Modi Again Warns Indians Against Buying Gold Amid Record-Breaking Import Bill
Indian Prime Minister Narendra Modi has once again discouraged citizens from buying gold, citing the need to reduce consumption and promote domestic products. This is not his first time making such an appeal - he previously asked Indians to stop buying gold for at least a year in May.
The latest statement came on Instagram, where Modi linked the reduction of gold consumption with promoting self-reliance and enhancing India's image as it approaches its centenary of independence. He stated, 'If it is not necessary, even gold should not be bought.'
The market reacted immediately, with jewelry stocks taking a hit. Titan Company fell 1.12% to 5045.50 rupees, while Kalyan Jewellers plunged 4.50% to close at 587 rupees.
India's gold import value has reached an all-time high of $71.98 billion in the 2025-26 fiscal year, a year-on-year surge of 24%. The rise in import value is mainly due to the substantial increase in international gold prices, not a rise in demand. As India relies heavily on imports and settles these transactions in US dollars, every increase in gold demand puts pressure on foreign exchange reserves and the rupee exchange rate.
The Indian government has discussed cutting import tariffs on gold and silver, as the previous high tariff policy has been deemed ineffective in curbing import growth.