India’s gold demand is projected to remain robust, driven by its significant cultural and financial importance. Keyur Shah, CEO of Muthoot Exim, emphasizes that how this demand is fulfilled will influence its wider economic implications. He advocates for organized gold recycling as a pragmatic solution that transforms idle household gold into a functioning domestic supply. This strategy could help diminish import dependency, alleviate pressure on the current account deficit, and simultaneously address environmental concerns.
Recently, Muthoot Exim inaugurated its 100th Muthoot Gold Point facility, having already procured nearly five tonnes of old gold. The company aims to expand its network to 200 centers within the next two years, as part of an initiative to formalize gold recycling throughout the country.
India possesses one of the largest private gold reserves globally, largely consisting of unused jewelry held in households. This creates a persistent structural imbalance, with significant domestic reserves left untapped while the nation continues to rely heavily on imports. With domestic gold production being minimal, India imports approximately 99 percent of its gold, reportedly acquiring around 630 tonnes valued at $58.8 billion in 2025.
Muthoot Exim has developed a standardized and transparent system for purchasing old gold via its retail network, aiming to bring order to a historically fragmented and informal market. Shah notes that formalizing gold recycling transcends mere business expansion; it represents a vital shift in managing one of the country’s most valuable assets. By integrating transactions into an organized framework, the initiative aims to align consumer behavior with national economic goals while bolstering the domestic gold supply chain.
Estimates suggest that private gold holdings in India range from approximately 25,000 to 30,000 tonnes. If just one percent of these holdings were recycled through organized channels, it could reduce annual imports by 25-30 percent.
Published on April 22, 2026.
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