New Delhi | Economic Desk | May 11, 2026
Industry leaders say India’s jewellery ecosystem is deeply labour-intensive, and even a marginal fall in consumer demand could lead to job losses and reduced production across major hubs like Surat, Mumbai, Hyderabad, and Jaipur.
Economists also point out that gold demand in India is closely tied to cultural and investment behaviour. Any policy signal or public appeal from the top leadership can significantly influence consumer sentiment, especially during wedding and festive seasons.
Opposition voices have already begun questioning the timing and intent of such remarks, while supporters argue it may be aimed at encouraging investment diversification and reducing import dependency.Prime Minister Narendra Modi has triggered a major political and economic debate after his reported remarks urging citizens to rethink gold purchases. The statement, which is being widely discussed across financial and business circles, has raised concerns about its possible impact on India’s massive gold and jewellery sector.
According to industry reactions, the appeal has already created uncertainty in bullion markets. Gold prices saw volatile movement, while stock market-linked jewellery companies reportedly faced selling pressure amid investor caution.
The Gems and Jewellery Council has warned that any sustained dip in gold demand could directly affect nearly 1 crore workers dependent on the sector, including artisans, designers, traders, and small-scale jewellery manufacturers across the country.
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