Jewellery associations will meet officials of the Prime Minister's Office (PMO) on Tuesday, May 12, sources told CNBC-TV18. It comes after the Prime Minister on Sunday appealed to citizens to avoid buying gold for one year to tackle the Southeast Asia crisis.
PM Modi, while addressing a rally in Hyderabad, asked people to reduce unnecessary consumption of fuel, postpone discretionary spending such as gold purchases and foreign travel for a year, adopt energy-saving measures and promote domestic products.
Also Read | Jewellery Stocks Fall Up to 10% After PM Narendra Modi Appeals to Citizens To Avoid Buying Gold.
Appeals from the Prime Minister come at a time when India and the rest of the world are facing pressure due to the conflict between the US and Iran, which led to an increase in global commodity prices, including crude oil prices, which have jumped 5% again on Monday. India’s forex reserves dropped by $7.794 billion to $690.693 billion during the week ended May 1.
India remains heavily dependent on imports for gold, crude oil, edible oils and fertilisers, making the economy vulnerable to global commodity shocks and currency pressures during periods of geopolitical instability.