Rajesh Exports Ltd., India’s largest gold jewelry exporter, is spending 18 billion rupees ($328 million) on retail expansion locally to sustain growth and counter declining demand in the U.S. and Europe.
Gold demand in India, the world’s biggest consumer of the precious metal, may drop 50 percent during this year’s Akshaya Tritiya festival because of rising prices, trading company RiddiSiddhi Bullions Ltd. said.
Gold futures in Mumbai are poised to extend declines to the lowest level since August 2011 as a falling trend channel signals further losses, according to a technical analysis by Motilal Oswal Commodity Broker Pvt.
Indian gold funds are shrinking for the first time since June as investors in the biggest bullion- consuming nation follow billionaire George Soros in pulling money from products backed by the precious metal.
Gold jewelry exports from India, the world’s biggest consumer last year, are poised to surge as the central bank seeks to curtail domestic bullion use and boost shipments to defend a weakening currency, a trade group said.
India, the world’s largest bullion buyer, should mobilize idle gold lying with its citizens to curb imports and lower a record current-account deficit, according to the All India Gems & Jewellery Trade Federation.
India, the world’s second-biggest sugar producer, will consider allowing mills to export an additional 1 million metric tons next week to ease a surplus, according to an official with direct knowledge of the matter.