India: Modi Wants Indians to Stop Buying Gold
Modi said a one-year pause could cut dollar outflows by up to $25 billion and help steady India’s rupee, economists said.
- On May 10, Prime Minister Narendra Modi urged Indians to avoid purchasing gold for one year, framing the request as a patriotic act during difficult economic times and linking it to global tensions and the weakening rupee.
- India consumes around 700 tonnes of gold annually, importing nearly 90 per cent of its requirement from overseas, which places significant pressure on national foreign exchange reserves.
- Gold imports reached nearly USD 72 billion in FY 2025-26, while the International Monetary Fund estimates India's current account deficit could rise to USD 84.5 billion in 2026.
- Economists suggest a 30–40 per cent reduction in gold purchases could save India between USD 20 billion and USD 25 billion, helping to stabilize the rupee and ease pressure on forex reserves.
- If imports fall by half, savings could climb to nearly USD 36 billion, strengthening India's position amid global economic uncertainty and helping to stabilize the country's external sector.
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The impact of US-Iran tensions is also being felt on India's economy. Amid declining foreign exchange reserves, PM Modi has urged restraint in gold purchases, petrol, diesel, and cooking oil consumption to reduce import costs and pressure on the dollar.
Indian Express
Cryptocurrency News | Cryptocurrency Prices | Market CapBehind PM Modi’s austerity call, dipping foreign exchange reserves, rising gold imports
Behind Prime Minister Narendra Modi's call for austerity measures by citizens are substantial foreign exchange outflows linked to higher gold imports and spending on overseas travel under the Liberalised Remittance Scheme (LRS).
Dnevni list Danas
n1info.rsIndian Prime Minister Narendra Modi pozvao je danas građane Indije da godinu dana ne kupuju zlatni nakit, kako bi se zaštitio trgovinski balance zemlje koji je ugrožen zbog poskupljenja uvoza nafte usled rata sa Iranom.
India: Modi wants Indians to stop buying gold
Narendra #Modi's message to Indians is clear: stop buying gold jewellery for a year. With #India having to pay more to import #oil due to the #Iranwar, its prime minister hopes that holding off on buying the precious metal will protect the country's trade balance - a decision that could badly hit a nearly $100 billion industry.
Why PM Modi asked Indians to pause gold buying for a year
On 10th April (Sunday), Prime Minister Narendra Modi urged for the conservation of foreign exchange reserves amid the crisis in West Asia. He asked people to promote domestic travel rather than unnecessary international travel, foreign weddings and vacations. He also requested Indians to refrain from buying non-essential gold for a year to lessen the strain on foreign exchange outflows. “Gold purchases are another area where foreign exchange is …
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