India ranks fourth in the field of gold recycling, recycling so many tonnes of gold last year
India has came out as the fourth largest recycler in the world and the nation has recycled 75 tonnes in 2021, as per to a World Gold Council (WGC) report.
As per to the WGC report titled ‘Gold refining and recycling’, China topped the global gold recycling chart as it recycled 168 tonnes of the yellow metal, followed by the Italy in the second position with 80 tonnes and the US in the 3rd rank with 78 tonnes in 2021.
The India was ranked fourth in the list as the country recycled 75 tonnes in year 2021.
As per to the WGC report titled ‘Gold refining and recycling’ from 300 tonnes in year 2013, India’s gold refining capacity improved by 1,500 tonnes (500%) in 2021.
The report further noted that the gold refining landscape in the nation has changed over the last decade, with the number of formal operations improving from less than five in 2013 to 33 in 2021.
During the informal sector accounts for as much as an additional 300-500 tonnes, it is worth noting that the scale of disordered refining has fallen, largely because of the government’s tightening of pollution regulations.
On the other hand, tax benefits have underpinned the growth of India’s gold refining industry like the vital duty differential on dore over refined bullion has spurred the growth of organised refining in the India.
As a outcome , gold doer's share of overall imports has risen from just 7% in year 2013 to around 22% in year 2021, it noted.
“The India has probable to come out as a competitive refining hub if the next phase of bullion market reforms promotes responsible sourcing, exports of bars and consistent supply of a doer or scrap.
“Domestic recycling market, operated by local rupee prices and economic cycle, is relatively less organised but should gain help from initiatives like revamped GMS (Gold Monetisation Scheme) as different policy measures sync to make it attractive to bring surplus gold mainstream and liquidity is increased via bullion exchanges,” WGC Regional CEO, India, P.R. Somasundaram commented.
He told that holding periods of jewelry will continue to decline as younger users look to change designs more frequently, a trend that could contribute to higher levels of recycling.
“On the other hand, higher incomes following stronger economic growth will decrease outright selling and consumers will search it easier to pledge their gold rather than sell it outright. It is, therefore, required to support organised recycling with better incentives and tech-based solutions encompassing the gold supply chain end-to-end,” he added.
The WGC report noted that despite being the 4th largest recycler in the world, India recycles little of its own stock of gold — about 8 per cent of the global scrap supply.
Recycling is operated by current gold price movements, future price expectations and the economic backdrop.
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