Gold recycling in India has nearly doubled since Prime Minister Narendra Modi’s appeal to curb fresh jewellery purchases, with recycled gold now accounting for 50-60 per cent of sales compared with 25-30 per cent earlier. The recent correction in prices has further accelerated this shift, as domestic gold prices have fallen 3.7 per cent and international prices 4.2 per cent since end-May, prompting consumers to exchange old jewellery for new. Industry estimates suggest exchange-driven transactions have risen by 5-15 per cent, forming as much as 60-70 per cent of sales in some cases.

The exchange of old gold jewellery for new ones has started picking pace, with the recent fall in gold prices boosting purchases by consumers. While gold prices have moderated from the highs seen early this year, the divergence between domestic and international trends was largely due to a 5 per cent depreciation in the rupee against the dollar and an increase in import duty to 15 per cent.

The rise in jewellery recycling comes little more than a month after Prime Minister Narendra Modi’s call to consumers to cut down on jewellery purchases and promote recycling of old gold for fresh buying in order to reduce imports and bridge the widening current account deficit.

Rajesh Rokde, Chairman, All India Gem and Jewellery Domestic Council, said, “Since the Prime Minister’s appeal, awareness regarding gold recycling and exchange has increased significantly, with the industry witnessing a steady rise in old gold collection through jewellers, refiners and exchange programmes.”

While volumes vary across regions, several hundred tonnes of old gold are recycled annually in India, and the trend has strengthened further due to increasing consumer awareness and trust in organised processes. He added, “Gold recycling is not just an economic opportunity, but also a sustainability initiative. Every gram of gold recycled reduces the need for fresh mining and imports while preserving value within the Indian economy.”

Most leading retailers have launched targeted old gold exchange programmes to attract consumers. Arun Narayan, Chief Executive Officer, Jewellery Division, Titan Company, said, “Over the past eight months, Tanishq has actively promoted jewellery purchases through old gold exchange in partnership with Sachin Tendulkar. We are thankful to 4.4 lakh customers who have responded by exchanging over 10 tonnes (worth over Rs 1,200 crore) of gold in this short period.”

He added that they remain committed to this purpose and welcome customers to experience the best exchange process at Tanishq, which is the most transparent and offers the best value for old gold.

Suresh Krishnan, VP-Sales, PNG Jewellers, said the newly launched nationwide initiative Swarna Swaraj to promote recycling across all the company’s showrooms has delivered a strong response. “Historically, old gold exchanges and recycling accounted for roughly 25-30 per cent of our consumer transaction mix. In recent quarters, that share has nearly doubled to 50-60 per cent of our retail sales composition,” Krishnan said.

Courtesy : The Hindubusinessline