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Although India may be at number four in this matter, but still only 8 percent of domestic gold is recycled here. The rest of the gold comes from outside through imports. Fluctuations in gold prices, speculation about future prices and economic conditions have led to a rise in recycling.
Last year, China was at the forefront of gold refining and recycling. It used 168 tonnes of gold for this. Italy recycled 80 tonnes at number two and 78 tonnes of gold by the US at third.
picture changed in a decade
According to the report, the picture of India’s refining and recycling has changed in a decade. After the tightening of the rules by the government, refining of gold is being done in a better way. In this the number of refining in the organized sector has gone up to 33 which was only 5 in 2013. The unorganized sector, however, has a refining capacity of 300 to 500 tonnes. However, capacity in the unorganized sector continues to fall as the government tightens pollution-related regulations.
significant contribution of tax
Refining of gold has also been strengthened by improving the tax structure. The government has separated the import duty on raw gold from that of refined gold. After this, there was an increase in the export of refined gold and import of raw gold. In 2013, the share of crude gold in India’s total imports was 7 percent, which has now increased to 22 percent.
Need to bring surplus gold in the market
Somasundaram PR, Regional CEO of World Gold Council said that if India implements new reforms in its bullion sector, it can go far ahead in the refining sector. There is a need to bring surplus gold in the market through gold monetization scheme. This will make gold cheaper and at the same time the demand will also increase. Refining capacity will also expand.
Potential to emerge as a refining hub
India has the potential to emerge as a competitive refining hub if the next phase of bullion market recovery is sustained by the export of rods and the supply of scrap. The domestic recycling market is driven by rupee prices and the cycle of the economy.
Expansion
India ranks fourth in the world in terms of recycling of gold. Last year it recycled 75 tonnes of gold. The World Gold Council (WGC) said in a report that while India’s refining and recycling capacity was only 300 tonnes in 2013, it has increased 5 times to 1,500 tonnes in 2021.
Although India may be at number four in this matter, but still only 8 percent of domestic gold is recycled here. The rest of the gold comes from outside through imports. Fluctuations in gold prices, speculation about future prices and economic conditions have led to a rise in recycling.
Last year, China was at the forefront of gold refining and recycling. It used 168 tonnes of gold for this. Italy recycled 80 tonnes at number two and 78 tonnes of gold by the US at third.
picture changed in a decade
According to the report, the picture of India’s refining and recycling has changed in a decade. After the tightening of the rules by the government, refining of gold is being done in a better way. In this the number of refining in the organized sector has gone up to 33 which was only 5 in 2013. The unorganized sector, however, has a refining capacity of 300 to 500 tonnes. However, capacity in the unorganized sector continues to fall as the government tightens pollution-related regulations.
significant contribution of tax
Refining of gold has also been strengthened by improving the tax structure. The government has separated the import duty on raw gold from that of refined gold. After this, there was an increase in the export of refined gold and import of raw gold. In 2013, the share of crude gold in India’s total imports was 7 percent, which has now increased to 22 percent.
Need to bring surplus gold in the market
Somasundaram PR, Regional CEO of World Gold Council said that if India implements new reforms in its bullion sector, it can go far ahead in the refining sector. There is a need to bring surplus gold in the market through gold monetization scheme. This will make gold cheaper and at the same time the demand will also increase. Refining capacity will also expand.
Potential to emerge as a refining hub
India has the potential to emerge as a competitive refining hub if the next phase of bullion market recovery is sustained by the export of rods and the supply of scrap. The domestic recycling market is driven by rupee prices and the cycle of the economy.