Ahmedabad: Following Prime Minister Narendra Modi’s appeal to reduce gold purchases for a year to cut import dependence, jewellers in Ahmedabad are preparing to promote exchange-driven buying instead of fresh purchases. Industry players say rising bullion prices have already pushed consumers towards swapping old jewellery for new ornaments.”Nearly 80% of jewellery sales are now happening through exchange schemes. Fresh demand has already weakened because of the steep rise in prices,” said Manoj Soni, a jeweller from Ahmedabad. He added, “Akha Trij remained one of the few occasions this year that witnessed strong consumer buying despite elevated prices. Going forward, many retailers are expected to introduce special schemes and exchange-linked offers to keep demand active while reducing pressure on fresh imports.””In the coming months, jewellers are likely to introduce more exchange schemes and discounts linked to old gold. Such programmes can sustain market demand while also unlocking large volumes of household gold for recycling,” Soni said.The trend has already gained traction in organised retail. During the festive and wedding season of 2025, when gold prices surged sharply, Tata Sons-backed jewellery retailer Tanishq introduced a zero-deduction exchange scheme across all karats of gold to encourage customers to swap old jewellery for new purchases. Local retailers are now considering similar strategies.Meanwhile, Jigar Soni, president of the Jewellers’ Association of Ahmedabad (JAA), said, “Any consumer shift away from fresh gold purchases could have a significant impact on the trade, which supports lakhs of livelihoods across the country through retail, manufacturing and ancillary activities. Therefore, we need to come up with ways that boost demand while keeping fresh imports under check.”According to official import data, Gujarat’s gold imports stood at 114.38 metric tonnes (MT) in FY 2025-26 despite record-high prices, indicating the continued dependence on imported bullion.A recent Gold Demand Trends report by the World Gold Council showed that net recycling or scrap supply in India rose 20% year-on-year in Q1 of 2026 (Jan-Mar) and 44% quarter-on-quarter to 31.2MT. “Many gold holders preferred monetising part of their holdings rather than fully liquidating assets, keeping scrap supply relatively muted despite gold prices rising over 80% over the past year,” the report stated.The sector remains among India’s largest employment generators, supporting nearly 50 lakh workers, artisans and small businesses across the country, said GJEPC chairman Kirit Bhansali. “The Indian gem and jewellery industry has always shown resilience during difficult periods, be it the Gold Control Act, the 80:20 rule, or other challenging phases in the past. The industry is consulting stakeholders to work towards balanced and practical solutions,” he added.
