Prime Minister Narendra Modi has urged Indians to avoid buying gold unless necessary, placing the precious metal at the centre of his latest appeal for greater domestic consumption and self-reliance.
In a selfie-style video message on Tuesday, PM Modi congratulated Indians on the economy growing 7.8% and called for greater emphasis on “swadeshi” products. However, alongside his broader appeal to avoid foreign holidays and overseas weddings, he singled out gold purchases.
“If it is not necessary, you should not buy gold either,” PM Modi noted.
India's gold imports rose nearly 5% year-on-year to $4.16 billion in July, contributing to a merchandise trade deficit of $31.98 billion, its highest in six months.
Major jewellery stocks traded lower on Tuesday morning after Prime Minister Narendra Modi urged Indians to refrain from buying gold unless absolutely necessary, as part of his latest appeal to promote "Swadeshi" and "Vocal for Local".
At 11:50 am, Titan Company was trading at Rs 5,046 on the NSE, down Rs 55.90, or 1.10%, from the previous close. Kalyan Jewellers India was trading at Rs 574.70, down Rs 26.30, or 4.38%. PC Jeweller, Goldiam International and Thangamayil Jewellery were also trading around 2% lower.
Modi made the appeal in a post on Instagram, urging Indians to embrace the mantra of "Swadeshi" and "Vocal for Local". He asked people to avoid travelling abroad merely for leisure or hosting weddings in foreign countries, instead calling for "Weddings in India". He added that greater emphasis on "Swadeshi" and self-reliance would help India move towards becoming a "Viksit Bharat" by the time the country marks 100 years of independence.
The appeal comes as gold remains a key purchase for Indian households, particularly for jewellery and weddings.
This is not the first time Modi has made such an appeal. On May 10, amid the West Asia crisis, the Prime Minister had called upon citizens to become "partners" in strengthening the country and made seven appeals aimed at conserving foreign exchange.
At the time, Modi had urged citizens to reduce consumption of imported fuel by using public transport and carpooling amid a rise in crude oil prices. He had also called on people to rethink discretionary spending, including avoiding foreign travel for a year, reconsidering destination weddings abroad and limiting excessive gold purchases. The Prime Minister had also called for the revival of work-from-home practices, lower edible oil consumption and reduced dependence on imported chemical fertilisers.
In his latest appeal, Modi again called for greater emphasis on "Swadeshi" and self-reliance, stating that the combined strength of 1.4 billion Indians could help the country become a "Viksit Bharat" by 2047.