Congress Criticizes PM Modi's Gold Purchase Advisory as Threat to Jewellery Sector
Congress terms PM’s appeal to defer gold purchases a ‘death warrant’ for jewellery sector
The Hindu
Image: The Hindu
The Congress party has condemned Prime Minister Narendra Modi's suggestion to defer gold purchases for a year, labeling it a 'death warrant' for the jewellery sector. They demand an economic relief package for the 35 million individuals reliant on this industry, highlighting concerns over increased import duties and potential smuggling.
- 01Congress general secretary Randeep Surjewala described the PM's advisory as an attack on livelihoods in the jewellery sector.
- 02The import duty on gold and silver was raised from 6% to 15%, which Congress argues will harm small jewellers.
- 03Over 90% of India's jewellery trade is conducted through Micro, Small and Medium Enterprises (MSMEs), contributing over 7% to the GDP.
- 04The Congress party claims that the PM's remarks contradict his previous statements defending gold purchases as culturally significant.
- 05Industry estimates suggest annual gold smuggling ranges from 10 to 15 metric tonnes, exacerbated by higher import duties.
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On May 15, 2026, the Congress party criticized Prime Minister Narendra Modi's appeal to postpone gold purchases for a year, calling it a 'death warrant' for the jewellery sector. Congress general secretary Randeep Surjewala stated that this advisory threatens the livelihoods of approximately 35 million individuals, including artisans, goldsmiths, and traders. The party demanded a special economic relief package to support those affected by the decision. Surjewala argued that the government's recent increase in import duties on gold and silver from 6% to 15% would disproportionately impact small jewellers and potentially lead to increased smuggling. He emphasized that over 90% of the jewellery trade operates through Micro, Small and Medium Enterprises (MSMEs), which are vital to the economy, contributing more than 7% to India's GDP. The Congress also questioned the government's contradictory stance of increasing sovereign gold holdings while advising against gold purchases, suggesting that these policies could undermine small jewellers in favor of larger corporate interests. Surjewala concluded by highlighting the cultural significance of gold in India, particularly for women, and criticized the government's past economic policies that have already weakened the sector.
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The PM's advisory and increased import duties could significantly harm small jewellers and artisans, impacting their livelihoods and the broader economy.
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