Ranchi: Prime Minister Narendra Modi has triggered a major public debate after urging citizens to avoid buying gold for the next one year in order to help the country conserve foreign exchange reserves. The statement was made during the inauguration of development projects worth around Rs 9,400 crore in Hyderabad on May 10, 2026.
Calling it a voluntary and patriotic step rather than a restriction, the Prime Minister said India must carefully manage its foreign currency reserves at a time when global economic pressures are increasing. His appeal has especially drawn attention because gold purchases are deeply linked to Indian weddings and traditional family celebrations.
The backdrop to the statement lies in the ongoing instability in West Asia, which has disrupted global energy markets and pushed crude oil prices above 100 dollars per barrel. India, which imports nearly 85 per cent of its crude oil needs, is facing mounting pressure on its import expenditure.
According to experts, rising oil prices combined with large-scale gold imports are increasing stress on India’s foreign exchange reserves. The country imports massive quantities of gold every year, leading to billions of dollars flowing out of the economy.
The Prime Minister stressed that while essential imports like fuel cannot be avoided, reducing non-essential imports for a limited period could help ease financial pressure on the country. This is why he appealed to people to postpone gold purchases wherever possible.
Economic data suggests India’s foreign exchange reserves are currently close to 691 billion dollars. While the reserves remain strong, continuous spending on fuel and gold imports could gradually affect financial stability if global uncertainty continues.
The appeal is expected to influence the upcoming wedding season, as weddings account for a major share of India’s gold consumption. Many families traditionally invest heavily in jewellery during marriage ceremonies.
To reduce dependence on physical gold, the government has already promoted alternatives such as Sovereign Gold Bonds and Gold Exchange Traded Funds (ETFs), encouraging people to shift toward digital and investment-based options.
The Prime Minister’s remarks are now being widely seen as part of a larger effort to strengthen economic resilience, save foreign currency and reduce dependence on imports during a period of global instability.