PM Modi renews call to curb non-essential gold buying as imports hit record value
Prime Minister Narendra Modi has reiterated his appeal to avoid unnecessary gold purchases, linking the message to swadeshi and self-reliance. India’s gold-import bill rose 24% to a record $71.98 billion in 2025-26, even as import volumes fell 4.76% to 721.03 tonnes.
What happened
Government of India · Prime Minister Narendra Modi reiterated his call for Indians to avoid unnecessary gold purchases, citing swadeshi and self-reliance.
Key facts
- Gold imports rose 24% to an all-time high of USD 71.98 billion in 2025-26
- Gold-import volume fell 4.76% to 721.03 tonnes in 2025-26 from 757.09 tonnes in 2024-25
- Gold imports were USD 58 billion in 2024-25
Why this matters
High gold costs and potential demand moderation could increase the appeal of asset-light expansion, sourcing partnerships, and acquisitions of regional chains with strong exchange-led customer bases.
What to watch
- Further government statements, policy measures or import-duty changes explicitly targeting discretionary gold demand.
- Monthly India gold-import volumes versus import value; continued value growth with falling tonnage would confirm price-led demand stress.
- Domestic gold-price movement, rupee depreciation and the premium/discount versus international prices.
- Festival and wedding-season sales: transaction counts, grams sold per invoice, exchange penetration and average ticket size.
- Growth in jewellery retailer same-store sales, especially volume growth versus price-led revenue growth.
- Gold-loan growth and household recycling flows, which can signal affordability pressure and support exchange-led purchasing.
- Market-share and store-expansion commentary from organised chains versus independent jewellers.
- Increase lighter-weight, daily-wear and lower absolute-price assortment while protecting design-led gross margins.
- Expand old-gold exchange, buyback and upgrade programmes to reduce customers' cash outlay and secure recycled-metal supply.
- Emphasise bridal, occasion and gifting collections, where purchase deferral is less likely than in investment-oriented buying.
- Use EMI, savings-plan and price-lock offerings selectively, with tighter credit and redemption-risk controls.
- Increase marketing around purity, hallmarking, transparent pricing and resale value to capture consumers shifting toward organised retailers.
- Review store-level inventory turns and reduce exposure to slow-moving heavy-weight designs if footfall conversion weakens.