India PM urges citizens to reduce gold purchases as imports surge 32%
MacroCommodityDigital Finance
Indian Prime Minister Narendra Modi has urged citizens to avoid buying gold unless necessary, in order to reduce imports and ease pressure on the rupee amid a widening trade deficit. India's gold imports surged more than 32% in the first four months of the fiscal year starting in April, and the trade deficit in July hit nearly $32 billion, the highest since January. Modi said in a video on platform X, "If not necessary, don't buy gold," while also urging citizens to support domestic goods and reduce travel abroad. This is the second time this year he has asked citizens to reduce gold purchases, after in May he requested Indians to refrain from buying gold for at least one year to preserve foreign exchange reserves, amid reports that the government may consider reducing import taxes on gold and silver after previous tax hikes proved ineffective. Gold is India's second-largest import item after oil, and India is the world's second-largest gold buyer.
