A new survey by LocalCircles suggests many Indians are willing to reduce non-essential gold purchases following Prime Minister Narendra Modi’s appeal
May 17, 2026: A growing number of Indians appear ready to cut back on non-essential gold purchases after Prime Minister Narendra Modi urged citizens to help protect the country’s foreign exchange reserves, according to a survey conducted by LocalCircles. The report found that 61% of regular gold buyers are willing to avoid unnecessary purchases over the next year amid concerns over rising imports and global economic uncertainty.
India’s gold import bill reportedly rose sharply during the 2026 financial year, reaching nearly USD 71.98 billion compared to USD 58 billion in 2025. While the actual quantity of imported gold dipped slightly, soaring international prices pushed the overall import cost to record levels. Combined imports of gold and silver are estimated to have touched around USD 102.5 billion, increasing pressure on India’s foreign currency reserves.
The survey, based on responses from around 84,000 participants, indicated changing consumer sentiment. About 28% said they would significantly reduce gold purchases, while 36% said they did not plan to buy gold at all in the coming year. However, nearly 19% of respondents stated they would continue purchasing gold for weddings, festivals and investment purposes, citing its traditional and financial importance during uncertain economic conditions.