Modi Urges Indians to Cut Gold Demand Amid Record Imports

Indian Prime Minister Narendra Modi urged citizens to reduce non-essential gold purchases through social media platform Instagram, linking it to the country's 'self-reliance' strategy. He asked people not to buy gold if there is no need.

The appeal comes as India's gold imports reached a record $71.98 billion in fiscal year 2025-26, up 24% from the previous year. Gold imports account for over 5% of India's total merchandise imports and contributed to a trade deficit of $333.2 billion for the fiscal year.

Despite a tariff hike on gold and silver from 6% to 15% in May, the policy's effectiveness has been incomplete, with net gold imports in the second quarter falling by 23% but official import values continuing to grow rapidly.