Why Indian Governments Restrict Gold Imports During Economic Crises
From the Gold Control Act to Modi’s 2026 appeal, here’s why Indian governments repeatedly target gold imports during economic crises. Why Every Indian Government Targets Gold During Economic Crises Indians love gold. We buy it during weddings. We gift it during festivals. We treat it as security during uncertain times. But every time India faces an economic crisis, governments suddenly ask citizens to stop buying gold. Sound familiar? Prime Minister Narendra Modi’s recent appeal asking citizens to postpone gold purchases for a year may look like a new move. It isn’t. India has seen this pattern for decades. From the Gold Control Act of 1968 to the UPA government's 80:20 gold rule in 2013, almost every government has tried restricting gold imports when the economy comes under pressure. The reason is simple: India loves gold, but India cannot afford unlimited gold imports during crises. Why Gold Makes Governments Nervous India produces very little gold domestically. Yet Ind...