Hyderabad: Prime Minister Narendra Modi has triggered a nationwide debate after urging Indians to refrain from buying gold for one year, citing the need to protect India’s foreign exchange reserves amid rising global economic uncertainty and escalating tensions in West Asia.
Addressing a public gathering in Secunderabad, Telangana, the Prime Minister appealed to citizens to reduce non-essential imports and discretionary spending, particularly on gold, foreign travel, and excessive fuel consumption. The remarks come at a time when crude oil prices have surged sharply due to the Iran conflict, putting pressure on India’s import bill and the rupee.
According to reports, Modi said that gold purchases consume a significant amount of foreign exchange and urged people to postpone buying gold “in the national interest.” He also advocated for greater use of public transport, work-from-home practices, and domestic alternatives to imported products.
India is the world’s second-largest consumer of gold, importing most of the bullion it uses for jewellery, investments, and cultural purposes. Reports indicate that India imported nearly $72 billion worth of gold in FY26 alone, accounting for almost 10% of the country’s total import bill. Economists say a major reduction in gold imports could significantly ease pressure on the current account deficit and save billions in foreign exchange reserves.
The Prime Minister’s appeal has already had an impact on financial markets. Shares of leading jewellery companies reportedly fell after concerns emerged that the government could consider raising import duties on gold if the crisis deepens further. However, government sources later clarified that there are currently no plans to increase import duties on gold or silver.
Political reactions have also intensified. Congress leader Rahul Gandhi criticised Modi’s remarks, calling them a reflection of economic stress and policy failure. Meanwhile, policy think tanks and trade analysts have defended the appeal, arguing that reducing gold imports could strengthen the rupee and improve India’s external financial stability during a volatile geopolitical period.
The appeal is being viewed not merely as a suggestion about gold purchases, but as part of a broader call for “economic patriotism” during a period of global instability. Analysts believe the coming months will determine whether citizens respond to the appeal and whether the government introduces further economic measures to manage rising import costs and safeguard India’s economy.