Up to 61% of gold owners and buyers said they would avoid buying gold for a year following Prime Minister Narendra Modi's appeal to curb non-essential purchases to help conserve foreign exchange reserves, according to a survey by LocalCircles. The findings come as India's gold imports touched a record high in FY26, increasing pressure on foreign exchange outflows at a time of global economic uncertainty linked to military tensions between the US and Israel. As reported by LocalCircles, 66% of respondents said avoiding gold purchases for a year would help conserve foreign exchange reserves. However, the survey reveals that 20% of gold buyers still plan to purchase the yellow metal despite the prime minister's appeal, driven by weddings, traditions and investment safety concerns.
India imported $71.98 billion worth of gold in FY26, up more than 24% from $58 billion in FY25, according to commerce ministry data cited in the LocalCircles report. However, gold import volumes fell 4.76% year-on-year to 721.03 tonnes from 757.09 tonnes, indicating that higher global prices drove the rise in import value. According to the report, gold prices rose from approximately $76,617 per kg in FY 2024-25 to approximately $99,825 per kg in FY 2025-26. Gold and silver imports together rose 26.7% year-on-year to $102.5 billion in FY26, with their share in India's total imports increasing to 14% from 11.8% in the previous fiscal.
Another 19% said they would continue buying gold only for weddings or family traditions despite the prime minister's appeal, according to the LocalCircles report. A further 19% said they would continue purchasing gold because they viewed it as the safest investment during periods of uncertainty. Of the 84,000 responses surveyed, 28% said they would "significantly" reduce gold purchases, while 7% said they would postpone only discretionary gold purchases. Additionally, 7% said they would shift from jewellery buying to digital gold, ETF or Sovereign Gold Bonds (SGB), while 8% said they would continue buying gold for weddings or traditions. Prime Minister Modi last week urged citizens to avoid non-essential gold purchases for one year, saying "We have to save foreign exchange by any means," he said at an event in Hyderabad.
The survey reveals that 17% of respondents said they would buy gold only if "absolutely necessary," while 6% said fear of further price increases could push them to make purchases. As reported by LocalCircles, the findings indicate that for the small segment of buyers who will continue with gold purchases, weddings and traditional commitments along with investment safety in uncertain times remain the dominant motivators. Despite the majority backing temporary restraint, the survey underlined that gold continues to hold deep cultural and financial significance for Indian households, with the nationwide survey receiving more than 84,000 responses from gold owners and buyers across 295 districts.
