Prime Minister Narendra Modi on Tuesday reiterated his appeal to Indians to refrain from buying gold, sharing the message in an Instagram post.
“If there is no need, then one should not even buy gold. The more we emphasise swadeshi, the more we emphasise self-reliance, I have firm faith that when India completes 100 years of independence, we will present a developed India to our young generation,” Modi said in the reel he posted on Instagram.
This is the second time this year that the Indian Prime Minister has made this appeal. In May, he asked Indians to stop buying gold for a year.
Gold, long considered one of the safest long-term assets for Indian families, carries cultural and financial significance across generations. Which is precisely why the Prime Minister’s remarks drew attention. But viewed through a broader macroeconomic lens, the appeal was less about discouraging investment and more about protecting India’s foreign exchange reserves at a time of rising global uncertainty.
India imports the overwhelming majority of the gold it consumes. Unlike domestically produced goods, gold imports must be paid for in foreign currency, primarily U.S. dollars. That means every surge in gold demand creates additional dollar demand in the foreign exchange market, as banks and importers purchase dollars to pay global suppliers.
India’s gold imports rose over 24 per cent to an all time high of USD 71.98 billion in 2025-26. It was USD 58 billion in 2024-25, USD 45.54 billion in 2023-24, USD 35 billion in 2022-23, USD 46.14 billion in 2021-22, USD 34.62 billion in 2020-21, and USD 28.2 billion in 2019-20.
In volume terms, however, it dipped 4.76 per cent to 721.03 tonnes in 2025-26 from 757.09 tonnes in 2024-25. It was 795.2 tonnes in 2023-24 and 678.3 tonnes in 2022-23.
India is the world’s second-biggest gold consumer after China. The imports are largely driven by the jewellery industry.
Jewellery stocks slipped after Modi’s appeal, with Titan Company falling 1.12% to ₹5,045.50 and Kalyan Jewellers declining 4.50% to ₹587.
