Kalyan Jewellers, Tanishq, Malabar Gold, And Muthoot Exim Promote Gold Recycling Schemes

Prime Minister Narendra Modi's call to reduce dependence on imported gold has prompted a strong response from the jewellery industry. Leading brands such as Kalyan Jewellers, Malabar Gold & Diamonds, Muthoot Exim, Tanishq, and MMTC-PAMP are increasingly promoting gold recycling and exchange programmes.

These schemes encourage consumers to exchange old jewellery, broken ornaments, outdated designs, and gold coins for new jewellery or cash. Industry players believe that recycling domestic gold can help sustain business activity without increasing pressure on imports, while also saving India significant amounts in customs duty payments. The current situation has also renewed calls to revamp the Gold Monetisation Scheme (GMS) and introduce additional supportive measures to protect the industry from potential disruptions.

Gold Recycling Programmes By Jewellery Brands

Kalyan Jewellers has introduced the Old Gold Exchange Promotion scheme under its "Nation First - Gold4India Initiative," allowing customers to exchange old, unused, broken, or outdated jewellery. The exchanged gold is refined, redesigned, and reused within the domestic jewellery ecosystem. Notably, GST does not apply to the exchange value of old gold; tax is charged only on the value of the new jewellery purchased.

"For a 10-gram gold item, we provide the full value of the gold content with zero deductions on quality. The only adjustment is a minimal, transparent charge for the de-alloying process," Ramesh Kalyanaraman, executive director of Kalyan Jewellers, told ET Wealth Online.

Meanwhile, Malabar Gold & Diamonds has reduced the minimum deposit amount under its Gold Monetisation Scheme from 10 grams to 1 gram. Tanishq, through its #OldGoldNewIndia campaign, is accepting gold ranging from 9k to 22k for recycling. The company added that it accepts gold from any jeweller, including broken or small pieces of jewellery.

At the same time, Muthoot Exim has continued to run its long-standing Muthoot Gold Point exchange programme. The company charges 3% of the gold value as a service fee, while no GST is levied on the gold exchange component.

Things To Remember Before Opting For Gold Recycling Schemes

Consumers should clearly understand the gold evaluation process before proceeding with any exchange or recycling transaction. The first step is purity testing, which is now commonly conducted using technologies such as karat meters and XRF machines to accurately determine gold content. The final valuation is then calculated based on prevailing market prices.

Customers should also have realistic expectations about resale value. The original purchase price of jewellery often includes making charges, design costs, branding premiums, craftsmanship expenses, and taxes. During recycling or resale, however, only the intrinsic value of the gold is usually considered unless other elements are separately assessed.

Why Gold Recycling Is Becoming Increasingly Important?

India's gold imports surged more than 24% in FY26 to a record $71.98 billion. During the same period, the current account deficit widened from 0.2% of GDP in Q1 FY26 to 1.3% in Q3 FY26, while the trade deficit climbed to $93.6 billion. The rupee also fell to a record low of Rs 95.63 against the US dollar.

According to Keyur Shah, CEO of Muthoot Exim, recycling even 1% of the gold held by Indian households could reduce annual gold imports by nearly 300 tonnes, equivalent to almost 40% of India's yearly gold imports, ET Wealth Online notes.