Aman Verma
Prime Minister Narendra Modi’s appeal urging citizens to avoid unnecessary gold pur chases for a year in order to protect India’s foreign exchange reserves has triggered concern within Goa’s jewellery industry, with traders warning that any prolonged slowdown could hit not only busi nesses but also thousands of livelihoods linked to the sector. While jewellers backed the government’s broader economic concerns amid rising global uncertainty and pressure on foreign exchange reserves, many said gold in India cannot be viewed merely as a luxury commodity or investment instrument. The Prime Minister’s re marks come at a time when soaring international gold prices and geopolitical ten sions have already weak ened customer sentiment, leaving traders apprehen sive about the impact the appeal could have on an industry heavily depend ent on seasonal and wed ding-related demand. Speaking to O Heraldo, Sameer Ratnakar Kud tarkar, President of the Goa Jewellers Association, said the industry understands the government’s position but cautioned that gold re mains deeply woven into India’s social and cultural fabric. “Whatever the Prime Minister is saying is from the coun try’s perspective, and we completely understand and re spect that. At the same time, gold in India is not viewed only as an investment or luxury purchase. It is emotionally and culturally linked to weddings, festivals and family tra ditions,” Kudtarkar said. He said investment-driven purchases such as gold bars and bullion could slow temporarily, but jewellery buying linked to weddings and traditional ceremonies was unlike ly to stop altogether. “Investment-related buying may slow down for some time. But jewellery purchases connected to weddings and celebrations will continue because those traditions are deeply rooted in Indian society,” he added. Kudtarkar also warned that any sharp decline in demand would have consequences far beyond showroom sales, pointing to the vast network of artisans, craftsmen and workers dependent on the trade. “There are crores of artisans, karigars, labourers, show room staff and small workshops dependent on this sector. The jewellery business supports a very large ecosystem, and that aspect also needs to be considered,” he said. Jewellers said the timing of the appeal has added to exist ing anxiety within the industry, which is already grappling with volatile prices and cautious consumer spending. Anand Palan of Manek Gem Art International, Panjim, said business activity had already slowed due to high gold prices and uncertainty in global markets. “Business has already slowed because of the current in ternational situation and high prices. So naturally, when such an appeal comes from the Prime Minister, the industry becomes concerned about how it may influence customer sentiment,” Palan said. At the same time, he reiterated that traders were not opposing the government’s concerns regarding foreign ex change reserves and rising import bills. “The concern regarding foreign exchange reserves and dollar outflow is genuine, and we support measures that are in the country’s interest. People buying gold purely for in vestment may choose to pause purchases for some time. But weddings and family functions will continue because jewel lery remains an important part of Indian culture,” he said. Palan further stressed that the sector sustains a large workforce across the country, from small artisans to inde pendent workshops and retail employees. “This sector provides livelihoods to crores of people directly and indirectly. Small artisans, workshops and la bourers depend on regular business activity. Any major slowdown impacts not just jewellers, but the entire chain connected to the trade,” he added. Meanwhile, Vikram Verlekar, Managing Director of Ulhas Jewellers, Margao, suggested that the government should also focus on mobilising idle household gold already avail able within the country instead of relying solely on reduced consumption. “India already has a huge quantity of household gold ly ing unused. Better recycling, reuse and monetisation of ex isting gold can help reduce fresh imports and ease pressure on forex reserves,” Verlekar said. Jewellers also pointed out that gold has historically acted as a financial safety net for Indian families during times of crisis. During the pandemic, many households survived by mortgaging or selling jewellery to manage expenses and economic hardship.
