PM Modi Asked Indians To Skip Gold. Festivals Will Put That To The Test

The upcoming festive season brings a fresh test for Prime Minister Narendra Modi's appeal to Indians to avoid buying gold unless necessary.PM Modi first urged people in May to postpone non-essential gold purchases for a year to help conserve foreign exchange amid the economic fallout of the Iran war conflict. He renewed the appeal in September, advising people to buy gold only when necessary. However, India has entered the season when gold buying traditionally picks up, with festivals and weddings driving demand.Why Gold Is A Forex ConcernIndia imports most of the gold it consumes. In the second quarter of 2026, imports accounted for 82 per cent of India's gold supply, with recycling making up much of the rest. Therefore, every surge in physical gold demand can translate into higher import requirements and dollar outflows. And the concern is not theoretical.