6 In 10 Indians Reconsider Gold Purchases After PM Modi’s Appeal: Survey

A survey shows many Indians may cut non-essential gold purchases after PM Modi urged citizens to help protect forex reserves.

Survey finds many Indians may avoid non-essential gold buying after PM Modi’s forex appeal.

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• Survey shows 61% of buyers plan reduced gold purchases.

A growing number of Indians appear willing to cut back on non-essential gold purchases after Prime Minister Narendra Modi urged citizens to help protect the country’s foreign exchange reserves, according to a new LocalCircles survey. The report found that 61% of people who regularly buy gold said they would avoid unnecessary purchases over the next year. The findings come as India’s gold import bill has surged sharply amid rising global prices and economic uncertainty, increasing pressure on the country’s foreign currency reserves despite a slight decline in import volumes.

Gold Import Bill Surges

According to the report, India imported nearly USD 71.98 billion worth of gold during the 2026 financial year, marking an increase of more than 24% from USD 58 billion recorded in 2025.

While the actual quantity of imported gold dipped marginally, soaring international prices pushed the overall import bill to a record high. The report also noted that combined imports of gold and silver rose to around USD 102.5 billion.

The issue has become a growing concern for policymakers amid continuing geopolitical tensions and global market volatility. 

Buying Behaviour Changes

The survey, conducted among 84,000 respondents, suggested that the Prime Minister’s appeal may already be influencing consumer sentiment.

Around 28% of respondents said they planned to significantly reduce gold purchases, while 36% stated they did not intend to buy gold at all over the next year.

Another 66% of respondents agreed that temporarily limiting gold purchases could help strengthen India’s foreign exchange reserves during a period of economic uncertainty.

However, not everyone is ready to change long-standing buying habits. Around 19% of participants said they would continue purchasing gold for weddings, festivals and family traditions despite the government’s appeal.

Some respondents also maintained that gold remains one of the safest investment options during uncertain times and said they would continue investing in the precious metal regardless of official advice.