Mumbai, Oct 13 (PTI) Jewellery may lose a bit of itslustre this Dhanteras compared to last year due to confusionover GST-compliance but jewellers have lined up discounts andfreebies to lure buyers and get the sparkle back, according tomarket experts.
India Bullion and Jewellers Association (IBJA)Director Saurabh Gadgil told PTI that the market sentiment isimproving but it has not yet become buoyant.
"If the overall business remains same as the last yearor goes marginally up by 5 per cent, we will be very happy,"added Gadgil, who is also PNG Jewellers Chairman and ManagingDirector.
Postponement of salary, less than expected bonus, lackof clarity in removing jewellers from the Prevention of MoneyLaundering Act (PMLA) are some of the major issues that havedented the market sentiment this Dhanteras and Diwali, thefestivals which generally see a lot of buying of preciousmetals, he added.
"Also, the slowdown in economy has contributed to thesluggish market sentiment," Gadgil said.
The footfalls will increase at stores during thefestivals next week, he said, but the sale ticket size will belower.
Echoing a similar view, All India Gems and JewelleryTrade Federation (GJF) Chairman Nitin Khandelwal said therehas been some relief for the maker players due to thegovernment decision on the PMLA.
However, due to less currency in the market theoverall sentiment is dull, he said.
"The momentum has started, but it is yet to pick up.
There is less currency circulating in the market as anaftereffect of demonetisation announced last year. Because ofthis, there have been less buyers this year during Dhanterasand Diwali," he added.
The business this year is expected to be at par withlast year or could even be lower, Khandelwal said.
"To encourage people to buy jewellery during thefestivals, the market is full of free offers and discounts.
Jewellers are try their best to increase footfalls and createpositive sentiment in the market," he added.
Mostly people will go for light weight or essentialjewellery, he said.
World Gold Council Managing Director, India,Somasundaram PR said the industry is bracing for the festiveseason and the trend is looking better than the first half.
"However, the sentiment is not at its full potential.
After GST was implemented (in July) it brought in its ownshare of challenges, which will be there for some time," headded.
GST was not adopted properly and putting gold andsilver imports from South Korea in restricted list also causeddisruptions in the market, Somasundaram said.
"However, I would say demand will still go up andtouch the level achieved last year," he added.
In a relief to the industry, the government hasremoved gems and jewellery dealers from the purview of thereporting requirement under the PMLA.
Early this month, the government rolled back August23 notification that notified dealers in precious metals,precious stones and other high value goods as persons carryingon designated business and professions under the Act.
Also, this will be the first Diwali after the November8, 2016 note-ban announcement. PTI SMRSY.
This is unedited, unformatted feed from the Press Trust of India wire.