Gold demand could plunge from 800 tonnes to 500 tonnes: Why jewellers are worried after PM Modi’s appeal
Prime Minister Narendra Modi’s repeated appeal to avoid non-essential gold purchases has sparked concern among jewellers, with the Confederation of All India Traders (CTI) warning of a sharp fall in demand. The trade body estimates India’s annual gold consumption could drop from 800 tonnes to 500 tonnes, raising fears of weaker sales ahead of the crucial wedding season.
- Sep 2, 2026,
- Updated Sep 2, 2026 10:37 AM IST
For an Indian family preparing for a wedding, buying gold is often more than a shopping decision. A ring, earrings or a set of bangles can be part of the preparations months in advance. But with Prime Minister Narendra Modi appealing to citizens to avoid non-essential gold purchases, jewellers fear that some of those purchases could now be postponed or cancelled.
The repeated appeal has triggered concern across the jewellery trade, particularly among small retailers, manufacturers, goldsmiths and artisans. The Chamber of Trade and Industry (CTI) estimates that India’s annual gold consumption could fall from around 800 tonnes to 500 tonnes if the slowdown persists.
Why jewellers are worried
India is the world’s second-largest gold consumer after China, with annual consumption estimated at around 700-800 tonnes, according to CTI. A decline to 500 tonnes would represent a substantial contraction in demand.
The timing is also a major concern. The wedding season begins around October-November, and CTI Chairman Brijesh Goyal said people have already started purchasing jewellery for upcoming weddings.
The industry fears that customers may now delay purchases in anticipation of lower gold prices or because they interpret the appeal as a reason to avoid buying gold altogether.
Small jewellers feel the pressure
CTI said the impact is already being felt by smaller players. Since the Prime Minister’s first appeal in May, business for small manufacturers and retailers has reportedly fallen by 60-70%, according to the trade body.
Amritsar, a major hub for gold ornament manufacturing, has also been affected.
“People are not even buying a single ring or earring, expecting that prices may fall. Many retailers have not seen a single customer in the past 7-10 days and have stopped replenishing stocks,” jewellers said.
The slowdown could have consequences beyond shop sales. Goldsmiths and artisans depend on jewellery orders for their livelihoods, and prolonged weakness could make it difficult for small businesses to pay salaries or retain workers.
“Earlier, one would never hear of a gold ornament manufacturer driving an e-rickshaw or selling kulcha-chole. But after the first appeal, such things have happened. I wonder what will happen after his second appeal,” the industry said.
DO READ: India’s hidden stimulus: How a ₹33-lakh-crore gold stockpile could boost consumption
What happens to the jewellery industry next?
A prolonged fall in demand could affect the entire supply chain—from bullion traders and manufacturers to retailers and artisans. Retailers may reduce fresh inventory orders, while manufacturers could face fewer production orders.
The industry also argues that the impact may be uneven. Small jewellers and traditional goldsmiths, who depend heavily on regular customer footfall, could face greater pressure than large organised jewellery companies.
CTI has called the repeated appeal a major setback for the jewellery industry, which may now have to adopt new strategies to sustain business.
For an industry heading into one of its most important buying periods, the immediate concern is clear: if wedding and festive purchases are postponed, the expected seasonal revival in gold demand could be significantly weaker than usual.
ALSO READ: Only 15% of India’s gold is monetised: Why gold loans could become a new consumption engine
For an Indian family preparing for a wedding, buying gold is often more than a shopping decision. A ring, earrings or a set of bangles can be part of the preparations months in advance. But with Prime Minister Narendra Modi appealing to citizens to avoid non-essential gold purchases, jewellers fear that some of those purchases could now be postponed or cancelled.
The repeated appeal has triggered concern across the jewellery trade, particularly among small retailers, manufacturers, goldsmiths and artisans. The Chamber of Trade and Industry (CTI) estimates that India’s annual gold consumption could fall from around 800 tonnes to 500 tonnes if the slowdown persists.
Why jewellers are worried
India is the world’s second-largest gold consumer after China, with annual consumption estimated at around 700-800 tonnes, according to CTI. A decline to 500 tonnes would represent a substantial contraction in demand.
The timing is also a major concern. The wedding season begins around October-November, and CTI Chairman Brijesh Goyal said people have already started purchasing jewellery for upcoming weddings.
The industry fears that customers may now delay purchases in anticipation of lower gold prices or because they interpret the appeal as a reason to avoid buying gold altogether.
Small jewellers feel the pressure
CTI said the impact is already being felt by smaller players. Since the Prime Minister’s first appeal in May, business for small manufacturers and retailers has reportedly fallen by 60-70%, according to the trade body.
Amritsar, a major hub for gold ornament manufacturing, has also been affected.
“People are not even buying a single ring or earring, expecting that prices may fall. Many retailers have not seen a single customer in the past 7-10 days and have stopped replenishing stocks,” jewellers said.
The slowdown could have consequences beyond shop sales. Goldsmiths and artisans depend on jewellery orders for their livelihoods, and prolonged weakness could make it difficult for small businesses to pay salaries or retain workers.
“Earlier, one would never hear of a gold ornament manufacturer driving an e-rickshaw or selling kulcha-chole. But after the first appeal, such things have happened. I wonder what will happen after his second appeal,” the industry said.
DO READ: India’s hidden stimulus: How a ₹33-lakh-crore gold stockpile could boost consumption
What happens to the jewellery industry next?
A prolonged fall in demand could affect the entire supply chain—from bullion traders and manufacturers to retailers and artisans. Retailers may reduce fresh inventory orders, while manufacturers could face fewer production orders.
The industry also argues that the impact may be uneven. Small jewellers and traditional goldsmiths, who depend heavily on regular customer footfall, could face greater pressure than large organised jewellery companies.
CTI has called the repeated appeal a major setback for the jewellery industry, which may now have to adopt new strategies to sustain business.
For an industry heading into one of its most important buying periods, the immediate concern is clear: if wedding and festive purchases are postponed, the expected seasonal revival in gold demand could be significantly weaker than usual.
ALSO READ: Only 15% of India’s gold is monetised: Why gold loans could become a new consumption engine