Modi Makes Second Call This Year Urging Indian Public to Avoid Unnecessary Gold Purchases.

Indian Prime Minister Narendra Modi has called on Indian citizens to avoid buying gold unless necessary, renewing his earlier appeals to curb gold demand amid pressure on India’s economy from a widening trade deficit and a weakening rupee. The remarks come as local Indian media report the government is considering lowering import tariffs on gold and silver, after previous tariff hikes failed to stem inflows of the precious metals. This marks the second time Modi has made such a call this year. In May, he had urged Indians to refrain from purchasing gold for at least one year to conserve foreign exchange reserves. Gold is India’s second-largest import commodity after oil, and a major driver of its trade deficit. In the first four months of the current fiscal year (which began in April), India’s gold imports rose more than 32% year-on-year, further weighing on the rupee. India’s trade deficit widened to nearly $32 billion in July, hitting its highest level since January this year. Modi stated in an online video: “Don’t buy gold unless it’s necessary.” He noted that with wars disrupting global supply chains, India needs to boost economic self-sufficiency to sustain growth. He also called on the public to buy domestic products and avoid overseas trips for tourism and weddings. (Jinshi)