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A new survey has found that nearly 61% of Indian gold owners and buyers may avoid purchasing gold for a year following Prime Minister Narendra Modi’s recent appeal to reduce non-essential gold buying in order to conserve foreign exchange reserves.

The findings come at a time when India’s gold imports have reached record levels amid rising global prices and ongoing economic uncertainty linked to geopolitical tensions and higher crude oil costs.

PM Modi Urges Citizens To Reduce Gold Purchases

Prime Minister Modi recently asked citizens to avoid unnecessary gold purchases for one year, saying India needs to conserve foreign exchange reserves. The appeal was made during a public event in Hyderabad.

India remains the world’s second-largest gold consumer after China, with gold imports placing significant pressure on the country’s trade balance and foreign exchange outflows.

Survey Highlights Shift In Consumer Sentiment

According to the LocalCircles survey, 61% of respondents indicated they are likely to either completely avoid or significantly reduce gold purchases over the next year.

The survey reportedly received more than 84,000 responses from gold buyers and owners across 295 districts in India.

Among respondents, 28% said they would significantly reduce their gold purchases, while 36% said they were unlikely to buy gold at all during the next 12 months.

Weddings And Investment Demand Continue

Despite the broader shift, a section of buyers said they would continue purchasing gold because of cultural and financial reasons. According to the survey, 19% of respondents said weddings and family traditions would still require gold purchases. Another 19% said they consider gold the safest investment during uncertain times.

Gold continues to play a major role in Indian households, especially during festivals, weddings, and as a long-term savings instrument.

Gold Imports Hit Record Levels

India’s gold imports rose more than 24% year-on-year to a record $71.98 billion in FY26, according to data cited in the survey report.

However, gold import volumes reportedly declined by 4.76% to 721.03 tonnes, indicating that higher international gold prices were the primary reason behind the increase in import value.

Gold and silver imports together accounted for around 14% of India’s total imports during FY26, up from 11.8% in the previous financial year.

Jewellery Industry Raises Concerns

The Prime Minister’s appeal has also triggered concerns within India’s jewellery industry. Trade bodies and jewellers warned that prolonged reduction in gold demand could impact employment and businesses linked to the jewellery ecosystem, including artisans, designers, transporters, and retailers.

At the same time, some industry groups have renewed calls for stronger gold monetisation schemes aimed at reducing import dependence while maintaining domestic gold circulation.