Congress calls PM Modi's appeal to defer gold purchases a 'death warrant' for jewellery sector

Surjewala alleged that higher import duties would incentivise gold smuggling, noting that enforcement agencies seized over 2.6 metric tonnes of gold during 2024-25, while industry estimates placed annual smuggling at 10 to 15 metric tonnes.

Surjewala argued that repeated policy shocks such as demonetisation, excise duty measures, GST implementation and mandatory hallmarking have weakened the sector, raising concerns about handing over the jewellery trade to a few large corporate groups.

The Congress cited that over 90% of jewellery trade operates through MSMEs, the sector contributes over 7% to GDP and about 12% of exports, with more than 85% of exporters in the MSME category.

Congress demanded a special economic relief package for about 3.5 crore people dependent on the jewellery industry and urged measures to promote domestic gold mobilisation, recycling and utilisation of idle household gold stocks.

The government increased import duty on gold and silver from 6% to 15%, a move cited by Congress as harming small jewellers and potentially boosting smuggling.

Prime Minister Narendra Modi urged citizens to defer gold purchases for a year, a position the Congress described as a 'death warrant' for the jewellery sector.

The Congress highlighted that sovereign gold holdings rose to 880.52 metric tonnes by March 2026, up from 794.64 tonnes in September 2025.

The Congress noted that sovereign gold holdings were 794.64 metric tonnes in September 2025 as part of the broader discussion on gold policy and reserves.

Congress general secretary Randeep Surjewala recalled Narendra Modi's April 2024 election speech in Banswara, Rajasthan, where he had accused the Opposition of wanting to 'snatch mangalsutras' from women, to argue the Prime Minister is now advising people not to buy gold.