Gold Can Wait. India’s Economic Stability Cannot

Rajkumari Sharma Tankha

Few commodities in India carry the emotional, cultural and financial significance of gold.

It is more than a precious metal. It is inheritance, security, celebration and status woven deeply into the country’s social fabric. From weddings and festivals to family investments, gold occupies a near-sacred place in Indian households.

Which is precisely why Prime Minister Narendra Modi’s appeal asking citizens to avoid buying gold at this moment is not a routine economic advisory. It is a serious call for restraint.

To some, the suggestion may appear impractical. After all, we tie gold buying to sentiment, not just savings. But if you think deeply, there is a larger economic truth that we cannot ignore. And that is, excessive gold imports put pressure on the nation’s foreign exchange reserves and current account stability.

At a time when we are facing global economic uncertainty, energy market disruptions and geopolitical tensions, discretionary gold imports are an avoidable burden. So, it is time we recognise that patriotism demands postponing personal indulgence.

A National Interest Above Individual Preference

India is one of the world’s largest consumers of gold. While we hold one of the largest private household gold reserves globally, we are also importing hundreds of tonnes of gold annually.

And, this paradox is concerning. Says Rajesh Rokde, Chairman of the Gem and Jewellery Council (GJC), “India’s economic strength must always come before individual preferences. PM’s appeal regarding responsible gold consumption reflects the larger national concern of rising imports and pressure on foreign exchange reserves. We have thousands of tonnes of idle household gold. There should be a two-pronged approach. Don’t buy and also unlock the immense value of existing gold through a transparent and regulated Gold Monetisation Scheme (GMS).”

Rokde is right. We are not short of gold, but surely short of productive use of gold. A vast stockpile of household gold lies dormant in lockers, cupboards and vaults across the country. This neither serves economic productivity nor national financial efficiency. Yet every year, fresh imports continue to drain valuable foreign exchange. This is economically irrational.

The Untapped Opportunity in India’s Lockers

So, the real issue is not gold ownership. It is gold inactivity. A revitalised Gold Monetisation Scheme offers a practical middle path — preserving household ownership while integrating dormant assets into the formal financial system. As Rajesh Rokde notes, a stronger jeweller-integrated GMS could mobilise idle household gold and reduce dependence on imports. IT would strengthen the formal economy and improve transparency and traceability. Further, it would convert dormant gold into productive national capital. Nation First. Responsible Gold Ecosystem Next,” says Rokde.

Sentiment Must Meet Strategy

We need smarter gold economics. For generations, gold has represented security for Indian families, especially women. It has often served as an informal financial safety net during crises. Any conversation around restricting gold purchases must therefore acknowledge this deeply embedded trust.

Talking about it Avinash Gupta, Vice Chairman of GJC, says, “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. We believe that a robust and regulated GMS can be a long-term solution. Instead of gold locked in households and lockers, GMS can channel it into the formal economy. It would reduce imports, ease CAD pressure and strengthen India’s financial ecosystem. The answer lies not only in consuming less gold, but in utilising existing gold more efficiently, transparently and productively.”

This is the crucial distinction. The Prime Minister’s message should not be misunderstood as anti-gold. It is pro-economic prudence. The goal is not to sever India’s cultural relationship with gold, but to modernise it.

The Bigger Economic Picture

Our country is facing multiple external pressures. Volatile oil prices, fragile global trade routes, geopolitical uncertainty and inflationary risks. All of these put pressure on foreign exchange reserves. Gold imports, particularly during uncertain times, intensify that strain.

Every unnecessary import widens the current account deficit. Every widened deficit weakens macroeconomic flexibility. In such circumstances, we the people are not merely consumers. We are economic stakeholders.

Just as governments make fiscal adjustments during difficult periods, responsible consumer behaviour can become part of national resilience. Delaying discretionary gold purchases is not a sacrifice in the conventional sense. It is participation in economic stability.

The Prime Minister’s appeal is not about denying tradition. It is about aligning tradition with modern economic responsibility. India’s relationship with gold need not weaken. It simply needs to grow wiser.

And sometimes, wisdom means recognising that while gold will always shine, national stability must shine brighter.