A call for austerity from Prime Minister Narendra Modi amid global economic uncertainty has raised concerns among India’s gold jewellery industry, which fears a potential impact on demand and employment.
The Prime Minister on Sunday urged citizens to defer gold purchases, noting that large-scale imports of the precious metal place pressure on the country’s foreign exchange reserves.
Jewellers, however, say gold demand in India is driven by deep cultural and social traditions, particularly weddings and family occasions, and is unlikely to fall significantly.
Raman Jain, a jeweller, said such purchases would continue despite the appeal, while others argued that austerity measures should not be limited to one sector.
Industry representatives warned of wider economic consequences, with the All India Gem & Jewellery Council estimating that millions of artisans and workers could be affected if demand declines sharply.