Modi Appeals for Restraint in Gold Buying Amid Economic Concerns

Prime Minister Narendra Modi has urged Indians to exercise restraint in their gold buying ahead of the festival season. The appeal comes as India's gold imports continue to rise, with data from 2025-26 showing a 24% increase to $71.98 billion despite a decline in volume imported.

The economic concern is that gold imports add to the demand for foreign exchange, potentially widening the trade deficit and putting pressure on the rupee.

However, framing PM Modi's appeal as a response to global gold prices offers incomplete context. The government has limited progress in reducing dependence on imported crude oil, and discretionary imports have become a more accessible target.