New Delhi: Prime Minister Narendra Modi has renewed his appeal for Indians to support domestic products and services, urging people to avoid unnecessary gold purchases, foreign tourism and destination weddings abroad.
Modi made the appeal in a video message on Tuesday, a day after official data showed that India's real gross domestic product grew 7.8 per cent in the April to June quarter, the first quarter of the 2026 to 2027 financial year.
Congratulating Indians on the economic performance, Modi said the growth reflected the collective efforts and determination of the people. He said India had continued to progress despite conflicts, wars, global instability and disruptions to supply chains.
Modi called on citizens to strengthen Swadeshi and self reliance. He urged people to give greater preference to local products and services and support India's domestic economy.
He also urged Indians not to travel abroad for tourism when it was not necessary. He asked people to avoid organising destination weddings in other countries and encouraged them to follow the "Wed in India" approach.
On gold, Modi advised people not to buy it unless it was necessary. His remarks were an appeal to consumers and did not announce a new government ban or legal restriction on gold purchases.
Modi also accused some people of spreading negativity and falsehoods despite India's economic growth. His comments came as the government highlighted the latest GDP figures as evidence of continued economic strength.
India's economy grew 7.8 per cent in the April to June quarter from a year earlier, according to government data released on August 31. The figure was above the 7.1 per cent growth forecast in a Reuters poll of economists and the Reserve Bank of India's earlier projection of 7 per cent.
However, the latest growth rate was below the revised 8.6 per cent recorded in the previous quarter. The figures therefore show strong economic activity, but do not represent an acceleration from the previous quarter.
Gross value added grew 8.2 per cent during the April to June quarter. Manufacturing expanded 9.2 per cent, while the financial services sector grew 12.1 per cent. Personal consumption increased 7.1 per cent, while private investment grew by nearly 12 per cent.
The strong economic performance came despite continuing international economic and geopolitical pressures. High oil prices, rupee weakness and tighter global financial conditions remain risks for India's economy.
More recent data also point to some caution. India's manufacturing sector expanded at its slowest pace in five years in August, according to a survey released on Tuesday.
The HSBC India Manufacturing Purchasing Managers' Index fell to 52.8 in August from 53.5 in July. A reading above 50 indicates growth. New orders increased at their slowest pace since August 2021, while factory employment fell for the first time in 30 months.
The latest manufacturing figures do not mean that the sector has entered contraction, but they show that the pace of expansion has weakened.
Modi's appeal to avoid unnecessary gold purchases is also not new. Earlier this year, he made a similar appeal as part of a broader call for Indians to reduce unnecessary overseas spending, conserve resources and support domestic economic activity.
Gold remains an important part of India's consumer and investment market. The World Gold Council said Indian gold demand softened in the April to June quarter, falling 6 per cent from a year earlier to 131 tonnes. However, spending on gold reached a quarterly record of about 1.979 trillion rupees because prices remained high.
More recent gold market data point to signs of recovery. The World Gold Council said jewellery demand strengthened after a price correction in June, while gold imports rebounded in July. Retailers and manufacturers also increased inventories ahead of the festive season.
This means that Modi's latest appeal comes at a time when India's gold market is showing mixed signals, with high prices remaining a challenge but consumer and investment interest continuing.
The Prime Minister has linked greater use of Indian goods and services with his wider vision of a self reliant India. He has also repeatedly spoken about making India a developed country by 2047, the centenary of independence.
For now, Modi's message is aimed at encouraging consumers to favour domestic products and services and keep more spending within India. The 7.8 per cent GDP growth provides a strong result for the government to highlight, but the slower pace from the previous quarter and weaker manufacturing activity in August show that challenges remain.