India’s gold demand is expected to remain strong due to its deep cultural and financial relevance, but the way this demand is met will determine its broader economic impact, according to Keyur Shah, CEO of Muthoot Exim.
He said organised gold recycling presents a viable solution by converting idle household gold into an active domestic supply. This approach can help reduce import dependence, ease pressure on the current account deficit, and address environmental concerns simultaneously.
The company recently launched its 100th Muthoot Gold Point facility and has procured nearly five tonnes of old gold so far. It plans to expand its network to 200 centres in next 2 years as part of a broader push to formalize gold recycling across the country.
Keyur Shah, CEO of Muthoot Exim.
India holds one of the world’s largest private gold reserves, largely in the form of unused jewellery in households. This creates a structural imbalance, where substantial domestic reserves remain untapped even as the country continues to rely heavily on imports.
With domestic production being negligible, India imports nearly 99 per cent of its gold. It is reported that in 2025 alone, gold imports stood at around 630 tonnes, valued at $58.8 billion.
Muthoot Exim has introduced a standardised and transparent mechanism for buying old gold through its retail network, aiming to bring structure to a traditionally fragmented and informal market.
Shah said that formalizing gold recycling is not merely a business expansion strategy but a necessary shift in managing one of the country’s most valuable assets. By moving transactions into an organised framework, the initiative seeks to align consumer behaviour with national economic priorities while strengthening the domestic gold supply chain.
It is estimated that India has approx 25,000 to 30,000 tonnes of private gold holdings. Even if one per cent of this gold holding is recycled in an organized manner, it will reduce the annual imports by 25-23 per cent.
Published on April 22, 2026
