Modi asks Indians to stop buying gold as oil prices strain economy
Indian Prime Minister Narendra Modi has urged citizens to delay buying gold for a year as soaring oil prices and mounting import costs place growing pressure on the country’s economy.
Speaking in Hyderabad, Modi also called on Indians to work from home where possible and avoid unnecessary overseas travel, framing the measures as ways to reduce pressure on India’s current account deficit amid disruptions in the Strait of Hormuz.
But it was the appeal to postpone gold purchases that stood out most in a country where gold is deeply tied to household savings, weddings and cultural traditions.
India imports nearly 85% of its gold requirements, making it one of the world’s most gold-dependent economies. Gold imports jumped 24% in April to a record $71.98 billion, according to the article, adding to concerns over the country’s widening trade deficit as oil prices climb.
The call comes as Brent crude prices surged beyond $107 per barrel following tensions around the Strait of Hormuz, a vital shipping route through which roughly a fifth of the world’s oil supply passes. India imports about 88% of its crude oil, with up to half historically flowing through the strait.
Still, the appeal may resonate unevenly across India. For millions of households, gold functions not as a luxury purchase but as a form of savings and financial security, particularly in areas with limited access to formal banking and investment products.
This story is written and edited by the Global South World team, you can contact us here.
