Narendra Modi urges Indians to cut gold buying

KATHMANDU: Narendra Modi has urged Indians to cut non-essential imports, including gold purchases, fuel consumption and overseas travel, as rising global tensions continue to pressure the country’s foreign exchange reserves.

Addressing a public gathering in Secunderabad during his visit to Hyderabad on Sunday, Modi appealed to citizens to avoid buying gold for a year, reduce edible oil use, limit petrol consumption and adopt work-from-home practices wherever possible.

The Indian Prime Minister said the ongoing conflict near India’s neighbourhood and disruptions in global supply chains have sharply impacted the economy over the past two months. He noted that India remains heavily dependent on imports for petroleum products, gas and fertilisers, making the country vulnerable to rising international prices.

Modi claimed the government has been absorbing much of the financial burden to shield citizens from the crisis, adding that sacrifice and responsible spending were also forms of patriotism.

However, the remarks triggered strong political reactions and rattled India’s jewellery sector on Monday.

Indian National Congress criticised the government for lacking a clear energy security strategy despite the prolonged global crisis. Congress general secretary K. C. Venugopal accused the government of shifting the burden onto ordinary citizens instead of introducing emergency economic measures.

Opposition leader Rahul Gandhi called Modi’s statement proof of the government’s failure, saying citizens should not be told what they can or cannot buy because of policy shortcomings.

Meanwhile, Akhilesh Yadav mocked the timing of the appeal, arguing that ordinary people could barely afford expensive gold while accusing ruling party leaders of converting black money into gold assets.

Following Modi’s appeal, shares of several Indian jewellery companies witnessed sharp declines. Sky Gold fell nearly 12 percent, while Senco Gold and Kalyan Jewellers dropped around 11 percent and 10 percent respectively. Shares of Titan Company also slid significantly during Monday’s trading session.

Union minister Ashwini Vaishnaw defended the Prime Minister’s remarks, saying India must both reduce unnecessary foreign currency spending and increase foreign exchange earnings to strengthen the economy.