In its latest report, GTRI stated that the growing demand for imported bullion has become a major economic concern for India, which depends almost entirely on imports to meet domestic gold consumption. The think tank noted that gold bar imports surged significantly from $36.5 billion in 2022 to $58.9 billion in 2025, intensifying the strain on India’s trade balance.
The endorsement came shortly after PM Modi appealed to citizens to postpone non-essential gold purchases, including wedding-related buying, in view of ongoing global economic uncertainty. The Prime Minister emphasized that reducing discretionary imports could help protect India’s foreign exchange reserves during a period of heightened geopolitical and financial instability.
Alongside supporting the Prime Minister’s appeal, GTRI also urged the government to reassess tariff concessions granted under the India-UAE Free Trade Agreement. According to the think tank, concessional duties on precious metals imported from Dubai have played a major role in accelerating gold imports into India.
The organization recommended a review of the existing policy framework to safeguard India’s foreign exchange reserves and reduce dependence on imported bullion.
Union Minister Ashwini Vaishnaw also echoed the Prime Minister’s concerns and called on citizens to curb import-related spending wherever possible. Speaking at the CII Annual Business Summit 2026 in New Delhi, Vaishnaw stressed that the prolonged conflict in the Middle East and disruptions in the Strait of Hormuz were continuing to affect the global economy and energy supply chains.
He said the ongoing geopolitical tensions had made foreign exchange conservation more important than ever and urged citizens, businesses, and industries to contribute by reducing unnecessary expenditure on imported goods and increasing foreign exchange earnings.
Vaishnaw further highlighted that conserving forex reserves should begin with everyday decisions, including cutting down fuel consumption such as diesel and petrol usage. He emphasized that collective efforts from individuals and industries could help strengthen India’s economic resilience during a volatile global environment.
Meanwhile, the government’s appeal triggered a sharp reaction in the stock market, particularly among jewellery companies, as investors feared a potential decline in consumer demand.
Shares of Senco Gold fell 8.69% or 31 points to 333 on the BSE, while Titan Company declined 6.45% or 291 points to 4,222. Kalyan Jewellers dropped 8.3% to 389, and PC Jeweller slipped 3.26% to 9 during intraday trading, reflecting market concerns over a possible slowdown in gold demand following the Prime Minister’s remarks.
