Raipur/Bilaspur, Chhattisgarh | The Chhattisgarh Jewellers Association has publicly supported Prime Minister Narendra Modi’s reported appeal urging citizens to refrain from purchasing gold for one year, describing the move as a long-term economic reform that could strengthen India’s financial stability and reshape the traditional jewellery trade.
Association President Kamal Soni said jewellers and traders should not panic over the proposal, emphasizing that the initiative could ultimately benefit both the national economy and the bullion industry.
Gold Market Under Pressure Amid Global Uncertainty
According to Soni, the global economic climate over the past two years — marked by geopolitical conflicts, inflationary pressure, and financial instability — has triggered a sharp and unpredictable rise in gold prices. This volatility has significantly impacted India’s jewellery sector, particularly small and mid-sized traders.
He stated that conventional jewellery business operations have increasingly narrowed into bullion-focused transactions, leaving many retailers struggling with shrinking margins and declining consumer demand.
“Frequent fluctuations in gold prices have created uncertainty across the market. However, this appeal could eventually stimulate broader economic activity and bring long-term stability,” Soni said.
Shift Toward a Service-Oriented Jewellery Industry
Soni stressed that the current situation offers an opportunity for India’s jewellery industry to evolve beyond simply buying and selling gold. He advocated for transforming the sector into a more service-oriented business model focused on craftsmanship, design, customization, repair services, certification, and value-added customer experiences.
He argued that such diversification would help the industry remain sustainable even during periods of high bullion prices and reduced consumer purchasing.
Reduced Gold Imports Could Strengthen India’s Economy
The association also highlighted the economic implications of India’s heavy dependence on gold imports. Soni explained that reducing gold imports could help conserve foreign exchange reserves and strengthen the Indian rupee.
He added that stronger reserves and improved liquidity could indirectly support small industries, infrastructure growth, and domestic business activities across multiple sectors.
“This is not just about restricting gold purchases. It is about improving the flow of capital into productive sectors of the economy,” he said.
‘Dead Capital’ Concern Raised
Soni described idle household gold reserves as “dead capital,” arguing that vast quantities of wealth remain locked inside homes instead of contributing to economic growth.
He said the broader objective behind the Prime Minister’s thinking appears to be encouraging citizens to redirect investments into banks, manufacturing, startups, and other productive industries capable of generating employment and accelerating economic activity.
Warning Against Aggressive Corporate Jewellery Marketing
The Chhattisgarh Jewellers Association also cautioned consumers against aggressive advertising campaigns by large corporate jewellery brands.
Soni claimed that such business models often result in significant capital outflow while providing limited benefits to local jewellers and traditional artisans. He emphasized the importance of supporting regional businesses and family-run jewellery establishments that sustain local employment and preserve traditional craftsmanship.
Demand for ‘Gold Craft Board’
During the statement, the association renewed its long-standing demand for the establishment of a “Gold Craft Board” (Swarn Shilp Kala Board) in states where such institutions do not yet exist, including Chhattisgarh.
According to Soni, the proposed board would help preserve India’s traditional gold craftsmanship heritage while providing artisans access to government welfare schemes, subsidized loans, insurance coverage, and modern technical training.
He added that strengthening traditional gold craftsmanship aligns with the broader vision of the Make in India initiative and could play a major role in boosting indigenous manufacturing and skilled employment.
Industry Watching Closely
The remarks from the Chhattisgarh Jewellers Association come at a time when India’s gold market is witnessing both record-high prices and changing consumer behavior. While the proposal to temporarily reduce gold purchases may generate debate within the bullion sector, industry leaders in Chhattisgarh believe it could encourage a healthier balance between savings, investment, and economic productivity in the long run.
