IndiaGoldForeign Exchange ReservesTrade BalanceEconomic Uncertainty
PM Modi Urges Indians to Avoid Gold Purchases for a Year Amid Economic Uncertainty
Published: May 11, 2026
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Prime Minister Narendra Modi has urged Indians to avoid buying gold for a year, citing the strain on India's foreign exchange reserves and trade imbalance. The appeal comes amid global economic uncertainty and escalating tensions in the Middle East, which have affected global energy flows.
The Global Trade Research Initiative (GTRI) has backed the appeal, saying surging gold imports are hurting India's foreign exchange reserves and trade balance, with gold bar imports jumping from $36.5 billion in 2022 to $58.9 billion in 2025.
Union Minister Ashwini Vaishnaw has reiterated PM Modi's appeal, calling on citizens to reduce import-related spending and help conserve foreign exchange, especially in light of the ongoing Middle East conflict.
The market has reacted to the appeal, with jewellery stocks seeing a sharp sell-off, including Senco Gold, Titan, Kalyan Jewellers, and PC Jeweller.
The government will likely continue to monitor the situation and provide updates on the impact of the appeal, with the next steps expected to include a review of precious metal concessions under the India-UAE Free Trade Agreement (FTA) to protect the country's forex reserves.