Prime Minister Narendra Modi on Tuesday renewed his appeal to citizens to avoid buying gold unless necessary and to choose domestic destinations over foreign holidays, linking greater spending within the country to the goal of sustaining and accelerating India’s economic growth.
Congratulating people on India’s 7.8% economic growth in the April-June quarter, Modi said in a video message on social media that the growth momentum had to be maintained and accelerated. “We have to maintain this growth momentum, and also to accelerate it,” Modi said in Hindi.
PM Modi’s pitch to go “swadeshi”
Achieving that goal required advancing the vision of “Atmanirbhar Bharat”, or a self-reliant India, he said, stressing the “mantra of swadeshi” and “vocal for local”. In that context, Modi urged people not to spend money on foreign holidays or destination weddings abroad and to embrace the “mantra of made in India”.
He also advised citizens not to buy gold unless necessary.
The remarks reiterate an appeal Modi made on May 10, when he urged people to avoid non-essential foreign travel and postpone gold purchases for a year, with the aim of conserving foreign exchange for more productive uses.
The renewed call comes amid a sharp increase in gold imports.
According to the latest government data, gold imports rose 32.4% to $15.17 billion in the first four months of the current financial year, from $11.46 billion in the corresponding period of 2025-26.
In rupee terms, gold imports during April-July 2026 stood at more than ₹1,43,880 crore, up about 46.5% from ₹98,239 crore a year earlier.
Experts weigh in
Experts said Modi’s comments should be seen against a broader economic backdrop marked by geopolitical uncertainty and volatility in global energy markets, even as the Indian economy continues to post strong growth.
Ajay Sahai, director general and chief executive of the Federation of Indian Export Organisations (FIEO), said imports of raw materials and intermediate goods were necessary to support manufacturing and exports, but non-essential imports should be restrained.
“Gold is mostly unproductive asset in India. Its import is only justified if it is productively used and not as an idle asset,” he said.
Similarly, Sahai said, greater domestic spending on domestic tourism could support the Indian economy.
“India is a large country with diverse culture. People must explore it first and add to the Indian economy instead of spending money in foreign destinations,” he added.
India’s trade deficit
Gold is among India’s largest imports and contributes to the country’s merchandise trade deficit.
India’s merchandise exports rose 19.63% year-on-year to $44.24 billion in July, while imports increased 17.52% to $76.22 billion, pushing the merchandise trade deficit to a six-month high of $31.98 billion.
The government had earlier taken steps to curb precious metal imports.
On May 13, it raised customs duty on precious metals, including gold and silver, to 15% from 6%, with the stated aim of reducing imports and conserving foreign exchange for essential imports such as energy and fertilisers amid the protracted war in West Asia.
The move followed a sharp increase in precious metal imports in 2025-26. Gold imports rose 24.08% year-on-year to $71.98 billion during the financial year, while silver imports surged 149.48% to $12.05 billion.
