Narendra Modi recently appealed to Indians to reduce gold purchases for one year mainly because India imports massive amounts of gold using foreign exchange reserves. With rising geopolitical tensions in West Asia increasing pressure on oil prices and imports, the government wants citizens to help reduce unnecessary foreign currency outflow.
Gold imports heavily impact India’s trade deficit, especially during wedding seasons. The Prime Minister’s message is being viewed as an economic cautionary step rather than a ban. People have shown mixed reactions. Some people support the national-interest appeal, while others feel gold remains emotionally and culturally important for Indian families. Even the 7 big appeals also mentioned choosing work from home for companies.