PM Modi Urges Caution on Gold Imports to Curb Trade Deficit

Prime Minister Narendra Modi recently appealed to citizens to curb gold purchases, warning that high imports significantly swell the country’s trade deficit. Despite the cultural affinity for the metal, the government is concerned about the impact on the national economy and the strength of the Rupee. The appeal comes at a time when price movements in September showed a rise, suggesting that demand remains resilient despite high import duties. Economists argue that a reduction in physical gold demand could free up capital for more productive sectors of the economy, though tradition continues to drive seasonal buying.