Gold Fever Ignites in India Despite Modi's Pleas
India's love affair with gold remains strong despite Prime Minister Narendra Modi's pleas to curb demand. Last spring, Modi asked Indians to hold off on buying gold for a year in an effort to control the country's trade deficit and stabilize the rupee.
The trade deficit has indeed skyrocketed, reaching $330 billion in the financial year ending March 2026, up 17.9 percent from the previous year. Gold imports doubled in July, rising to an estimated 40-45 tonnes after a weak June, signaling growing demand.
The World Gold Council reported improving Indian jewelry demand in July, with industry feedback suggesting that deferred purchases returned to the market and manufacturers began receiving higher order flows ahead of the festive season. Indian jewelry sales jumped by about one-third year-on-year to $21 billion in Q2, according to WGC data.
Titan managing director Ajoy Chawla noted that the impact of government measures to curb gold demand was 'not long-lasting,' as Indians view gold as a store of asset value and wealth. Modi reiterated his appeal last week, but it appears many Indians find it necessary to buy gold for both cultural and economic reasons.