Prime Minister Narendra Modi has renewed his call for Indians to avoid unnecessary purchases of gold, linking the appeal to the wider economic impact of the country’s high dependence on gold imports.
India imports a significant portion of the gold consumed domestically. When gold imports increase, they require more foreign currency and can contribute to pressure on the country’s trade balance.
Modi has urged citizens to be more cautious about spending on gold when purchases are not essential. He has also highlighted expensive foreign weddings and overseas holidays as areas where Indians could consider reducing discretionary spending.
The broader concern is the outflow of foreign exchange from the country. While gold remains an important part of Indian household savings and cultural traditions, excessive imports can add to external economic pressures.
The appeal comes amid efforts to strengthen domestic economic activity, manage foreign exchange outflows and support India’s broader economic resilience.
