When Indira Gandhi Appealed Indians To stop Buying Gold - The Gold Story

New Delhi: Nearly six decades before Prime Minister Narendra Modi urged Indians to avoid buying gold for at least a year amid a deepening global economic crisis, former Prime Minister Indira Gandhi had made a remarkably similar appeal to the nation during one of India’s toughest foreign exchange crises.On June 6, 1967, amid severe pressure on India’s foreign exchange reserves, Indira Gandhi publicly appealed to citizens not to buy gold “in any form” and called for “national discipline” to protect the economy.A report published in The Hindu on June 6, 1967 carried the headline: “Don’t buy gold, Indira tells people; appeals for ‘national discipline’.”Also Read - PM Modi's Energy Independence Pitch: Why It’s Personal – ExplainedAt the time, India was

grappling with an acute foreign exchange shortage, rising import burdens and economic instability. Gold imports were viewed as a major drain on the country’s limited dollar reserves.In her statement then, Indira Gandhi said: “We are facing a very critical position in regard to our foreign exchange. Gold imports add heavily to our burden. I, therefore, appeal to all our citizens not to buy gold, whether in the form of ornaments or otherwise. This is a time for national discipline and sacrifice.”Back then, the government had already imposed restrictions under the Gold Control Orders, arguing that public cooperation was essential for the country’s economic well-being.Now, in May 2026, India finds itself facing another global economic shock, this time triggered by the escalating conflict in West Asia and tensions surrounding the Strait of Hormuz, one of the world’s most critical oil shipping routes.Prime Minister Narendra Modi has urged citizens to avoid purchasing gold for at least one year, warning that non-essential imports could put enormous strain on India’s foreign exchange reserves at a time when crude oil prices are surging globally.The Prime Minister’s remarks came as global crude prices jumped sharply from around $70 per barrel to nearly $126 per barrel in recent weeks, significantly increasing India’s import bill.Economically, gold and crude oil pose a similar challenge for India because both are heavily import-dependent and paid for in US dollars. India imports nearly 85% of its crude oil requirements and remains one of the world’s largest gold consumers.When crude oil prices rise sharply while gold imports remain elevated, India requires substantially more dollars to pay for imports. This increases demand for the US dollar, weakens the rupee and puts pressure on the country’s foreign exchange reserves.Along with urging people to defer gold purchases, PM Modi also called for reduced fuel consumption, postponement of non-essential foreign travel, wider adoption of work-from-home practices and greater support for locally manufactured products. The government has framed the appeal as part of a broader push for “economic patriotism” during a period of global instability.However, the appeal has quickly triggered a political confrontation between the BJP-led Centre and the Opposition, particularly the Congress party, with leaders trading accusations over economic management and political hypocrisy.Joining the debate, Karnataka BJP leader and Leader of Opposition R Ashoka took a swipe at Congress over its criticism of PM Modi’s remarks, pointing to similar appeals made by Congress governments in the past.

Congress party’s memory works in mysterious ways!When Smt. Indira Gandhi asked Indians to avoid buying gold in 1967, it was called “national discipline.”When Shri P. Chidambaram repeatedly begged people in 2013 to “resist the temptation to buy gold,” it was called “economic… pic.twitter.com/pdxIt3qUjO

— R. Ashoka (@RAshokaBJP) May 12, 2026

“Congress party’s memory works in mysterious ways!When Smt. Indira Gandhi asked Indians to avoid buying gold in 1967, it was called ‘national discipline.’When Shri P. Chidambaram repeatedly begged people in 2013 to ‘resist the temptation to buy gold,’ it was called ‘economic responsibility.’But when PM @narendramodi makes a similar appeal now, Congress leaders behave as though something unprecedented has happened!Maybe the problem is not the policy.Maybe the problem is that they simply cannot digest the fact that under PM Modiji, India’s economy is being managed with confidence, credibility and national interest at heart.At this point, Congress should maintain a diary of its own past statements before launching into daily social media outrage mode,” Ashoka wrote on X.Meanwhile, Congress leader Rahul Gandhi on Monday launched a scathing attack on the Prime Minister, calling the appeal evidence of "failure"."Yesterday, Modi ji asked the public to make sacrifices—don't buy gold, don't go abroad, use less petrol, cut down on fertiliser and cooking oil, take the metro, work from home. These aren't sermons—they're proof of failure," Rahul Gandhi said in a post on X.The comparison between 1967 and 2026 highlights how gold, beyond being a cultural and emotional asset in India, often becomes a strategic economic issue during periods of oil shocks, currency stress and foreign exchange uncertainty.