Leading jewellers are preparing to align with Prime Minister Narendra Modi's push to curb gold imports by encouraging customers to exchange old jewellery for new designs instead of making fresh purchases. According to reports from The Hindu BusinessLine, the surge in gold prices has already accelerated this trend, with many consumers opting to trade in old ornaments to offset the cost of buying new jewellery. Jewellers are rolling out attractive exchange offers and promotional schemes to tap into the growing demand for gold recycling and replacement purchases.
Kalyan Jewellers India recently launched the 'Nation First – Gold4India Initiative', setting a target to reduce imports by 5 tonnes in this financial year. As reported by The Hindu BusinessLine, TS Kalyanaraman, Managing Director of Kalyan Jewellers India, said the initiative will spark a behavioural shift in consumers to recognise gold as a renewable domestic resource capable of continuously generating economic value within the country. Tanishq through its 'OldGoldNewIndia' campaign is accepting gold ranging from 9k to 22k for recycling and accepts gold from any jeweller, including broken or small pieces of jewellery. According to Arun Narayan, Chief Executive Officer, Jewellery Division, Titan Company, over the past 8 months, Tanishq has been calling out for jewellery purchases through old gold exchange, with 4.4 lakh customers responding by exchanging over 10,000 kgs of gold in this short period.
During the March quarter, Titan Company sold gold-ingots worth ₹6,144 crore (₹864 crore) as part of its inventory management, as reported by The Hindu BusinessLine. Malabar Gold & Diamonds has reduced the minimum deposit under its Gold Monetisation Scheme from 10 grams to 1 gram. Most leading jewellers are using karat meters and XRF machines to accurately determine gold content in jewellery to be recycled, with final valuation calculated based on prevailing market prices. According to Raghav Dhir, Director, Dhirsons Jewellers, the company has registered 20% growth in exchange of old gold compared to last year.
Despite industry initiatives, industry experts acknowledge challenges in the transition. Supriya Kataria, Founder, Kumari Fine Jewellery, noted that though players across the industry have intensified programmes on gold exchange now, it is more of a generational mindset shift that will take time to warm up, especially with budget-conscious customers. As reported by The Hindu BusinessLine, she emphasized that the Indian belief system remains rooted to buying gold that adds to one's wealth and prosperity, so the shift to accept recycling will require time to be accepted by young consumers.
