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Prime Minister Narendra Modi’s recent appeal asking citizens to avoid buying gold and postpone unnecessary foreign travel for a year has triggered sharp reactions from the jewellery and travel industries, with traders warning that the move could severely affect businesses and employment across related sectors. The Prime Minister made the remarks during a public event in Hyderabad, where he urged people to reduce non-essential imports and conserve foreign exchange reserves amid rising global economic pressures caused by geopolitical tensions and high crude oil prices. In his address, Modi advised citizens to avoid purchasing gold jewellery, reduce fuel consumption, use public transport, prefer work-from-home where possible, and limit overseas travel. The government’s concern stems from India’s growing import bill, particularly for crude oil and gold. Reports indicate India imported nearly $72 billion worth of gold in FY26, making it one of the country’s largest import expenses after oil. The statement immediately sparked concern among jewellery associations and traders, who warned that the sector was already struggling because of record-high gold prices and slowing consumer demand. Jewellers in several cities said a prolonged decline in gold purchases could threaten lakhs of jobs connected to jewellery manufacturing, retail sales, polishing, transport, and small workshops. Some traders argued that many families depend entirely on the jewellery business and that a sudden appeal to stop buying gold could worsen the ongoing slowdown. Industry representatives also pointed out that gold buying in India is deeply linked to weddings, festivals, and cultural traditions, making a complete pause unrealistic. Several jewellers said customers had already shifted toward exchanging old jewellery for new ornaments because of rising prices, and fresh purchases were already weak before the Prime Minister’s remarks. The travel industry also reacted cautiously to the appeal to avoid foreign travel. Tour operators warned that reduced overseas tourism could hurt airlines, travel agencies, hotel bookings, visa services, and related businesses that depend heavily on international travel demand. Industry voices argued that global instability has become common and that a long pause in foreign travel could create uncertainty for the sector. The financial markets also reacted strongly. Shares of major jewellery companies, including Titan Company and Kalyan Jewellers, reportedly fell sharply after the speech amid fears of weaker gold demand and possible future import restrictions. Subscribe to FactTechz

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