New Delhi, May 11, 2026 — Indian Prime Minister Narendra Modi has urged citizens to refrain from purchasing gold for one year, particularly during weddings, as the country faces mounting economic pressure from soaring global oil prices and a weakening rupee.
The appeal comes amid escalating tensions in the Middle East and instability around the Strait of Hormuz, which have driven crude oil prices sharply upward. According to reports, global oil prices have jumped from around $70 to $126 per barrel within weeks, significantly increasing India’s import costs.
India imports nearly 85 percent of its crude oil requirements and is also one of the world’s largest importers of gold. Since both commodities are purchased in US dollars, rising imports have intensified demand for foreign currency, putting additional pressure on the Indian rupee.
Economists say that while fuel imports are essential for transportation and industry, gold purchases are considered largely non-essential or luxury spending. As a result, reducing gold imports is being viewed as a strategy to conserve foreign exchange reserves and stabilize the currency during the ongoing global energy crisis.
Modi also called on citizens to adopt broader austerity measures to reduce fuel consumption and protect the country’s foreign currency reserves. He encouraged people to avoid unnecessary travel, use fuel more efficiently, and where possible, revive work-from-home practices similar to those used during the COVID-19 pandemic.
India has previously taken steps to curb gold imports, including raising import duties, tightening import regulations, and promoting alternatives such as gold bonds and paper gold investments.
Although economists acknowledge that a single family postponing gold purchases may not directly impact the rupee, they emphasize that collective reductions in demand during India’s peak wedding season could help ease pressure on the country’s economy.
The Indian government’s appeal reflects growing concern over inflation, currency depreciation, and rising import bills linked to the global energy market turmoil.
