Top jewellers push for old gold exchange to unlock home reserves
Thu May 14 2026
India’s gold imports rose more than 24 percent to a record $71.98 billion in 2025-26, compared to $58 billion in 2024-25. Imports stood at $45.54 billion in 2023-24 and $35 billion in 2022-23 Top jewellery retailers are rolling out initiatives to encourage recirculation of "idle gold" stashed in Indian households, as the government hikes import duties to curb imports.
The government on May 12 raised duty on gold and silver to 15 percent from 6 percent amid a surge in imports. The move followed Prime Minister Narendra Modi’s appeal to citizens to put off gold purchases for a year to alleviate stress on the country’s foreign exchange reserves. “India has the largest above-ground gold reserves in the world, with its citizens and temples,” Titan Company chief financial officer Ashok Sonthalia told Moneycontrol recently. Titan, the country’s largest jewellery retailer, was perhaps one of the first to come out with a gold exchange programme some 25 years ago. Launched in response to rising prices, the initiative now meets 50 percent of its gold sourcing requirements.
On May 12, Kalyan Jewellers announced a four-point strategy to reduce gold imports by five tonnes this fiscal. The firm’s “Nation First–Gold4India Initiative” aims to drive old gold exchange programmes, promote lighter 18 carat (kt) jewellery and monetisation schemes, and a gold recirculation drive.
The Thrissur, Kerala-based company plans to open dedicated counters that allow customers to encash gold at its 342 stores by providing a professionally managed and transparent gold monetisation service. In the December quarter, the mix of old-gold exchange was in the over 30 percent range, 1-2 percent higher than a year before, Kalyan Jewellers executive director Ramesh Kalyanaraman had told investors.
In a letter to the Prime Minister earlier this week, the Gems and Jewellery Export Promotion Council (GJEPC) listed out measures to curb imports and revitalise Indian idle gold. “Promoting sales of lower caratage jewellery can help reduce imports by 20-30 percent,” they said, adding encourage consumers to exchange old gold for new jewellery would further decrease import dependence.
Malabar Gold & Diamonds submitted a proposal to the Centre, recommending strategic enhancements to the gold monetisation scheme. “India already holds an enormous quantum of gold within households, much of it idle. If even a fraction of that is brought back into circulation through formal exchange and recycling, pressure on fresh imports eases meaningfully without the consumer giving up the cultural or financial role gold plays in their life,” Malabar Group chairman MP Ahammad said.
Gold monetisation and old gold exchange help alleviate stress on imports, explained an industry executive, who did not wish to be named.
“People usually buy jewellery, gold coins and keep them in bank lockers for a rainy day. These are reserves that can keep being reused in an economy and can help reduce the country’s dependence on imports and further reduce the burden on India’s foreign exchange reserves,” the executive said. Measures like re-engineering the portfolio mix, introducing light-weight 18 Kt and 14 Kt jewellery also help reduce gold demand in a country where 22 Kt jewellery is preferred.
Titan has introduced bridal jewellery collections crafted in 18 Kt amid steep price rises.
India, the world’s second-largest gold market, imports nearly all of its gold requirements and more than 85 percent of its crude oil needs. Spikes in oil and bullion imports can widen the current account deficit and increase pressure on the rupee.
India’s gold imports rose more than 24 percent to a record $71.98 billion in FY26, up from $45.54 billion in the previous year.
Source: https://www.moneycontrol.com/