Prime Minister Narendra Modi asks Indians to avoid buying gold for at least a year, a move aimed at easing pressure on India’s foreign exchange reserves as the country faces economic strain linked to the West Asia conflict and related oil and currency shocks. Multiple outlets report that the appeal comes as India imports a large share of its crude oil and global energy prices rise, contributing to higher import bills and affecting the rupee. In parallel, India faces an energy- and trade-balance challenge as gold demand remains significant and gold imports rise. Media coverage also links the government’s stance to the broader effort to reduce foreign-currency spending. Business-focused reports add that gold retailers and jewellery stocks feel the impact of the message, with at least one outlet noting that import-duty changes have added to pressure on the sector. Several reports cite the record level of gold imports and the role of higher global gold prices in increasing the value of purchases. Overall, sources agree that Modi’s request targets reduced gold imports to conserve dollars and support the balance of payments during the ongoing crisis.
Modi urges Indians to pause gold buying to save foreign exchange amid West Asia crisis
Prime Minister Narendra Modi asks Indians to avoid buying gold for at least a year, a move aimed at easing pressure on India’s foreign exchange reserves as the country faces economic strain linked to...
- Modi urges Indians to pause or reduce gold purchases for at least one year.
- The move is linked to protecting foreign exchange reserves and the rupee amid strains from oil and currency shocks.
- Sources attribute some of the pressure to the West Asia conflict and higher global energy prices.
- Gold imports are reported to be rising, with higher global gold prices contributing to a larger import bill.
- Business outlets report knock-on effects for jewellery retailers and jewellery-related stocks.
Modi has urged Indians to save dollars as war and oil shocks strain the rupee and economy further this year.
3 months agoPrime Minister Narendra Modi on Sunday appealed to Indians to reduce their gold purchases for a year in a move to encourage foreign exchange savings amid the crisis in West Asia
3 months agoThe unusual appeal from the prime minister has a direct impact on India’s foreign exchange reserves as the economy grapples with energy crisis and declining currency value, writes Namita Singh
3 months agoIndia’s gold imports hit a record $71.98 billion in 2025-26, rising over 24% from $58 billion a year earlier. This was largely due to skyrocketing global gold prices, which have bumped up the value of imported gold.
3 months agoNarendra #Modi's message to Indians is clear: stop buying gold jewellery for a year. With #India having to pay more to import #oil due to the #Iranwar, its prime minister hopes that holding off on buying the precious metal will protect the country's trade balance - a decision that could badly hit a nearly $100 billion industry.
3 months agoIndia’s love for gold may be going on pause. PM Narendra Modi is urging citizens to avoid buying gold for a year as the ongoing Iran conflict puts pressure on the economy. (Source: Bloomberg)
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