Indian Jewellery Industry Counters Modi’s Gold Purchase Ban Appeal
India’s gems and jewellery industry has strongly opposed Prime Minister Narendra Modi’s appeal for citizens to postpone gold purchases for one year to conserve foreign exchange. Industry bodies warn this measure threatens the livelihoods of millions and propose reviving the Gold Monetisation Scheme instead. They argue that mobilizing domestic gold reserves through recycling and digital instruments offers a sustainable solution to reduce imports and stabilize the economy without stifling demand or disrupting the sector’s significant employment base.
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Congress Criticizes PM's Gold Purchase Appeal as Harmful to Jewellery Sector
The Indian National Congress has strongly criticized Prime Minister Narendra Modi’s appeal for citizens to defer gold purchases for a year, labeling it a 'death warrant' for the country's jewellery sector. Congress leader Randeep Surjewala argued that this advisory, combined with a recent increase in import duties on gold and silver from 6% to 15%, would devast small jewellers and artisans while incentivizing smuggling. Surjewala demanded an immediate special economic relief package for the approximately 35 million people dependent on the industry, which contributes significantly to India's GDP and exports. He accused the government of undermining traditional livelihoods and cultural practices, noting that gold serves as a financial safety net for many women. The opposition also highlighted a contradiction between the government's advice to citizens and the Reserve Bank of India's recent increase in sovereign gold holdings. Surjewala alleged that these policies, alongside previous measures like demonetization and GST, disproportionately affect Micro, Small, and Medium Enterprises (MSMEs) and could consolidate the market among large corporate groups.
News Today: Breaking News, Top Headlines & Live Updates | The HinduIndian Jewellery Industry Proposes Gold Recycling Over Purchase Curbs Following Modi's Appeal
Following Prime Minister Narendra Modi's recent appeal to reduce non-essential spending and ease foreign exchange pressure, India's jewellery industry has responded with a strategic counter-proposal. Rather than supporting restrictions on gold purchases, which are deeply embedded in Indian culture as both tradition and financial savings, industry leaders advocate for enhanced gold recycling and domestic mobilization. The sector argues that curbing demand would severely impact millions of livelihoods, ranging from skilled artisans to small business owners. Instead, they propose circulating existing gold reserves within the economy as a smarter, more sustainable solution. This approach aims to balance economic stability with cultural preservation, allowing the industry to continue thriving while contributing to national financial health. By focusing on recycling, the industry seeks to mitigate the need for fresh imports, thereby addressing foreign exchange concerns without stifling consumer demand or disrupting the socio-economic fabric tied to gold ownership in India.
Times of IndiaIndia's Jewellery Industry Pushes to Revive Gold Monetisation Scheme Amid Import Curbs
Amid Prime Minister Narendra Modi’s appeal to curb gold purchases due to the West Asia conflict, India’s gems and jewellery industry is urging the government to revive and strengthen the Gold Monetisation Scheme (GMS). Discontinued in 2025, the GMS originally aimed to reduce import reliance by mobilizing household gold. Industry bodies, including the All India Jewellers and Goldsmith Federation, argue that domestic gold mobilization offers a better solution to foreign exchange issues than deferring purchases, which threatens the livelihoods of 35 million workers. Proposed reforms include shifting to a digital gold ecosystem where physical assets like jewelry and bullion are converted into dematerialized, interest-bearing financial instruments. This approach aims to fix structural bottlenecks, enhance transparency, and integrate idle gold into the formal financial system. Experts believe this revamp could significantly reduce India’s dependence on imports, ease pressure on the Current Account Deficit, and improve market efficiency. The proposal seeks to retain the existing regulatory framework while introducing greater operational efficiency and coordination among stakeholders, transforming non-yielding assets into productive tools for macroeconomic stability.
Economic TimesIndian PM Modi Urges Citizens to Avoid Buying Gold and Jewelry for One Year
Indian Prime Minister Narendra Modi has issued a sensitive and unusual appeal to the Indian population, urging citizens to refrain from purchasing gold and jewelry for a period of one year. This call to action is primarily aimed at reducing the country's significant trade deficit and curbing the outflow of foreign currency reserves. India is one of the world's largest consumers of gold, particularly during wedding seasons and festivals, which heavily impacts its current account balance. By discouraging non-essential imports of precious metals, the government aims to strengthen the Indian rupee and stabilize the national economy amidst global financial uncertainties. The appeal highlights the intersection of cultural habits and economic policy, as gold holds deep cultural and religious significance in India. This move reflects broader efforts by the Modi administration to promote financial prudence and support domestic economic stability. The request underscores the severity of the economic challenges faced by the nation and seeks public cooperation in mitigating fiscal pressures through voluntary changes in consumer behavior regarding high-value imported goods.
VK: homepageIndian Industry Bodies Propose Gold Monetisation Scheme to PM Modi
Leading gems and jewellery industry bodies in India are preparing to present a formal representation to Prime Minister Narendra Modi, advocating for the systematic implementation of the Gold Monetisation Scheme (GMS). This initiative follows the Prime Minister's recent appeal for citizens to refrain from buying gold for a year to strengthen the national economy. Industry leaders, including Nainesh Pachhigar of the Indian Bullion and Jewellers Association and Kirit Bhansali of the GJEPC, argue that restricting bullion imports could severely impact the livelihoods of nearly five million workers in the sector. Instead, they propose leveraging India's vast domestic gold reserves through the GMS, which allows individuals and institutions to deposit idle gold with banks for tax-exempt interest. Proponents assert that this approach will significantly reduce gold imports, save foreign exchange, and ensure stable employment for artisans and manufacturers. With gold import bills reaching record levels, the industry views the monetization of existing household gold as a sustainable, long-term solution that balances cultural sentiments with economic stability, offering a self-reliant model for the country's financial health.
The Indian ExpressIndian Jewellers Urge Gold Mobilisation Over Demand Suppression
The All India Jewellers & Goldsmith Federation (AIJGF) has urged the Indian government to focus on mobilising and recycling domestic gold stocks rather than discouraging purchases, following Prime Minister Narendra Modi’s appeal to defer gold buying to protect foreign exchange reserves. In a letter to Commerce Minister Piyush Goyal, AIJGF President Pankaj Arora warned that suppressing demand threatens the livelihoods of 35 million people in the jewellery sector. The federation argues that gold serves as essential savings for Indian households, not just luxury items. Instead of demand destruction, AIJGF proposes establishing a dedicated bullion bank within the GIFT-IFSC ecosystem to standardise and lend domestic gold. Additional recommendations include allowing gold ETFs to lend physical holdings, revamping the Gold Monetisation Scheme, and introducing dematerialised bullion deposit certificates. The body estimates these measures could reduce annual gold import dependence by 200-300 tonnes, saving foreign exchange without devastating the industry. They have requested an urgent inter-ministerial consultation to address these structural alternatives amidst global supply chain disruptions triggered by the West Asia war.
Economic TimesPM Modi's Gold Purchase Appeal Threatens Jewellery Industry, Says GJC
The All India Gem and Jewellery Domestic Council (GJC) warned that Prime Minister Narendra Modi’s appeal for citizens to postpone gold purchases for one year could severely impact the gems and jewellery industry. The appeal, aimed at conserving foreign exchange reserves amid the West Asia crisis, has raised concerns about stress on a sector supporting over ten million jobs directly and indirectly. GJC Chairman Rajesh Rokde highlighted the risk of 'revenge buying' and urged the government to consider alternative solutions, such as enhancing the Gold Monetisation Scheme (GMS) to unlock the value of idle household gold. Vice Chairman Avinash Gupta emphasized that while the industry respects the national interest, a robust GMS offers a more sustainable long-term solution by channeling existing gold into the formal economy, thereby reducing imports and easing current account deficit pressure without stifling demand. The potential fallout extends to connected sectors including BFSI, retail, e-commerce, and logistics. The Prime Minister made these suggestions during a rally in Hyderabad, also advocating for reduced fuel consumption and increased use of public transport to strengthen the economy.
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