Prime Minister Narendra Modi said Indians should avoid buying gold for one year during a public address in Hyderabad on May 10 [1].

The appeal targets a significant cultural driver of the Indian economy to protect the national currency and stabilize financial reserves. By discouraging the purchase of the yellow metal, the government aims to reduce the amount of foreign currency leaving the country to pay for imports.

Modi's request comes as India faces economic pressure from rising crude oil prices and the ongoing crisis in West Asia [2, 3]. Because India imports a large portion of its gold and oil, these factors increase the demand for foreign currency, putting pressure on the domestic exchange rate [3, 4].

This call for restraint specifically targets those planning weddings, as gold is a central component of matrimonial celebrations in India [5]. The government is seeking a voluntary reduction in demand to mitigate the impact of external geopolitical shocks on the economy [2, 4].

Some financial data suggests the current reserves remain strong. India's foreign-exchange reserves stood at $691.11 billion at the end of March 2026 [6]. This amount provides enough cover for nearly 11 months of imports [6].

Despite these robust figures, the administration is acting preemptively to avoid a sharper decline in reserves. The volatility of oil prices tied to the West Asia conflict makes the current economic environment unpredictable [3, 4].

Modi said the measure is necessary to ensure long-term economic stability. The appeal relies on the cooperation of the public rather than legislative mandates, or new taxes on gold imports [2, 5].

“PM Modi asked Indians to avoid buying gold for one year”

The appeal represents a strategic attempt to manage the current account deficit through social persuasion rather than policy shifts. While India maintains a significant cushion of forex reserves, the government is prioritizing the preservation of these assets to hedge against the unpredictable costs of energy imports driven by the West Asia conflict.