Indian Prime Minister Narendra Modi has again asked the public to avoid buying gold unless it is necessary, repeating a call he made earlier this year as pressure builds on the country’s economy. Modi said India is facing strain from a widening trade deficit and a weaker rupee, and tied his remarks to the need for greater economic self-reliance as war disrupts global supply chains.
His comments came as local Indian media reported that the government is considering lowering import duties on gold and silver, after earlier tariff increases failed to curb inflows of the two metals. The appeal marks the second time in 2026 that Modi has publicly urged restraint in gold purchases.
In May, Modi had already asked Indians to avoid buying gold for at least a year in order to conserve foreign exchange reserves. Gold is India’s second-largest import after oil and a major contributor to the trade deficit. In the first four months of the current fiscal year, which began in April, India’s gold imports rose by more than 32% year over year. India’s trade deficit widened to nearly $32 billion in July, the highest level since January, according to the report cited by Odaily.
Indian Prime Minister Narendra Modi is again telling people in India to hold off on gold purchases unless they truly need the metal. The appeal comes as the country deals with a growing trade deficit and a weaker rupee.
Modi spoke after Indian media reported that the government may lower import duties on gold and silver. Earlier tariff hikes did not stop either metal from entering the country. This is Modi’s second such appeal this year.
Back in May, Modi urged Indians to stop buying gold for at least one year, saying the move would help preserve foreign exchange reserves. Oil is the only import India buys more of, and gold remains a major contributor to the trade deficit.
During the first four months of the fiscal year that began in April, India’s gold imports climbed more than 32% from the same period a year earlier. The surge added pressure to the rupee. In July, India’s trade deficit reached nearly $32 billion, its highest level since January this year.
In an online video, Modi said, “Do not buy gold if you do not need it.” India, he said, must become more economically self-reliant if it wants growth to hold up while war disrupts global supply chains. He also called on people to buy products made in India and avoid going abroad for tourism and weddings.
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