Highlights
While addressing a rally in Haryana on Sunday, PM Modi urged Indians not to buy gold for a year. This statement aims to save foreign exchange reserves and reduce pressure on the import bill. The West Asia war has already impacted the import bill, and additionally, the falling rupee against the dollar will significantly increase the import bill. India is the largest importer of gold, and higher gold imports lead to a decrease in foreign exchange reserves. This impacts import-dependent nations like India even more.
Reason: Why PM Modi Asked Indians Not to Buy Gold
India’s annual gold imports are roughly 700+ tonnes, making it one of the largest gold importers in the world. However, in India, gold is not widely used on a production scale or mainly as an investment asset. It is primarily purchased for weddings, festivals, and credit systems. In India, gold prices do not significantly affect demand because gold is strongly linked with tradition and culture.
The payment for gold is made in US dollars, but the Indian rupee is at a record low against the US dollar, which increases the import bill and reduces foreign exchange reserves.
On the other hand, due to the ongoing West Asia war, supply chains are majorly disturbed, and oil prices have hiked significantly because the Strait of Hormuz – which is a major passage for oil shipments – has been disrupted. Since oil payments are also made in US dollars, this puts further pressure on and decreases foreign exchange reserves.
🔗 Also read: EPFO 3.0 Rules: How to Instantly Withdraw PF Using UPI & ATM
PM Modi’s appeal has become more important recently as the USA rejected Iran’s 10-point peace proposal. This could lead to an oil price hike, which may increase inflation and create supply chain issues.
Alongside PM Modi, it was specifically mentioned that we have to adopt a system like the one used during the COVID-19 pandemic, and he urged working from home, reducing petrol and diesel consumption by using metro rail, carpooling, shifting to electric vehicles, and also mentioned avoiding foreign travel for a year.
India’s current reserves stand at $691.11 billion at the end of March 2026, which can be used for the next 11 months of imports, as reported in the half-yearly reserves management report.
Published date: 11/5/20026
🔗 Recent Posts:
- $100 Google Fitbit Air Fitness Tracker Launches With No Screen
- Vivo X300 Ultra Full Kit Price in India: DSLR Feel in Your Pocket
- KTM 390 Duke R vs KTM RC 390 Price in India and Key Differences
- ₹10,000 Cr Boost: Govt Rolls Out Startup India Fund Of Funds 2.0
- Apple CEO John Ternus Net Worth: Replacing Tim Cook in 2026
