As Iran–Israel tensions push oil to $103 a barrel, gold’s safe‑haven appeal grows, testing Modi’s call in tradition‑rich Telangana.
Hyderabad: Prime Minister Narendra Modi’s appeal to boycott gold purchases for a year—pitched as a patriotic austerity measure to protect India’s $650 billion forex reserves from West Asia’s wars and oil shocks — has triggered unease across South India, particularly among Telugu communities.
With women as prime targets, traders and artisans in Hyderabad and Secunderabad brace for a lean year, as record prices have already halved sales. World Gold Council data shows imports at 777 tonnes worth over ₹70,000 crore in FY25, fuelling a current account deficit of 2.1 per cent of GDP. While investment in bars and digital gold ETFs surged 35 per cent last year, ornament demand collapsed as prices touched ₹1,52,000 per 10 grams—a 41 per cent jump.
Shops in Begum Bazaar, Secunderabad’s Pan Market and Mahankali Temple Street report revenue drops of 40–50 per cent. “This is a death knell, utterly painful,” said trader M. Ravi Chary, blaming government import policies for the rupee’s slide from ₹60/$ in 2014 to ₹95 today. He urged the RBI to auction its 820‑tonne gold stock to ease imports.
Artisans are hit hardest. Gitam, a veteran Bengali goldsmith with 25 workers on Mahankali Street, said: “Worst year on record—orders down 60 per cent. Telugu women, our loyal necklace buyers, now prefer biscuits over ornaments.” Telangana’s gold sector employs 3 lakh people, with Hyderabad alone hosting over 5,000 units.
Gitam pointed to crude oil imports worth ₹12 lakh crore, luxury foreign jaunts, destination weddings, imported yachts, supercars, gadgets and overseas education spending as bigger drains on reserves. “Curb these, boost local manufacturing via PLI schemes, and reserves will soar—no need to gut gold jobs,” he argued.
As Iran–Israel tensions push oil to $103 a barrel, gold’s safe‑haven appeal grows, testing Modi’s call in tradition‑rich Telangana.
