Modi Again Urges Indians to Buy Less Gold Amid Record Imports

India's Prime Minister Narendra Modi has once again urged citizens to reduce non-essential gold purchases, this time directly linking it to the country's 'self-reliance' strategy. The remarks came after India's gold imports reached a record high of $71.98 billion in fiscal 2025-26, up 24% from the previous year.

The surge in import value was largely driven by the sharp rise in international gold prices, rather than an increase in physical demand. Despite the Indian government raising import tariffs on gold and silver to 15% in May, the policy's effectiveness has been incomplete, with official import values continuing to grow rapidly.

The World Gold Council warned that illegal gold imports into India could exceed 100 tonnes in 2026 due to the widening discounts in the unofficial market. Modi's appeal comes as India's trade deficit widened to nearly $32 billion in July, the highest level since January this year.