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PM MODI’S SELF-RELIANCE PUSH Background • Prime Minister Narendra Modi appealed to citizens to support the country during the global crisis caused by tensions in West Asia. • The Prime Minister made this appeal while addressing a public meeting in Hyderabad on May 10, 2026. • He emphasised the need to conserve Foreign Exchange Reserves (Forex Reserves) and reduce dependence on imports. • The appeal came at a time when rising crude oil prices and high gold imports were increasing pressure on India’s economy. • India’s gold imports reached nearly $72 billion in FY 2025–26, contributing to a widening trade deficit. • India’s foreign exchange reserves were reported to be above $690 billion, but concerns remain regarding pressure from oil and gold imports. • The Prime Minister linked the appeal with the vision of Atma Nirbhar Bharat or Self-Reliant India. Revival of Work From Home and Virtual Meetings • The Prime Minister asked citizens and organizations to revive Work From Home (WFH) arrangements and virtual meetings. • He stated that India had successfully adapted to digital working methods during the COVID-19 pandemic. • He encouraged the use of video conferencing and remote work to reduce travel expenses and fuel consumption. • He described these practices as the “need of the hour” during the present global crisis. Appeal to Reduce Gold Purchases • The Prime Minister urged people to avoid purchasing gold during festivals and weddings for at least one year. • He stated that reducing gold imports would help conserve foreign exchange reserves. • India is one of the world’s largest importers of gold, and heavy imports increase pressure on the trade deficit. • The Prime Minister presented the appeal as a voluntary and patriotic contribution toward economic stability. • The article noted that jewellery stocks declined after the Prime Minister’s appeal, as investors anticipated moderation in gold demand. Promotion of “Vocal for Local” • The Prime Minister encouraged citizens to identify imported goods used in daily life and gradually shift toward Indian-made products. • He clarified that people should not immediately discard foreign products. • He stated that the long-term goal should be to strengthen domestic manufacturing and self-reliance. • He connected this appeal with the “Vocal for Local” campaign that had earlier been promoted during the COVID-19 pandemic. INDIA’S GOLD CONTROL ACT,1968 • In 1968, Finance Minister Morarji Desai introduced the Gold Control Act. • The law was introduced after economic difficulties caused by the 1962 India-China War and the 1965 India-Pakistan War. • The Act banned private ownership of gold bars and coins. • Citizens were required to convert gold into jewellery and declare their holdings. • The government expected citizens to cooperate in the national interest. • However, demand for gold remained very high despite the restrictions. • The policy led to increased gold smuggling, expansion of hawala networks, and growth of the black economy. • Illegal trade and tax evasion increased significantly during this period. • The Gold Control Act was eventually repealed in 1990. DIFFERENCE BETWEEN 1968 POLICY & 2026 APPEAL • The Gold Control Act of 1968 imposed compulsory legal restrictions, whereas the 2026 appeal is voluntary. • The current government has not imposed any legal ban on gold ownership or purchases. • Modern India has financial alternatives such as Gold ETFs, Sovereign Gold Bonds (SGBs), and digital gold investments. • The present approach focuses on patriotism, awareness, and self-discipline rather than coercion. MODERN ALTERNATIVES TO PHYSICAL GOLD Sovereign Gold Bonds (SGBs) [Discontinued since 2025] • Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. • The SGB Scheme was launched by the Government of India on 30 October 2015. • SGBs were issued by the Reserve Bank of India (RBI) on behalf of the Government of India (GOI). • SGBs acted as a substitute for holding physical gold, allowing investors to invest in gold without storing it physically. Gold ETFs • Gold Exchange Traded Funds (ETFs) allow investors to invest in gold digitally. • Gold ETFs reduce storage risks associated with physical gold. Digital Gold • Digital gold allows people to purchase and store gold online in small quantities. • Digital platforms provide easy access to gold investment without physical handling. #pmmodi #atmanirbharbharat #selfreliantindia #vocalforlocal #forexreserves #indianeconomy #currentaffairs #upsccurrentaffairs #economiccrisis #goldimports #tradedeficit #fuelconservation #workfromhome #digitalindia #naturalfarming #electricvehicles #publictransport #upscpreparation #iaspreparation #economycurrentaffairs #indianews #policyanalysis #sovereigngoldbond #goldetf #economicreforms #upsc2026 #civilservices #studycurrentaffairs #indianpolity #nationalinterest #vajiraoandreddyinstitute