Why PM Modi Urged Indians To Avoid Buying Gold For One Year Amid Global Crisis

(MENAFN- AsiaNet News)

In a recent address, the Prime Minister made an unusual appeal to citizens, linking household spending habits with broader economic stability. The message focused on collective restraint during a period of global financial pressure and uncertainty.

In a recent public address, the Prime Minister encouraged citizens to limit non-essential purchases such as gold for the coming year. The suggestion comes against the backdrop of global economic uncertainty, driven by rising oil prices and geopolitical tensions in West Asia, which have increased pressure on India’s import costs and foreign exchange situation.

The Prime Minister pointed out that both gold and crude oil are heavily imported and paid for in foreign currency, mainly US dollars. Increased demand for these imports can strain India’s currency reserves. The appeal to reduce gold buying, especially during high-demand seasons like weddings, is aimed at easing pressure on the rupee and stabilising external balances.

The message on gold was part of a broader call for financial caution. Citizens were also encouraged to adopt energy-saving habits, reduce unnecessary travel, consider remote working where possible, and support locally made goods. The focus was on encouraging responsible consumption during a period of global economic stress.

India remains one of the largest consumers of gold, with demand often surging during festivals and weddings. Experts note that high gold imports, along with costly energy imports, can widen the trade deficit and impact currency strength. The appeal is seen as a temporary measure to manage economic pressure rather than a restriction on purchasing gold.

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