New Delhi: Buoyed by better-than-expected GDP growth, PM Modi on Tuesday praised the resilience of the Indian economy amidst the global crisis. He once again urged citizens to promote indigenous products and avoid holding weddings abroad, vacationing overseas, and purchasing non-essential gold. This appeal comes at a time when import levels remain high due to elevated commodity prices caused by the conflict in West Asia.
His appeal against buying gold has also put to rest speculation regarding a potential review of import duties by the government. In fact, the central government and the RBI are closely monitoring shipments. Since January, there has been an increase in both the volume and value of gold imports.
Although import volumes have declined since PM Modi’s initial appeal in May, the value of imports continues to rise, albeit at a slower pace, due to higher prices. In June, the unit value of gold stood at $3.5 per kilogram (a 94% increase), though prices subsequently moderated to $2.8 per kilogram, still 47% higher than the previous year.
While the volume of gold imports has dropped since PM Modi’s first appeal in May, the import value continues to rise due to price hikes, even if the pace has slowed. Prices moderated to $2.8 per kilogram, which was 47% higher than the previous year.
Industry officials state that although gold remains an investment option for families, high prices have deterred customers from making large purchases, and the recycling of old jewellery is on the rise. Modi also launched a scathing attack on opposition leader Rahul Gandhi for spreading pessimism regarding growth, dismissing his criticism as an “echo of lies.”
This was PM Modi’s second response regarding the growth rate within a span of 24 hours.
This was PM Modi’s second response regarding the growth rate within a span of 24 hours. His message combined praise for the people’s hard work with displeasure towards critics like Rahul. He reiterated his appeal to citizens to avoid purchasing non-essential gold and to refrain from foreign travel. In a selfie-video posted on Instagram, he said, “We must maintain this momentum and keep moving forward; for this, an ‘Atmanirbhar Bharat’ (self-reliant India) is essential.”
The 7.8% growth in GDP during the April-June quarter brought relief to the NDA government. The opposition, particularly the Congress party led by Rahul Gandhi, had been relentlessly attacking the government over allegations of poor performance. PM Modi remarked, “There are some people in India who are steeped in despair and the ‘echoes of lies,’ and are intent on spreading pessimism everywhere.”
Highlighting India’s success, PM Modi noted that this achievement has come at a time of global conflict and crisis, which have disrupted supply chains. He observed that while the world has lacked stability since the 2020 COVID outbreak, India is forging ahead rapidly.
Finance Minister Nirmala Sitharaman stated that while the opposition has the right to criticize the government, the Congress should not insult the public with such a negative attitude or label India’s economy a “dead economy” when the data tells a completely different story.
The BJP contrasted Rahul’s negative remarks about the economy with India’s actual growth rate. Beyond the “dead economy” comment, Rahul had claimed that the economy would face a crisis unlike anything people had ever witnessed in their lifetimes, predicting an impending “economic tsunami.”
Modi asserted that his government’s policies are sound and its intentions clear, and he called upon the people to work hard. India’s collective strength will propel it to new heights; by embracing “Swadeshi” (indigenous products) and self-reliance, the people will bequeath a developed India to the younger generation.
