Traders, artisans and jewellery firms raise concern over PM Modi's appeal to delay buying gold for a year

The GGJEPC said the industry understood the larger national concerns and would stand with the government during challenging times.

Mumbai: Prime Minister Narendra Modi’s appeal urging Indians to avoid purchasing gold jewellery for a year in view of the prevailing global economic situation sent shockwaves across Mumbai’s bullion and jewellery market on Monday, triggering concern among traders, artisans and jewellery companies.

Mumbai’s iconic Zaveri Bazaar—the country’s largest gold trading hub—witnessed anxious discussions among jewellers and artisans over the possible impact on business sentiment and consumer demand, while shares of major jewellery firms took a sharp hit on Dalal Street.

Shares of Titan Company, Kalyan Jewellers India, Senco Gold and Sky Gold & Diamonds, among others, declined significantly during Monday’s trading session following the Prime Minister’s remarks, reflecting investor concerns over a potential slowdown in gold jewellery sales.

Gold continues to hold deep cultural, emotional and financial significance in Indian households, particularly during weddings and festivals, making the Prime Minister’s statement one of the most talked-about developments in the bullion sector.

The remarks also triggered wider political reactions across the country, even as industry bodies attempted to strike a balance between supporting the government’s appeal and protecting livelihoods linked to the sector.

The Gem and Jewellery Export Promotion Council (GJEPC) said the industry understood the larger national concerns and would stand with the government during challenging times.

“The gem and jewellery industry fully understands and respects the appeal made by the Prime Minister in view of the current global situation and the larger national interest. As responsible stakeholders, we stand with the nation during challenging times,” said Kirit Bhansali, Chairman, GJEPC.

He pointed out that the sector is among the country’s largest employment generators, supporting nearly five million workers, artisans and small businesses.

“The industry will continue to work responsibly while safeguarding these livelihoods,” he added.

Bhansali said the Indian gem and jewellery industry has historically demonstrated resilience during difficult policy phases, including the Gold Control Act era and the 80:20 import rule regime.

“We are currently consulting industry stakeholders and will collectively work towards balanced and practical solutions for the way forward while continuing to support the national interest,” he said.

The All India Gem and Jewellery Domestic Council (GJC) said the focus should also be on mobilising the massive stockpile of idle household gold already available in the country.

“India’s economic strength must always come before individual preferences. The Prime Minister’s appeal regarding responsible gold consumption reflects the larger national concern of rising imports and pressure on foreign exchange reserves,” said Rajesh Rokde, Chairman, GJC.

“At the same time, India already possesses thousands of tonnes of idle household gold. The solution may not lie only in reducing demand but also in unlocking the immense value of existing gold through a transparent and regulated Gold Monetisation Scheme,” he added.

According to Rokde, a revitalised jeweller-integrated Gold Monetisation Scheme (GMS) could help mobilise idle household gold, reduce import dependence, strengthen the formal economy and improve transparency and traceability in the sector.

“The idea should be Nation First, Responsible Gold Ecosystem Next,” he said.

Avinash Gupta, Vice Chairman, GJC, said the industry respected the Prime Minister’s larger economic vision but stressed the need for long-term structural reforms rather than demand suppression alone.

“Gold has always been emotionally and culturally connected to Indian households. But today, the nation also faces the challenge of balancing gold demand with economic stability,” Gupta said.

“Instead of idle gold remaining locked in households and lockers, a robust and regulated Gold Monetisation Scheme can channel it into the formal economy—reducing imports, easing current account deficit pressure and strengthening India’s financial ecosystem,” he added.