Modi Urges Indians to Avoid Buying Gold Unless Necessary

Indian Prime Minister Narendra Modi stated on September 1 that Indians should refrain from purchasing gold unless absolutely necessary, in order to address the widening trade deficit and the pressure on the economy from a weakening rupee. This is the second time this year that Modi has made such a call; back in May, he urged citizens to avoid buying gold for at least a year to conserve foreign exchange reserves. Gold is India's second-largest import commodity after oil and a significant contributor to the trade deficit. In the first four months of the current fiscal year, which began in April, India's gold imports surged by over 32% year-on-year, exacerbating the pressure on the rupee. India's trade deficit in July expanded to nearly $32 billion, the highest level since January of this year. In a video message, Modi emphasized that as wars disrupt global supply chains, India needs to enhance its economic self-sufficiency to sustain growth and urged citizens to buy local products, avoiding overseas travel and purchases for weddings and other events.