All India Congress Committee General Secretary and MP Randeep Singh Surjewala. | Photo credit: ANI
The Congress on Friday (May 15, 2026) described Prime Minister Narendra Modi’s call to delay gold purchases by a year as a “death sentence” for the jewelery sector and demanded that the Center announce a special economic relief package for nearly 3.5 million people dependent on the sector.
“This recommendation is disastrous. It is an attack on the livelihood of backward communities, traditional artisans, goldsmiths, traders and workers associated with the jewelery trade,” Congress general secretary Randeep Surjewala said at a press conference here.
Accusing the Union government of pushing the sector towards an “undeclared lock-in”, Mr Surjewala said the Prime Minister’s appeal along with the decision to increase import duty on gold and silver from 6% to 15% would severely hit small jewelers and encourage smuggling and illegal trade.
To support the domestic mobilization of gold
“We demand that the Modi government immediately announces a special economic assistance package for goldsmiths, traders, artisans and workers involved in the gold jewelery industry worth ₹3.5 crore,” he said, adding that the government should also encourage domestic gold mobilization, recycling and utilization of unused gold stock in households.
Mr Surjewala argued that the Prime Minister’s remarks amounted to an attack on India’s cultural and social traditions, arguing that gold remains an integral part of religious customs and serves as a financial safety net for millions of women.
Mr Surjewala sharpened his attack on the Prime Minister, recalling Mr Modi’s April 2024 election speech in Banswara, Rajasthan, in which he accused the opposition of wanting to “rip off mangalsutras” from women.
“The same prime minister is now advising people not to buy gold,” he said.
The Congress General Secretary said that over 90% of India’s jewelery trade operated through SMEs (micro, small and medium enterprises) and small jewellers, while the gems and jewelery sector contributed over 7% to the country’s GDP and nearly 12% of exports. More than 85% of the exporters in this sector belonged to the MSME category, he added.
He further argued that the increase in import duty would encourage gold smuggling, noting that law enforcement agencies seized more than 2.6 metric tons of gold in 2024-25, while industry estimates put annual smuggling at 10 to 15 metric tons.
The Congress also questioned why the government and the Reserve Bank of India (RBI) increased sovereign gold holdings from 794.64 metric tonnes in September 2025 to 880.52 metric tonnes by March 2026, while simultaneously advising citizens against buying gold jewellery.
Mr. Surjewala argued that repeated political upheavals, including demonetisation, excise duty measures, implementation of GST and mandatory stamp duty norms, have already weakened the sector. He also asked whether the BJP intended to hand over the jewelery business to two or three large corporate groups by undermining small jewelers and artisans through higher duties and reduced consumer demand.
Published – 15 May 2026 21:59 IST
