Leading jewellery retailers on Tuesday said greater focus on recycling, exchange, reuse, and monetisation of existing domestic gold can help reduce import dependency, rather than deferring purchases, which could threaten the livelihoods of millions of people.
Senco Gold CEO and MD Suvankar Sen stated that the economy is passing through a challenging phase where the current account deficit is under pressure and imports need to be controlled.
"However, consumer jewellery buying is not directly connected to fresh gold imports alone, since a large part of the industry already functions through old gold exchange and recycled gold. It is also important that the nearly 20,000 tonnes of gold available within the Indian economy, across household, temple, and investment holdings, is mobilised for domestic consumption," he stated.
He said the jewellery industry plays an important role in supporting employment for karigars and artisans across the country.
"Our endeavour is to fulfil consumer demand while also contributing toward reducing dependence on fresh gold imports for the benefit of the country. Along with a collaborative approach involving the government, banks, and various stakeholders, we shall continue working toward strengthening the economy," he added.
Kalyan Jewellers India Managing Director T S Kalyanaraman said a stronger domestic recirculation ecosystem can sustain employment in the jewellery sector and help states preserve GST revenues linked to organised trade.
"The Nation First Gold4India Initiative is far beyond just a promotional campaign. The initiative will strive to spark a behavioural shift in consumers, from viewing gold solely as a static asset preserved indefinitely, to recognising it as a renewable domestic resource capable of continuously generating economic value within the country," he stated.
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If even a fraction of this inactive gold can be responsibly brought back into circulation, India can potentially reduce incremental dependence on imported gold without disrupting consumer aspirations or cultural traditions, he added.
PNG Jewellers Chairman and Managing Director Dr Saurabh Gadgil told PTI that currently most purchases involve recycling, meaning people are exchanging their old jewellery for new items.
"Therefore, in view of national interest, I think after the prime minister's appeal people will become even more prudent when buying jewellery, but they will not stop altogether," he said.
However, having said that, if consumer demand goes down the industry will be impacted, which will affect jobs of millions working in the sector, one of the largest employment providers in the country, he added.
Malabar Group Chairman M P Ahammad, in a letter to Finance Minister Nirmala Sitharaman and Commerce and Industry Minister Piyush Goyal, said, "India possesses one of the world's largest privately held gold reserves while continuing to rely significantly on imports to meet domestic demand. We support the prime minister's appeal and believe that encouraging responsible utilisation, recycling, and circulation of existing gold within the country is an important national priority.
"With appropriate policy support and active integration of the organised jewellery sector, the Gold Monetisation Scheme can emerge as a highly effective mechanism for mobilising idle gold into the formal economy." In his letter, he further said while the Gold Monetisation Scheme was introduced to reduce import dependence and monetise idle domestic gold holdings, public participation remained limited due to longer lock-in periods, lower perceived returns, limited redemption flexibility, and procedural challenges.
He suggested a jeweller-assisted collection and facilitation framework operating under bank and regulatory supervision, with digital tracking systems and transparent processing mechanisms to improve customer confidence and operational efficiency.
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