PM Modi Urges Caution on Gold Purchases

With India recording strong economic growth, Prime Minister Narendra Modi has urged citizens to embrace the principles of “Swadeshi” and “Vocal for Local”. He asked people to reduce non-essential spending abroad, avoid overseas weddings and refrain from buying gold unless it is necessary. Modi said giving preference to Indian products and services would help strengthen domestic demand and support the country’s journey towards greater self-reliance.

The appeal has renewed attention on India’s gold imports and merchandise trade deficit. Gold imports rose 4.77% year on year to $4.16 billion in July, while the merchandise trade deficit widened to $31.98 billion. While gold imports add to the import bill and have implications for India’s external balance, the trade deficit is also driven by other major imports such as electronics, crude oil and fertilisers. Modi’s broader message was to encourage domestic consumption and reduce unnecessary overseas spending as part of the Swadeshi push.