India Inc backs Modi’s appeal to cut gold buying and foreign travel amid West Asia tensions
However, jewelery stocks took a hit, prompting a government official to insist that the Center has no plans to increase import duties on gold and silver imports.
Also read: No plans to increase gold import duty despite Modi’s call to skip purchases, government official says
“The Prime Minister’s message was very profound. I think we need to play our role in the industry,” Sunil Bharti Mittal, chairman of Bharti Enterprises, said while addressing the annual business summit of the Confederation of Indian Industry (CII) in New Delhi. “We need to get rid of this gold import obsession. We need to reduce our energy costs. We need to turn to renewable energy faster.”
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“… And more importantly, we must vote with our feet within our country. Spend more here, invest more capital here. We need to invest more. Now is not the time to shy away,” Mittal said.
Prime Minister Narendra Modi on Sunday had appealed to Indians to refrain from buying gold for a year due to economic pressures arising from the Iran conflict. India is the world’s second largest consumer of gold and the largest consumer of silver and is heavily dependent on imports to meet domestic demand.
In FY26, India’s gold imports increased by 24.1% annually to 72 billion dollars, while silver imports increased by 149.6% to 12.1 billion dollars. The two metals together accounted for 10.8% of the country’s total imports last fiscal year. Gold trading fears the tax overhaul could bring more household items to the market as consumers could get higher prices for their holdings, while also limiting investment demand for the yellow metal, which could help rein in the current account deficit.
“But if import duty is increased, smuggling will increase. Import duty may quickly increase from 6% to 15%,” said Surendra Mehta, secretary of the Indian Bullion and Jewelers Association (IBJA).
In such an event, Joy Alukkas, president of the eponymous group, said: “The immediate impact will be on business, which could fall by 15%.”
Titan Co lost 6.7%, Kalyan Jewelers lost 9.3% and Senco Gold lost 8.52%.
Also read: India is rich in basic needs; PM Modi calls for protection to ease financial pressure
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EY India chairman Rajiv Memani told the CII meeting that the Prime Minister’s call was a “logical and pragmatic request to ensure that the country remains mindful of the current geopolitical challenges”.
Executives of conglomerates, consultancies and financial services companies told ET that they are monitoring the situation closely and may offer more remote working options for employees, along with reducing domestic and international travel, if needed.
A spokesperson for KPMG in India said: “The announcement is being evaluated and will be handled appropriately, keeping in mind individuals, business and client commitments.” The company follows a hybrid working policy.
Deloitte, EY, RPG, Tata Motors and others also have models that combine working from home and office and will continue with these models, spokespersons told ET.
“We are fully complying with the Prime Minister’s guidance,” said Chinmay Sharma, HR head of Diageo India.
“We continue to pursue a hybrid operating model,” a Coca-Cola India spokesperson said.
The travel and tourism industry expressed its support for the Prime Minister’s message.
“We wholeheartedly support the sentiment behind the Prime Minister’s call urging Indians to reduce holiday travel abroad and avoid weddings abroad,” said Rajiv Mehra, general secretary of the Federation of Indian Tourism and Hospitality Associations.
