00:00get is
00:32Prime Minister Narendra Modi urged citizens to stop buying gold for at least a year.
00:37They're calling it an economic patriotism.
00:40But how come gold becomes suddenly unhealthy?
00:42And when the entire world is rushing to buy gold during this war, why India is abandoning it?
00:49Welcome viewers, I'm Abhay and you're watching one India's special news program, India Global.
00:54Indian families are being told to stop buying gold.
00:57And now the biggest question is, why is the government suddenly worried about gold purchase?
01:02Because India imposes almost everything that becomes expensive during a global war.
01:07India imposes 85-90% of its crude oil, massive amounts of gold, edible oils, fertilizers, electronics.
01:15And almost all of that is paid for in US dollars.
01:19So when conflict explodes in the Middle East or any part of the world, especially around the Strait of Hormuz,
01:25oil prices rise globally.
01:28That immediately creates three problems for India.
01:31India needs more dollars to buy oil.
01:33Forex reserves start getting drained.
01:36The rupee weakens even further.
01:38And once the rupee weakens, every import becomes even more expensive.
01:42That's exactly what India is facing right now.
01:44Not because gold suddenly became unhealthy.
01:47Not because weddings stopped happening.
01:49Not because Indian culture changed.
01:51But because the Indian economy is under pressure.
01:55Serious pressure.
01:56So now the government is trying to slow every major dollar outflow it can.
02:00And that includes your grandmother's gold jewelry.
02:03Our colleague from Newsroom will explain you how gold and forex are codependent.
02:08And on each other, they will directly impact Indian economy.
02:15Yes, I completely agree.
02:18The role of gold in Indian economy is massive.
02:21India bought 72 billion worth of gold in fiscal year 2025-2026, which is second only to China.
02:30But while China was buying gold as a geopolitical weapon, India was buying gold as a cultural and financial security.
02:39But every dollar we spend on gold is a dollar outflow with no productive return.
02:45It is draining our USD reserves.
02:48It is weakening our rupee.
02:49It is inflating current account deficits.
02:52And it is forcing RBI to intervene.
02:56Now, let's look at the interesting part.
02:59RBI's gold share in forex reserves went from 5% to 6% in 2021 to 16% to 17
03:07% in 2026, which is 880 tons of gold holdings reached by late 2025 and early 2026, which is roughly
03:18doubled in over four years.
03:20RBI is buying gold for its reserves.
03:24It builds, buffers and diversifies it away from USD assets.
03:29Now came the appeal from PM Modi.
03:32He appealed to reduce gold imports, curb demand and stop smuggling.
03:37Less gold imports means stronger rupee, lower deficit and stronger economy.
03:42After his appeal, the new development is, the gold import duty hiked from 6% to 15%.
03:50That was the picture of how Indian economy and gold are intertwined.
03:56Thank you for telling us how gold is directly impacting Indian economy and what government is doing to prevent it.
04:04Now, let's move on to the next topic.
04:07This is the part where critics are focusing on.
04:09The government presents this as a temporary wartime sacrifice, but opponents argue this crisis exposes a deeper long-term policy
04:18failure.
04:19For years, India talked about energy dependence, renewable transition, domestic manufacturing, AV expansion and reducing import dependence.
04:28Yet, in again 2026, India is still depending on the oil import.
04:33It remains deeply exposed to Middle East instability and still suffers massive forest shocks whenever crude prices are spiked.
04:50In fact, critics argue India's oil vulnerability has actually increased.
04:56And what are the reasons behind this?
04:57Because energy demand has exploded, domestic production remains limited, public transport expansion is uneven and industrial growth still relies heavily
05:06on imported energy.
05:07So now, instead of solving the structural dependency fast enough, the government is turning toward demand suppression.
05:15Consume less, travel less, buy less gold, spend fewer dollars.
05:20And experts say this feels less like long-term planning and more like emergency damage control.
05:27Let's understand why this feels familiar to many Indians.
05:30Now, part of the public anxiety comes from memory.
05:34Many Indians remember the COVID lockdown chaos, migrant worker crisis, LPG shortages and price hikes that led to sudden economic
05:43announcement and appeals for sacrifice during instability.
05:47So even if the economic logic behind conserving forex is real, people worry about the pattern.
05:53The government acts aggressively only after pressure becomes visible.
05:57That's why critics accuse the administration of reacting late instead of preparing early.
06:03Supporters meanwhile argue that no government can fully shield an oil-importing nation from a global washout.
06:09And temporary austerity is preferable to a deeper currency crisis.
06:14Now, both arguments contain truth.
06:17But the real story is vulnerability.
06:19Gold is just the symptom.
06:21The deeper issue is that India's growth model still depends heavily on imported oil, dollar stability and external geopolitical calm.
06:30And when those things break simultaneously, the government eventually reaches the last option available, asking citizens to change behavior.
06:39And that's why this moment matters.
06:40Because when the government asks people to stop buying the one asset they trust most, it usually means the economic
06:48pressure underneath is very, very real.
06:51Thanks viewers for tuning in and watching our today's episode.
06:55Keep watching our channel for more international news.
07:04Download the One India app now.
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