Gold prices are at record highs, and Indians still bought more on Dhanteras than ever before. They did it by changing what they bought, not by cutting back. Shoppers chose lighter designs, lower-carat jewellery and silver, and that kept bullion counters busy through the day.

The Confederation of All India Traders (CAIT) estimates that Dhanteras generated about Rs 1.25 lakh crore in business across the country, a new record for India's retail sector. Gold and silver accounted for more than Rs 66,000 crore of that, or nearly 53%, according to the All India Jewellers and Goldsmith Federation (AIJGF). Delhi's bullion market is estimated to have contributed over Rs 10,000 crore on its own.

How buyers adapted to costly gold

The most telling detail is what people bought. Traders reported strong interest in 14-carat and 18-carat gold jewellery. These pieces cost less than traditional 22-carat ornaments and still let families keep up the custom of buying gold on Dhanteras. Lightweight jewellery, silver coins and silver articles considered auspicious also sold well, and so did investment-led purchases.

The pattern shows that festive gold buying in India is driven by tradition as much as price. When gold gets more expensive, families tend to buy lower-carat or lighter pieces instead of skipping the purchase.

Beyond the jewellery counter

The remaining roughly Rs 59,000 crore was spread across many categories. Shoppers bought automobiles, smartphones, laptops, televisions, home appliances, electrical goods, kitchenware, utensils and religious items. CAIT reported heavy footfall at jewellery markets, car showrooms, electronics hubs and neighbourhood stores.

CAIT Secretary General and Chandni Chowk MP Praveen Khandelwal said the day once again showed the strength of India's retail economy. He linked the numbers to strong consumer confidence and rising purchasing power. He also pointed to a growing preference for traditional markets and Indian-made products, and to greater support for local manufacturers, artisans, traders and MSMEs.

One day, a large share of the season

Dhanteras is only part of the festive season. CAIT had earlier estimated that trade from Navratri to Diwali could exceed Rs 7 lakh crore, a 15–18% increase over last year's festive business of about Rs 6.05 lakh crore. On that estimate, this single day accounts for nearly 18% of the season's projected trade.

For small traders and MSMEs, a strong Dhanteras matters a great deal. Many of them earn a large part of their annual revenue in these few weeks, and good sales on the day often lift spending through Diwali and the wedding season that follows.

CAIT said the result highlights the resilience of India's domestic consumption market and the growing role of festive spending in supporting trade and economic growth. With Diwali still to come, traders will be watching whether the momentum holds and whether the full season reaches the Rs 7 lakh crore mark.

With inputs from IANS