Prime Minister Narendra Modi Urges Citizens to Avoid Unnecessary Gold Purchases to Support Self-Reliance and Economy

Prime Minister Narendra Modi has renewed his appeal to citizens to avoid buying gold unless genuinely necessary, urging the public to prioritize domestic spending, local products, and national self-reliance. In a video message released following the announcement of India's 7.8 percent GDP growth, Modi emphasized that reducing discretionary gold purchases will help conserve foreign exchange and strengthen the domestic economy against ongoing global supply chain disruptions and geopolitical conflicts.

The Prime Minister’s appeal directly addresses India's heavy reliance on imported precious metals, which represents one of the largest drains on the country's foreign currency reserves. India imports nearly all of the gold it consumes, paying for shipments in US dollars. In the recent fiscal year, the national gold import bill surged by over 24 percent to reach a record $71.98 billion, largely driven by rising global bullion prices even as total imported tonnage slightly declined.

Alongside limiting gold purchases, Modi called on citizens to holiday within the country and host destination weddings domestically rather than travelling overseas, reiterating the mantra of "Wed in India". He noted that redirecting household spending toward local goods and domestic tourism supports local businesses, creates employment, and keeps capital within the national economy as the country works toward its long-term development goals.

The remarks prompted an immediate reaction across the financial sector, leading to slight declines in major domestic jewellery retail stocks. While market analysts acknowledge that gold remains deeply rooted in Indian culture as a preferred wedding asset and inflation hedge, policymakers continue to encourage financial instruments and local productive investments to curb dollar outflows during volatile global economic periods.