Jewellers’ associations across the country are planning to approach the Prime Minister’s Office (PMO) to express concern over Prime Minister Narendra Modi’s remarks urging consumers to go slow on gold jewellery purchases over the next year in order to help reduce India’s import bill amid growing global uncertainty.

Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council, said the council is seeking an appointment with the PMO to discuss the issue in detail.

“Our objective is to present long-term solutions that can make India truly self-reliant by channelling idle household gold into the formal economy, rather than depending heavily on imports. This dialogue will be crucial in aligning industry practices with national priorities while safeguarding livelihoods and consumer trust,” he said.

Sharp reactions

Modi made the remarks at a rally in Secunderabad on Sunday, where he suggested a range of measures to curb foreign exchange outgo, including reducing fuel consumption by using public transport, opting to work from home and limiting foreign travel.

The comments triggered sharp reactions from jewellers, particularly in Lucknow, where traders called for a market shutdown. The Lucknow Mahanagar Sarafa Association announced a one-day shutdown on Monday, warning that the remarks could severely hurt artisans and traders during the crucial wedding season.

India’s jewellery demand is already hovering near a 30-year low due to elevated gold prices and weak consumer sentiment. Industry estimates suggest that any slowdown in gold jewellery sales could affect more than one crore people employed in the sector.

Dr C Vinod Hayagriv, managing director of C Krishniah Chetty Group, said structural reforms could help address the import issue more effectively.

Not short-term measures

“A simple structural reform permitting the sale of raw bullion only to GST-registered buyers can immediately reduce unnecessary imports, improve transparency and strengthen the organised jewellery ecosystem,” he said.

“This is not a short-term measure but a long-term economic safeguard that can benefit the country for years to come. India must encourage value-added consumption of gold rather than idle locker-based investments that do not support the broader economy,” he said.

Gold is India’s second-largest imported commodity after crude oil. Higher demand for gold jewellery leads manufacturers to import more bullion, increasing pressure on the rupee and widening the current account deficit (CAD), which tends to rise sharply when both crude and gold imports surge. The CAD reflects the gap between foreign exchange inflows into India and money spent on imports.

The market reaction was swift, with jewellery stocks tumbling amid fears of weaker consumer demand. Shares of Titan Company fell 7 per cent, while Kalyan Jewellers and PNG Jewellers declined 9 per cent and 8 per cent respectively. Senco Gold & Diamonds dropped 11 per cent. The decline came despite most jewellery companies reporting stronger earnings for the March quarter.

Published on May 11, 2026