New Delhi, India — A new survey has revealed that nearly six out of every ten Indian consumers are reconsidering their gold-buying habits after Prime Minister Narendra Modi urged citizens to reduce unnecessary gold purchases in an effort to ease pressure on the country’s foreign exchange reserves.
According to the survey findings, around 61% of respondents who regularly purchase gold said they are willing to either stop or significantly reduce buying the precious metal in the coming months. The shift reflects growing public awareness of the government’s concerns over rising gold imports and their impact on India’s economy.
India is one of the world’s largest consumers of gold, with demand driven by weddings, festivals, religious traditions, and investment purposes. However, heavy gold imports increase the country’s import bill because most of the metal is purchased from overseas markets using foreign currency reserves, particularly US dollars.
Prime Minister Modi recently appealed to citizens to make more cautious purchasing decisions regarding gold, emphasizing the importance of protecting India’s foreign exchange reserves amid global economic uncertainty and fluctuating commodity prices.
While a majority of survey participants indicated they may reduce purchases, opinions remained divided among consumers. Some respondents said they would continue buying gold only for essential cultural events such as weddings and traditional ceremonies, where gold jewelry remains deeply rooted in Indian customs.
Others stated that despite the Prime Minister’s appeal, they still consider gold one of the safest long-term investment options, especially during periods of inflation, market volatility, or economic instability. Financial analysts note that gold has historically been viewed in India as both a symbol of wealth and a secure financial asset.
Economists say reduced gold demand could help narrow India’s trade deficit and lower pressure on the Indian rupee by decreasing dependence on imports. However, they also warn that a prolonged slowdown in gold purchases could affect jewelry retailers, bullion traders, and related industries that employ millions of workers across the country.
India’s gold market plays a major role in the nation’s economy, particularly during the festive and wedding seasons when demand traditionally surges. Any major behavioral shift among consumers could therefore have broader implications for both domestic businesses and international gold markets.
The survey highlights how economic messaging from the government can influence consumer sentiment, particularly at a time when policymakers are focused on maintaining financial stability and managing external economic risks.
