Why PM Modi wants Indians to avoid buying gold for a year

AI Summary

Prime Minister Modi is advising citizens to refrain from purchasing gold for a year, aiming to stabilize foreign exchange reserves amidst a surge in imports that have negatively affected the trade balance. This directive reflects ongoing economic challenges linked to international trade tensions.

Prime Minister Modi urged Indians to halt gold purchases for a year to protect foreign exchange reserves, a call supported by GTRI which highlighted a surge in gold imports straining the trade balance. Union Minister Ashwini Vaishnaw echoed the appeal, emphasizing reduced import spending amid Middle East conflict, leading to a sell-off in jewellery stocks.