New Delhi: India’s Prime Minister Mr. Narendra Modi has appealed country’s citizens not to buy gold for one year. His may have sounded unusual at first, especially in a country where gold is deeply linked to tradition, savings and family celebrations.
But behind the statement lies a larger economic concern: pressure on India’s foreign exchange reserves and the weakening rupee during a global energy crisis.
The Prime Minister’s remarks came as crude oil prices surged sharply following the Middle East conflict and tensions around the Strait of Hormuz, one of the world’s most important oil shipping routes.
Responding to the Prime Minister’s appeal, Mr. Rajesh Rokde, Chairman of GJC, stated, “India’s economic strength must always come before individual preferences. Hon’ble Prime Minister’s appeal regarding responsible gold consumption reflects the larger national concern of rising imports and pressure on foreign exchange reserves. At the same time, India already possesses thousands of tonnes of idle household gold. The solution may not lie only in reducing demand, but also in unlocking the immense value of existing gold through a transparent and regulated Gold Monetization Scheme (GMS).”
A revitalised, jeweller-integrated GMS can help:
- Mobilize idle household gold
- Reduce dependence on imports
- Strengthen the formal economy
- Improve transparency and traceability
- Convert dormant gold into productive national capital
Nation First. Responsible Gold Ecosystem Next.
Mr. Avinash Gupta, Vice Chairman of GJC, stated, “Gold has always been emotionally and culturally connected to Indian households. But today, the nation also faces the challenge of balancing gold demand with economic stability. Respecting the Prime Minister’s vision for national interest, the industry believes that a robust and regulated Gold Monetisation Scheme can become a long-term solution for India. Instead of idle gold remaining locked in households and lockers, GMS can channel it into the formal economy — reducing imports, easing CAD pressure and strengthening India’s financial ecosystem. The answer lies not only in consuming less gold, but in utilising existing gold more efficiently, transparently and productively.”
