Gold is not just a metal in India. It is a feeling. It is what a mother puts around her daughter’s neck at her wedding. It’s what a grandmother saves for a long time to give to her grandchild. That is what a family buys on Dhanteras, Akshaya Tritiya and all major festivals. The Golden Touch is a part of us as a Nation.
On May 10, 2026, Prime Minister Narendra Modi, in a public event in Hyderabad, announced — “For a year, at any function, do not buy gold jewellery.” The entire country looked away and froze. Jewellers went pale. Customers got confused. The jewellery industry, valued in crores of rupees, was suddenly thrust into the limelight of a national debate on which it had never imagined to be. Break it all down — simply, clearly, and in a way that anyone can understand.
What Exactly Did Modi Say?
PM Modi did not just talk about gold. He gave India a seven-point advisory — a list of seven things he requested every Indian to do (or stop doing) to help the country stay strong during tough global times.
The seven appeals included:
• Do not buy gold jewellery for at least one year
• Postpone foreign travel for a year
• Public transport, metros, and car pooling are encouraged.
• Reduce fuel and food oil usage
• Allow work from home options where practicable
• Reduce dependence on chemical fertilisers
•Don’t purchase foreign items if Indian items are available.
The gold point was the one that hit the hardest, and the fastest — from among the seven points. The answer is clear: no Prime Minister of India had ever directly asked people to refrain from purchasing gold. It felt like telling someone not to breathe.
Why Did Modi Ask This? The Real Reason Behind the Request
To appreciate Modi’s remarks, we must grasp one simple truth: India consumes almost all its gold imports.
There are no significant gold deposits in India. So we buy gold from other countries, and we pay for it in US dollars. In the financial year 2025–26, India’s gold import bill reached a massive $72 billion — up from $58 billion the year before. A lot of dollars are leaving the country.
Meanwhile, numerous issues were accumulating:
• The rupee was falling against the dollar
• The conflict between the US, Israel, and Iran in West Asia was driving up oil prices
• Foreign investors were pulling money out of Indian stock markets — they sold shares worth over ₹1.81 lakh crore in 2025–26 alone
• Foreign direct investment (FDI) coming into India had also fallen sharply
Put it all together and India was spending a lot of dollars and earning less dollars. This puts pressure on the country’s foreign exchange reserves — the money India keeps aside to handle emergencies and pay for imports.
The simple message Modi sent was that if Indians buy less gold, India spends less dollars, and the rupee remains stronger. It was a call to sacrifice for the nation, to make small decisions to contribute to the larger society.
How the Jewellery Industry Reacted — And Why It Was So Shocked
It was like a thunderbolt on a sunny day for jewellers all over India. The jewellery store owners, craftsmen, goldsmiths, and all those involved in the business ran into panic mode. This was the depth of the shock:
Jewellery isn’t simply a business. It is a livelihood. From the goldsmith working in a small shop beating metal and earning money, to the salesman in a large showroom, to the delivery person who carries out the orders, everyone in India relies on gold jewellery for their livelihood.
Ground-level jewellers said the number of walk-in customers had dipped significantly in the days following Modi’s announcement. One employee at a jewellery shop commented, “At least they would’ve put out a message six months ago, otherwise it’s a huge challenge for us to say ‘no gold sales, no gold sales’.
Another jeweller said that they were already getting customers coming in to sell their old gold, not to buy new gold, and with this announcement, they saw even those customers who were pondering buying gold were put into a “wait and watch” phase.
The industry also indicated that almost one-third of the gold imports into India are for the purpose of manufacturing export jewelleries. This is because if the demand for gold declines, it not only affects local businesses, it could also affect India’s jewellery exports which would remove even more dollars from the country. It is not what Modi had in mind.
What Does This Mean for Indian Weddings and Traditions?
This was the section which moved the most people.
The gold and the wedding are synonymous in India. Many families invest years — even decades — of saving money to purchase gold for their children’s weddings. It is not a luxury to buy gold for a daughter’s wedding for millions of middle-class and lower middle-class families. It is also a cultural responsibility and financial protection, as the value of gold remains constant over time.
Modi’s advice had landed a lot of families in a tricky situation. If they are getting married in the fall of this year, do they wait? Do they upset the family traditions? If they delay, do they run the risk of seeing gold prices increase even further?
The solution, say experts, is that the advice is primarily aimed at those who are purchasing gold for investment or impulse — not those who have an actual need such as a marriage to prepare for.
However, the blunder created lots of anxiety. It was a strange feeling to be told to stop buying gold even for a year for a nation where it’s as natural as breathing.
We at Dishis Designer Jewellery know this feeling well. Jewellery is not merely a purchase, it is a memory, a milestone, and part of your family’s story, in gold jewellery.
The Shift to Digital Gold — Is It the Answer?
The one interesting fact that has emerged from all this is that digital gold and gold ETFs (Exchange Traded Funds) are gaining traction.
Digital gold allows you to purchase small quantities of gold without having to receive a bar or a coin. Gold ETFs operate in a similar fashion – they are traded on the stock exchange, and they track the price of gold.
India is currently witnessing a huge shift in this direction. Overall investment demand for gold has surged over 170% YoY in 2025, primarily attributable to the growth of gold ETFs. Meanwhile, demand for physical jewellery declined by 25% in volume, although it increased by 3% in value due to an increase in gold prices.
This digital gold market in India will expand by 30-35% to nearly ₹9,841 crore by 2026-27.
The Gen Z and millennials are particularly interested in digital gold, as it is convenient, readily available, and does not involve shopping. They are able to invest small amounts on a regular basis, monitor prices on their phone and sell whenever they wish.
However, there is a problem here—gold in the digital form is not the same as a gold necklace. One is a number that will appear on your phone display. The other one’s something that you hold, wear, feel, and pass down over the course of the generations. In most of the Indian families, physical gold jewellery is more than just a piece of jewelry, it is an emotion. For most Indian households, physical gold jewellery holds more significance than any digital asset.
What Jewellers Are Doing to Adapt
Smart jewellers are not sitting still. They’re trying to make the best of this new reality.
A lot of jewellery stores are now providing gold exchange programs, where a person brings in the outdated gold jewellery and acquires new designs in exchange for it. This means that there is no need to import “new” gold. The customer receives a new look, the jeweller makes a sale and there is no new gold added to the system.
Others are looking for lightweight jewellery, beautiful pieces that incorporate less gold but are still stunning. As gold prices have soared (with domestic prices touching close to ₹99,000 per 10 grams at their peak), lighter designs have become more popular anyway, as they are easier on the wallet.
Some jewellers are also branching out into diamond and gemstone jewellery – a product that does not rely on gold imports as much.
The industry is strong. It survived demonetisation, GST changes and the pandemic COVID-19. This too shall pass!
What Should You Do Now? A Simple Guide
So if you’re just a regular person who is curious about gold these days, here’s a quick tip:
• If you must have gold for a wedding or a family gathering, which is already planned — do it. This was not a purchase that Modi’s advisory was aimed at. Be sure to purchase from a reputable, hallmarked retailer.
• If you’re on the fence about purchasing gold just in case or as an investment — it may be worth considering investing in digital gold or gold ETFs instead. They allow you to benefit from the appreciation of gold, without burdening the import costs.
• If you are a jewellery connoisseur and are looking to reinvigorate your jewelry collection — consider a gold exchange or beautiful lightweight pieces or diamond jewellery, which offer the same level of bliss for a lower cost.
Regardless of the type of product you select, ensure that it comes from a reputable source.
We have always thought that jewellery should be a source of pleasure and not stress at Dishis Designer Jewellery. Whether you are looking for a wedding, a festival, or just something beautiful, our extensive selection of designs ensures you’ll discover the perfect piece that resonates with your spirit.
Conclusion — Gold is still Gold
Modi’s “don’t buy gold” was not an attack on Indian culture. It was a real request for short term pain for long term gain, in order to maintain the economy of the country in a challenging period. But it brought us all back to the realization that who we are is very much bound up in gold. No advisory can easily divorce Indians from their love of gold, irrespective of how well-meaning it is. It will be some challenging months for the jewellery industry but it will get its footing as the demand, the love and the tradition will not go anywhere.
Gold prices may go up and down. The price of import bills can fluctuate. Governments can change their minds about their counselors. But the moments when a bride wears gold jewellery, a gold bangle on a baby’s wrist, a gold chain to mark a hard-earned milestone are all eternal. Just like always, Dishis Designer Jewellery is here to capture those ever-lasting moments with you, designed with care and made to be cherished for a lifetime — with a nod back to that Indian belief of gold.
0 Comments