The recent appeal by Prime Minister Narendra Modi urging citizens to refrain from buying gold and jewellery for about a year has triggered anxiety among residents, particularly jewellers, who say the remark has already begun impacting sentiment in the market.
Members of the jewellery trade industry claim they have received multiple calls from concerned buyers, reflecting uncertainty and apprehension about future purchases.
Anand Sekri, president of the Ludhiana Jewellers Association, said the Prime Minister’s appeal has cast a shadow over the sector.
“I have been in touch with jewellers who report a noticeable dip in customer footfall following the statement. This is certainly not good for business. While gold prices are driven by international markets, such remarks do influence consumer sentiment,” he said.
Residents, especially homemakers with weddings lined up later this year, expressed concern over the timing of the appeal. One such resident, whose daughter is set to marry in November, said the uncertainty has added to her stress.
“Gold is a crucial investment for an Indian bride. Our jeweller advised us to buy as early as possible due to uncertainty, but we do not have enough liquidity at the moment. It’s worrying,” she said, requesting anonymity.
Jewellers noted that despite already low demand since April, some are offering slight discounts to attract buyers.
“If 24-carat gold is priced at around Rs 1.53 lakh per 10 grams, it is currently being sold at approximately Rs 1.51 lakh. While there is no immediate drastic impact, we have received several panic calls. Buyers are concerned about price fluctuations and availability,” said Amit Mehra of Jagan Nath Ram Sahai and Sons, one of the city’s oldest jewellery establishments.
He added that many buyers are now leaning towards purchasing pure gold as an investment rather than jewellery, amid global uncertainty.
However, not all traders see a direct impact yet.
Rajan Jain of Nikka Mal Saraf said the slowdown in footfall could also be seasonal. “There is no need to panic. The reduced number of customers may be due to the ongoing vacation season. We have not observed any significant impact so far,” he said.
Sagar Singla from Jagdish Jewellers ,Chandigarh, said that there is a lot of uncertainty in the market. “There is no immediate impact, though, but anything is possible. The prices of gold may increase if there is a jump in import duty. We cannot reach any conclusions,” he said.
World MSME Forum condemns statement
Meanwhile, the World MSME Forum has condemned the Prime Minister’s statement, expressing concern over its potential repercussions on small and medium enterprises dependent on the jewellery trade.
Badish Jindal, President of the World MSME Forum, stated that such statements from the country’s highest leadership can create unnecessary panic and uncertainty in major employment-generating sectors such as gems & jewellery, tourism, hospitality, aviation, and retail trade. He stated that instead of discouraging domestic spending in these sectors, the government should focus on controlling the massive outflow of foreign exchange caused by unchecked imports of non-essential and cheap Chinese products.
The World MSME Forum stated that India’s gems and jewellery industry is one of the country’s most important economic sectors. The industry contributes nearly 7% of India’s GDP and around 15% of total merchandise exports while providing direct and indirect employment to more than 50 lakh people, including artisans, karigars, traders, transporters, polishers, small manufacturers, and retailers.
Lakhs of MSMEs across states such as Gujarat, Maharashtra, Punjab, Rajasthan, Tamil Nadu, and West Bengal are dependent on this sector for survival.
Badish Jindal stated that the long-term solution to strengthen India’s economy lies in boosting domestic manufacturing, increasing exports, reducing dependency on imported goods, and creating confidence among Indian consumers and investors rather than creating panic among them.
