Modi Urges Indians to Avoid Buying Gold Amid Record Imports

Indian Prime Minister Narendra Modi has made a fresh appeal to citizens to avoid buying gold, sparking a decline in shares of jewellery retailers.

The move is aimed at curbing gold imports and easing pressure on the rupee. India's gold imports rose by more than 24% to a record $71.98 billion in FY26 from the previous year.

The country's reliance on gold imports has significant economic implications, with the precious metal serving as a hedge against inflation and broader economic uncertainty for Indian households.

A higher trade deficit resulting from increased gold imports can put pressure on foreign exchange reserves, particularly when combined with factors like rising crude prices and a falling rupee.