Modi’s ‘don’t buy gold’ appeal echoes Indira Gandhi’s 1967 call

Echoes of Indira Gandhi’s 1967 appeal

Modi’s remarks reminded many of former Prime Minister Indira Gandhi’s similar appeal made nearly six decades ago.

In 1967, Indira Gandhi had urged citizens not to purchase gold “in any form” and to embrace “national discipline” as India grappled with severe pressure on foreign exchange reserves.

A report published in The Hindu on June 6, 1967 carried the headline: “Don’t buy gold, Indira tells people; appeals for ‘national discipline’.”

The report stated: “The appeal is part of the Government’s continuing effort to save precious foreign exchange which is still under severe strain.”

At the time, India was facing an acute foreign exchange shortage along with rising import burdens and economic instability.

Chidambaram’s 2013 warning

A similar appeal resurfaced in 2013 during the Congress-led UPA government when then Finance Minister P Chidambaram urged citizens to avoid purchasing gold to reduce pressure on the current account deficit.

In a now-viral video circulating on X, Chidambaram was heard saying: “Please resist the temptation to buy gold. And we can have it for six months-one year. Almost minimal gold imports to the country can dramatically change the situation of the current account deficit.”

Modi calls for austerity amid West Asia tensions

Addressing a rally in Hyderabad last Sunday, Modi urged citizens to adopt austerity measures in view of the worsening conflict in West Asia, warning that the global crisis could severely impact India’s economy through rising fuel prices and pressure on foreign exchange reserves.

The Prime Minister appealed to people to avoid unnecessary foreign travel for a year and refrain from purchasing gold during festivals and weddings.

‘Economic patriotism’ call

Stressing the need for “economic patriotism”, Modi said every Indian must contribute towards protecting the country’s financial stability during uncertain global conditions.

He also urged citizens to reduce petrol and diesel consumption, revive work-from-home practices wherever possible, and rely more on public transport.

Modi cautioned that disruptions in global crude oil supply chains due to the ongoing conflict could sharply increase India’s import bill, given the country’s heavy dependence on imported fuel and gold.