What is a gold refining business in India?

A gold refining business purifies scrap, recycled, or imported gold to 999 fineness (highest purity) using electrolytic or chemical processes, then sells refined bullion back to jewellers, dealers, and manufacturers. In 2026, this addresses supply gaps created by West Asia conflict disruptions, where jewellers face 2–3 month import delays and forced discounts of up to ₹200/gm.

How much does it cost to start a gold refining business in India?

₹25–40 lakh for a small-to-medium refinery: assay lab (₹8–12L), melting/electrolytic furnace (₹10–15L), facility & utilities (₹5–8L), working capital (₹2–5L), BIS certification & licenses (₹1–2L). Most entrepreneurs secure 70–80% via MSME loans at 8–10% interest.

Is gold refining profitable in India?

Yes. A 50–100 kg/month refinery can earn ₹2.5–8 lakh/month from refining fees alone (₹50–80/gm), plus 0.5–1% margins on bullion resale and ₹5–20k/day from testing services. With ₹35L startup, ROI is 8–14 months at 40–50% gross margins. High demand is confirmed by jewellers offering ₹200/gm discounts—they'll pay refining fees to source locally.

What regulations apply to gold refining in India?

Key regulations: (1) BIS IS 1417:2010 for hallmarking/assay certification (mandatory for purity claims); (2) DGFT import license if importing raw gold; (3) GST 5% on refining services, 3% on bullion under LRS; (4) State Pollution Board clearance for chemical discharge; (5) PAN + TDS compliance for cash transactions over ₹50k. Municipal zoning must permit manufacturing.

Gold Refining Business India 2026 — Startup Guide

AI SummaryGold refining represents a ₹8,000–12,000 crore annual opportunity in India, driven by West Asia supply disruptions that have forced jewellers to absorb 2–3% cost premiums and multi-month import delays. As of March 2026, Indian gold prices hit record highs (₹15,855/gm), making local refineries critical infrastructure for cost-sensitive jewellery manufacturers in Mumbai, Surat, and Bengaluru. Entrepreneurs with ₹25–40 lakh capital and BIS certification can achieve 8–14 month payback by processing 50–100 kg/month at ₹50–80/gm refining fees, directly serving the 800+ jewellers in Zaveri Bazar alone who currently face 4–6 week import backlogs.