Indians are ignoring calls by Narendra Modi's government to curb gold purchases, according to the country's biggest jewellery retailer. Profits at Titan — part of the Tata conglomerate — rose by 63 per cent, while footfall also increased in the most recent quarter. Jewellery accounts for the vast majority of the chain's earnings.

The increase came despite the Indian prime minister asking citizens to pause gold purchases and more than doubling import duties to 15 per cent amid the Iran conflict. Modi reiterated the appeal earlier last week, asking Indians to avoid buying gold "if not necessary". Ajoy Chawla, managing director of Titan, which sells jewellery, watches and eyewear across almost 3,700 stores, said the impact of those measures was "not long lasting", with demand driven more by customers' perceptions of the gold price. "Their love for the product and gold is there, that is not disappearing," Chawla told the FT. "They are looking at it as a store of asset value." This year's oil price shock exposed India's energy dependence on the Gulf, putting pressure on its currency and foreign exchange reserves.

The bid to curb gold purchases was part of a drive by New Delhi to help prop up the sliding rupee by reducing imports. India accounts for about a third of global demand for gold jewellery, with sales jumping about a third year-on-year to $21bn in the June quarter, according to the World Gold Council. Along with the duty increases, Modi made an unusual appeal to Indians as he asked them to avoid buying the metal that holds a deep cultural and religious significance in festivals and weddings, as well as acting as an investment. "For a year, be it any function, we shouldn't buy gold jewellery," he said at the time.

That call appears to have fallen on deaf ears. The World Gold Council said in July that major listed Indian jewellery merchants had reported strong quarterly earnings, with revenue growth of 30 to 60 per cent year on year, supported by religious festivals and the summer wedding season. Titan finance chief Ashok Sonthalia said gold remained highly favoured in India as an investment vehicle.