India imports over 700 tonnes of gold each year because domestic demand for jewellery, investment bars, coins and festive purchases far exceeds local mine production.
Demand is driven by cultural milestones (weddings, births, festivals) and the perception of gold as a tangible household savings asset, keeping demand structurally high despite price swings.
Retail gold prices are influenced by international bullion rates, the USD‑INR exchange rate, import duties and local taxes; small duty changes can shift buying patterns.
Higher gold prices encourage consumers to use organized gold‑exchange services, where old jewellery is evaluated and sold, reducing the need for fresh imports.
Tanishq’s exchange model offers transparent weighing, purity testing with a Karatmeter, separate stone‑weight calculation and same‑day pricing, building consumer confidence.
The exchange mechanism recycles unused gold, potentially lowering the country’s import dependence and supporting a more sustainable gold economy.
Policy on import duty remains a key lever; any adjustment directly affects landed cost and can influence overall import volumes.
