Gold Industry Seeks Dialogue With PM Modi After His Appeal To Avoid Gold Buying
Representational image. (IANS)
By Saurabh Shukla
New Delhi: Prime Minister Narendra Modi’s appeal asking people to avoid buying gold could have a major impact on millions of people working in the gold and jewellery industry in the coming days. Early market trends show mixed reactions across the country. In some regions, especially where weddings are approaching, people have started ‘revenge buying’ out of fear that restrictions may increase later.
At the same time, many consumers have decided to postpone or avoid jewellery purchases, and the impact on sales is already becoming visible in several markets.
In an exclusive conversation with ETV Bharat, Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council, said that the industry respects the Prime Minister’s concerns and understands that the appeal has been made in the national interest. However, he believes the jewellery sector, which supports millions of jobs and contributes significantly to the economy, should not be hurt unintentionally.
Rokde said he has requested time to meet the Prime Minister so that the appeal can be implemented more practically and positively without damaging the industry. He also shared that the industry has prepared several suggestions and alternatives, which they plan to discuss directly with the Prime Minister if the meeting takes place.
Industry wants alternatives
Gold in India is not only a cultural asset but also a major source of employment and economic activity. Industry representatives believe that instead of discouraging the sector entirely, the government should explore balanced alternatives. Suggestions include making better use of the large amount of gold lying idle in temples, encouraging gold recycling and creating policies that reduce dependence on imports without hurting the jewellery industry and the livelihoods connected to it. They also argue that if such measures are implemented carefully, the industry can continue contributing positively to the economy while also supporting the government’s broader economic objectives.
Millions of jobs at risk
According to Rokde, the jewellery sector supports millions of livelihoods directly and indirectly. Around 60 lakh artisans and karigars depend on this trade, while nearly 40 lakh women are employed as sales staff in jewellery businesses.
In addition, the sector supports several allied industries, including packaging, logistics, banking, finance, insurance, architecture and uniform manufacturing. Overall, any major disruption in the jewellery industry could impact nearly five crore people associated with it in some capacity, raising concerns about large-scale unemployment, he added.
He also clarified that industry representatives are not opposing the Prime Minister’s appeal made in the national interest. He also agreed that reducing unnecessary imports and protecting foreign exchange reserves is important for the country. However, he believed that policies should not unintentionally damage an industry that contributes nearly 7% to India’s GDP. As India moves toward becoming the world’s third-largest economy, they argue that all major industries, including jewellery, must grow together.
Rokde further emphasised that jewellers primarily sell jewellery, not bullion for investment purposes. Gold, he said, holds a deep cultural and traditional significance in India, especially in weddings and family ceremonies. The concern is not merely about investment demand but about preserving traditions linked to gold ownership and jewellery, he added.
Sales start slipping in some areas
On the market reaction following the Prime Minister’s appeal, Rajesh Rokde said the response has been mixed. In parts of South and East India, especially among wedding buyers, there has reportedly been increased buying due to fears that restrictions could tighten in the future. However, regions such as Mumbai, Nagpur, Maharashtra and Gujarat have witnessed around a 10 per cent decline in sales. Overall, the market response remains uncertain and varied across regions.
Jewellers want dialogue
All India Gem and Jewellery Domestic Council has sought an appointment with the Prime Minister to discuss possible alternatives and solutions. While Rokde declined to share details of their communication, he confirmed that an official email has already been sent requesting a meeting. He stressed that the objective is not confrontation but constructive dialogue to protect both national interests and the livelihoods connected to this centuries-old industry.
