Following Prime Minister Narendra Modi's recent appeal for citizens to postpone non-essential gold purchases for a year, Ashok Sonthalia, Chief Financial Officer (CFO) of Titan Company Limited, has proposed a strategic solution to mitigate India's gold import dependence. Sonthalia suggested that India could significantly reduce its need for new gold imports by leveraging the vast existing gold reserves held by citizens, in temples, and in bank lockers.
Utilizing India's Existing Gold Reserves
"India has a lot of gold above ground with its citizens and in temples and in lockers...there can be rotation of that gold and we can actually reduce import of gold substantially," Sonthalia stated in an exclusive conversation with Business Today.
He highlighted the effectiveness of exchange programs already run by Titan and its jewelry brand Tanishq. "Titan and Tanishq have been doing exchange program in a very meaningful manner and I think that could be one major solution not only for coping up with the next 3-6 months but even going forward," Sonthalia added, suggesting these initiatives could be scaled up to address the national concern.
PM Modi's Appeal and Economic Context
Prime Minister Modi's appeal, made on May 10, 2026, urged citizens to curb spending on non-essential items like gold, reduce fuel consumption, and limit foreign travel. These measures are intended to help conserve India's foreign exchange reserves amidst the ongoing West Asia crisis, which poses significant economic challenges.
Sonthalia acknowledged that the government's primary concern appears to be the import of gold and its impact on foreign exchange. He emphasized that solutions involving the rotation of existing gold could offer both short-term relief and a sustainable mid-to-long-term strategy.
Industry Response and Future Outlook
The Titan CFO noted that the industry is still assessing the full impact of the Prime Minister's call, which came just days before his comments. He indicated that Titan would observe consumer responses and any forthcoming policy announcements from the government over the next few weeks.
Sonthalia also voiced concerns about the potential for such measures to inadvertently foster parallel markets. "Our hope and trust is that government will take a holistic view because some of these measures will not impact industry but as well as give rise to parallel markets in India which is very very unhealthy and I'm sure government is mindful of that," he cautioned. As part of various jewelry industry associations, Titan is prepared to engage in discussions to present the sector's perspective and advocate for balanced policies.