India Inc backs Modi’s appeal to cut gold buying and foreign travel amid West Asia tensions

New Delhi|Kolkata: Indian companies responded to Prime Minister Narendra Modi's appeal to curb spending on gold and overseas travel in order to safeguard foreign exchange reserves and check fuel use by starting reviews of work-from-home practices while industry leaders underscored the need to turn investment attention homeward.

Jewellery stocks took a beating though, prompting a government official to insist that the Centre had no plans to increase import duties on gold and silver imports.

Also read: No plan to hike gold import duty despite Modi's appeal to skip buying, says government official

The PM's "message was very profound. I think we in the industry need to play our role," Bharti Enterprises chairman Sunil Bharti Mittal told the Confederation of Indian Industry (CII) annual business summit in New Delhi. "We need to get away from this obsession of importing gold. We need to lower our energy costs. We need to move faster toward renewable energy."

CAD a Factor

“… And importantly, we need to vote with our feet within our country. Spend more here, put more capex here. We need to invest more. This is not the moment to shy away,” said Mittal.

On Sunday, Prime Minister Narendra Modi had appealed to Indians to avoid purchasing gold for a year amid the economic pressures stemming from the Iran conflict. India is the world's second-largest consumer of gold and the largest consumer of silver, relying heavily on imports to meet domestic demand.

India’s gold imports rose 24.1% year-on-year to $72 billion in FY26, while silver imports surged 149.6% to $12.1 billion. Together, the two metals accounted for 10.8% of the country’s total imports in the last fiscal year.

The gold trade fears a duty revision and said it could bring more household jewellery into the market as consumers may get higher prices for their holdings, while also limiting investment demand for the yellow metal, which in turn could help rein in the current account deficit.

“Smuggling, however, will rise if the import duty is hiked. The import duty may go up steeply to 15% (from 6%),” said Surendra Mehta, secretary of the India Bullion & Jewellers Association (IBJA).

In such an event, Joy Alukkas, chairman of the eponymous group, said, “The immediate impact will be on business, which could decline by 15%.”

Titan Co fell 6.7%, Kalyan Jewellers dropped 9.3% and Senco Gold slumped 8.52.

Also read: India well-stocked on essentials; PM Modi urges conservation to cut fiscal strain

Keeping tabs

EY India chairman Rajiv Memani said at the CII meeting that the PM’s call was “a sensible and pragmatic ask to the country to ensure we are mindful of the current geopolitical challenges.”

Executives at conglomerates, consultancies and financial services firms told ET they are monitoring the situation closely and may introduce more remote working options for employees along with reduced domestic and international travel if needed.

“The announcement is being evaluated, and will be addressed suitably- keeping people, business and client commitments in mind," said a spokesperson for KPMG in India. The firm follows a hybrid work policy.

Deloitte, EY, RPG, Tata Motors and others also have models that combine working from home and the office and will continue with them, spokespersons told ET.

“We are fully aligned with the Prime Minister’s guidance,” said Chinmay Sharma, chief HR officer, Diageo India.

A Coca-Cola India spokesperson said, “We continue to follow a hybrid working model.”

The travel and tourism industry expressed its support for the PM’s message.

“We wholeheartedly endorse the sentiment behind the Prime Minister’s appeal urging Indians to reduce leisure travel abroad and avoid holding weddings overseas,” said Rajiv Mehra, general secretary, Federation of Associations in Indian Tourism and Hospitality.