Narendra Modi urges Indians to reduce unnecessary gold purchases

Indian Prime Minister Narendra Modi has urged citizens to avoid unnecessary gold purchases as part of his ‘Swadeshi’ and ‘Atmanirbhar Bharat’ (self-reliant India) campaigns. Modi emphasized the importance of prioritizing locally made products to help the nation achieve development by its 100th anniversary of independence.

Gold is India’s second-largest import after petroleum and a significant contributor to the country’s trade deficit, which reached nearly $32 billion in July. Reducing gold imports is seen as a way to protect India’s foreign exchange reserves, as gold must be purchased using foreign currency, primarily US dollars.

Following the Prime Minister’s remarks, shares of major Indian jewelry manufacturers saw a decline, including Titan Company and Kalyan Jewellers. The push for self-reliance also includes calls for citizens to avoid foreign tourism and destination weddings abroad, encouraging domestic alternatives instead.