Kalyan and Malabar Gold Back PM Modi’s Push to Reduce Gold Imports

Kalyan Jewellers and Malabar Gold & Diamonds have announced separate initiatives supporting Prime Minister Narendra Modi’s appeal to reduce gold purchases amid concerns around India’s rising gold import bill and its impact on foreign exchange reserves and the current account deficit.

Kalyan Jewellers has launched its “Nation First, Gold4India Initiative,” a four-pillar framework focused on bringing idle household gold back into circulation through exchange, monetisation and reuse programmes.

Meanwhile, Malabar Gold & Diamonds said it has submitted a proposal to the Government of India recommending reforms to strengthen the Gold Monetisation Scheme (GMS) and improve public participation in the programme.

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Jewellers Push Gold Recirculation:

According to Malabar Gold & Diamonds, India imports nearly 700 to 800 tonnes of gold annually, while households and institutions across the country are estimated to hold between 25,000 and 35,000 tonnes of gold in the form of jewellery, coins and bars. The company said a significant portion of this gold remains economically idle.

Both companies stated that increasing the recycling, reuse and circulation of domestic gold could help reduce dependence on imports and lower foreign exchange outflows.

Kalyan Jewellers said its initiative aims to reduce imports by five tonnes of gold during the current financial year.

Speaking about the initiative, 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.”

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Gold Monetisation Push Gains Momentum:

The initiative includes old gold exchange programmes, dedicated “Encash Gold” counters for monetisation services, awareness drives through the My Kalyan network and promotion of 18K jewellery as a more efficient gold consumption option compared to traditional 22K jewellery.

Kalyanaraman added that the programme aims to encourage consumers to view gold not only as a static asset but also as a “renewable domestic resource capable of continuously generating economic value within the country.”

Malabar Gold & Diamonds said participation in the existing Gold Monetisation Scheme has remained limited because of longer lock-in periods, lower perceived returns, limited redemption flexibility and procedural challenges.

The company has proposed reducing the minimum deposit requirement from 10 grams to 1 gram, introducing flexible redemption options in cash or gold, simplifying Aadhaar-based e-KYC procedures and integrating organised jewellers into the scheme under regulatory oversight.

M.P. Ahammad said, “India possesses one of the world’s largest privately held gold reserves while continuing to rely significantly on imports to meet domestic demand.”

He added that with stronger policy support and organised sector participation, the Gold Monetisation Scheme could become an effective mechanism for mobilising idle gold into the formal economy.

According to the company, mobilisation of even 1% to 2% of India’s domestic gold holdings could potentially release 600 to 700 tonnes of gold into circulation, equivalent to a substantial share of the country’s annual import demand.