Modi Appeals to Citizens: Stop Buying Gold, Travel Abroad

Indian Prime Minister Narendra Modi has appealed to citizens not to buy gold for the second time in four months. He made this appeal during a visit to Kyrgyzstan, saying people should only purchase gold if it is absolutely necessary. This is part of a broader effort to reduce India's reliance on foreign currencies, specifically the US dollar.

India imports around 90% of its gold from abroad, which means that buying more gold increases the country's import bill and reduces its foreign exchange reserves. In the last financial year, India spent ₹6.85 lakh crore on gold, making it the second-largest item in the country's import bill after crude oil.

Ajay Kedia, founder of investment advisory firm Kedia Advisory, explained that reducing or stopping gold imports can strengthen the rupee and improve India's current account balance. However, Modi has also appealed to citizens not to travel abroad, as this also puts pressure on the country's foreign exchange reserves.