Jewellery associations are set to hold a meeting with officials from the Prime Minister’s Office (PMO) on Tuesday, May 12, according to a CNBC-TV18 report citing sources. This follows Prime Minister Narendra Modi’s recent appeal urging citizens to temporarily avoid buying gold and cut down on non-essential spending for the next year. During a public rally in Hyderabad on Sunday, PM Modi encouraged people to adopt a more cautious spending approach amid economic uncertainty.
He asked citizens to reduce avoidable consumption, delay discretionary expenses such as gold purchases and overseas travel, conserve energy and support locally made products.
The Prime Minister’s remarks have triggered conversations across the jewellery industry, which is now expected to discuss the broader implications of the appeal with government officials.
PM Modi’s comments come at a time when India is grappling with mounting pressure on its foreign exchange reserves. Elevated global commodity prices and persistent uncertainty in international supply chains have increased concerns over external vulnerabilities.
According to official data,India’s forex reservesdeclined by $7.794 billion to $690.693 billion during the week ending May 1.
India continues to rely heavily on imports for key commodities including crude oil, edible oils, fertilisers and gold. This dependence leaves the economy exposed to fluctuations in global prices and geopolitical disruptions that can strain the rupee and widen trade pressures.
Gold, in particular, remains a major contributor to India’s import bill. The country consumes nearly 700 to 800 tonnes ofgoldannually, while domestic production remains limited to only about 1 to 2 tonnes. As a result, over 90 per cent of India’s gold demand is met through imports.
Record Gold Imports Raise Economic Concerns
Despite its cultural and investment appeal, gold imports contribute significantly to foreign currency outflows without offering major gains to industrial output or exports.
India’s gold imports surged to an all-time high of $72 billion in FY26, marking a sharp 24 per cent increase compared to $58 billion recorded in FY25.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
