What will happen if you do not buy gold for a year, why is PM Modi making such an appeal? Understand its advantages and disadvantages

What happens if don’t buy gold for a year: India is one of the largest gold consumer countries in the world. Be it a wedding, festival or any special occasion, every Indian gives priority to the purchase of gold. Gold is also one of the most prominent options for investment. However, PM Modi has appealed to the countrymen not to buy gold for one year. If people follow PM Modi’s appeal and do not buy gold for a year, then its impact will not be limited to the jewelery market only. Due to this, big changes can be seen in the country’s economy, rupee, trade deficit and even investment patterns.

According to the latest data, the total gold demand in India usually remains between 600 to 800 tonnes. Last year i.e. in 2025 this demand was around 710.9 tonnes. The largest share in this is the purchase of jewellery, while investment in gold bars, coins and ETFs is also increasing rapidly. India’s gold demand in the first quarter of 2026 was 151 tonnes, in which the share of investment was more than jewellery.

India imports gold from abroad

For Indians, gold is not just a metal but is considered a symbol of tradition and security. Every year hundreds of tonnes of gold is purchased in the country. People buy gold in large quantities in the name of festivals, weddings and investments. India imports most of its gold requirement from abroad. This is the reason why whenever gold import increases, a large amount of foreign currency goes out of the country. According to experts, India imports gold worth billions of dollars every year, due to which the trade deficit also increases.

India continues to scale new heights of progress but at the same time there are several challenges we have to overcome.

Here is my appeal to my fellow Indians. pic.twitter.com/vIz1nT2EF6

— Narendra Modi (@narendramodi) May 10, 2026

What if you don’t buy gold for a year?

If the people of India reduce the purchase of gold for a year or stop it completely, then the biggest impact will be seen on the country’s import bill. Reducing the import of gold can help the Indian government a lot in saving foreign exchange. If this happens then the demand for dollar will decrease and the pressure on the rupee will also reduce. Some economists believe that it can help in reducing the country’s current account deficit i.e. trade deficit. In simple words, the country’s money can be used more for investment and development within the country instead of going abroad.

Indian economy will gain momentum

A large part of Indians’ income goes into purchasing gold, which remains idle for a long time. If instead of buying gold, people start investing money in bank FD, SIP, stock market or government schemes, then the economy can benefit more. This will bring more capital to banks and it may become easier to give loans to industries. Increasing investment in stock market and mutual funds will help companies expand. This can also create new employment opportunities.

(What will happen if you do not buy gold for a year?)

Impact on jewelery industry and market

However, the impact of a complete stoppage of gold purchases will not be just positive. Lakhs of people are associated with the jewelery industry of the country, which provides them employment. If suddenly such a situation arises that people stop shopping, then jewelery shopkeepers, artisans and small businessmen may have to face losses. Business may slow down during wedding and festival seasons. Therefore, experts believe that instead of stopping buying gold completely, people should develop the habit of balanced investment.

Also read: Do not buy gold for a year… 10 important things about PM Modi’s appeal on the economic crisis across the world

Opportunity to explore other investment options

If ever such a situation arises in the future, it can change the way investment is made in the country. Even today, most people consider gold as the safest and most profitable investment. However, the new generation SIP, equity and digital investment Is rapidly moving towards alternatives. In such a situation, reducing dependence on gold can increase productive investment in the country. However, it will not be easy for people to stay away from gold completely, because gold is not just an investment but also associated with emotions and tradition.