- India's jewellery market is shifting towards exchange-led consumption amid rising gold prices
- Government raised import duties to reduce gold imports and promote domestic gold recycling
- Jewellers report increased demand for exchanging old gold for new designs or liquidity needs
India's jewellery market is witnessing a clear shift towards exchange-led consumption as rising gold prices and higher import duties push households to rethink how they buy, rather than whether they buy gold. Industry players say the trend is being reinforced by government efforts to conserve foreign exchange reserves and encourage recycling of idle domestic gold.
The Centre recently increased import duties on gold and silver, a move widely seen by the industry as part of a broader strategy to reduce reliance on imports and promote the circulation of existing household holdings. With gold prices already elevated, customers are increasingly expected to exchange old jewellery for new designs or use their holdings for liquidity needs such as selling or pledging, instead of making entirely fresh purchases.
Across the sector, jewellers and gold financiers are reporting stronger demand for exchange and recycling, as consumers look to unlock value from existing assets. Industry executives believe this behavioural shift could gradually strengthen India's circular gold economy, where old jewellery becomes a key source of demand for new purchases.
Anjali Jewellers Director Annargha Uuttiya Chowdhuury told PTI that higher duties are likely to encourage organised recycling and deepen the domestic circular gold ecosystem, noting that a significant portion of jewellery demand is already met through exchange and reuse of old gold. He added that formalisation of this channel could improve transparency and efficiency in the sector.
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Kalyan Jewellers Managing Director T.S. Kalyanaraman said a stronger domestic recirculation system could help sustain employment in the jewellery industry while also supporting state GST collections through greater organised trade. He noted that the shift is gradually changing consumer perception of gold, from a static store of wealth to a renewable domestic asset capable of generating continuous economic value.
Old Is Gold: Exchnage Offers By Jewellers
Several leading brands have already intensified exchange-led campaigns to tap into this shift. Tanishq has launched its #OldGoldNewIndia initiative, offering customers full value on old gold regardless of where it was originally purchased, allowing them to upgrade to new designs without deductions. The company's proposition effectively enables consumers to exchange old jewellery at 100% value, making the transition to new designs more attractive.
Kalyan Jewellers has also rolled out its “Nation First – Gold4India” programme across its store network, encouraging customers to exchange old, outdated or broken jewellery. The initiative aligns with the broader policy push and promotes lighter, modern 18-carat designs aimed at improving affordability amid high prices.
Malabar Gold & Diamonds is similarly offering a zero-deduction exchange policy on 22-carat gold under its “Zero Deduction” scheme, allowing customers to convert old jewellery into new designs at full value. Chairman M.P. Ahammad said India holds one of the world's largest privately held gold reserves and stressed that greater recycling, reuse and monetisation of domestic gold could reduce import dependence and limit dollar outflows over the long term.
CaratLane is also participating in the trend, offering zero-deduction exchange schemes on diamond jewellery purchases. However, the company maintains a standard deduction of around 4% when customers exchange old gold for plain gold or certain categories of jewellery, reflecting differentiated pricing across product segments.
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