Editor’s Note
Prime Minister Modi’s recent appeal to refrain from gold purchases has sent ripples of concern through India’s jewelry industry, with traders and small business owners voicing alarm over potential economic fallout.
Prime Minister Narendra Modi’s appeal to citizens not to buy gold for one year, made during a public rally in Hyderabad on May 10, 2026, has caused significant upheaval in the jewelry industry. Jewelry traders, goldsmiths, and small business owners across the country, including Delhi, are deeply concerned by this appeal.
Brijesh Goyal, Chairman of the Chamber of Trade and Industry (CTI), discussed the issue in detail, stating that hundreds of traders contacted him immediately after the appeal, expressing their deep concern. Goyal said that the peak wedding season is underway, and this appeal from the Prime Minister is expected to cause a sharp decline in demand for ornaments and jewelry.
India is the world’s second-largest consumer of gold after China. According to CTI, the country consumes an average of 700 to 800 tons of gold annually. Brijesh Goyal says that following PM Modi’s appeal, gold consumption could drop from 800 tons to 500 tons.
The CTI Chairman warned that if gold sales remain affected for a year, small jewelers, goldsmiths, and artisans could face significant difficulties in paying their employees. In such a scenario, they may be forced to lay off staff in many places. Jewelers believe that such an appeal creates a climate of fear among customers, which could significantly reduce gold sales, especially during the wedding season.
CTI General Secretary Gurmeet Arora and Ramesh Ahuja said that gold is not just a metal or an investment tool, but is deeply connected to Indian culture. Jewelry is considered almost mandatory in weddings. Therefore, this appeal is creating a challenging time not only for the jewelry industry but also for the general public.
According to CTI, the shares of major listed jewelry companies like Titan, Senco Gold, and Kalyan Jewellers could also be negatively impacted by this appeal. Brijesh Goyal further stated that this appeal could prove to be a major setback for the jewelry industry. Therefore, the industry will now have to adopt new strategies to maintain its business activities.
