues to support demand, particularly during weddings and religious festivals. At the same time, consumers increasingly view the metal as an investment and portfolio asset, helping sustain demand even as gold prices remain elevated.

Titan, which accounts for nearly a tenth of India’s highly fragmented jewellery market, has also benefited from the broader shift towards organised jewellery retail. Its shares have risen nearly 25 per cent this year, according to media reports.

For the jewellery industry, the numbers point to a clear distinction between gold imports and underlying consumer demand. While policy measures may reduce import volumes, they have so far not translated into a comparable decline in organised jewellery sales.