The World Msme Forum Has Strongly Condemned The Recent Appeal Made By Prime Minister Narendra Modi
May11,2026
| Jagrati Lahar Bureau | Ludhiana
STATEMENT IS ANTI JEWELRY & TOURISM INDUSTRY
The World MSME Forum has strongly condemned the recent appeal made by Prime Minister
Narendra Modi urging citizens to reduce gold purchases, limit foreign travel and revive work-from-
home practices due to rising global energy prices and pressure on foreign exchange reserves.
Badish Jindal, President of the World MSME Forum, stated that such statements from the country’s
highest leadership can create unnecessary panic and uncertainty in major employment-generating
sectors such as gems & jewellery, tourism, hospitality, aviation and retail trade. He stated that instead
of discouraging domestic spending in these sectors, the government should focus on controlling the
massive outflow of foreign exchange caused by unchecked imports of non-essential and cheap
Chinese products.
The World MSME Forum stated that India’s gems and jewellery industry is one of the country’s most
important economic sectors. The industry contributes nearly 7% of India’s GDP and around 15% of
total merchandise exports while providing direct and indirect employment to more than 50 lakh
people including artisans, karigars, traders, transporters, polishers, small manufacturers and retailers.
Lakhs of MSMEs across states such as Gujarat, Maharashtra, Punjab, Rajasthan, Tamil Nadu and
West Bengal are dependent upon this sector for survival.
The Forum further stated that India’s tourism and travel industry is also a major pillar of the economy
contributing approximately 7–8% to India’s GDP directly and indirectly while supporting crores of
jobs in hotels, restaurants, airlines, transport companies, tour operators, handicrafts and local markets.
Any statement that discourages travel or creates fear regarding economic conditions can badly affect
consumer confidence and business activity in these sectors which are still recovering from previous
economic slowdowns.
Badish Jindal stated that Indian citizens traditionally invest in gold because it has historically
remained one of the safest and most trusted financial assets in India. In periods of inflation, market
instability and weakening currency, gold acts as a financial security for middle-class and business
families. He stated that low bank deposit returns, volatility in stock markets and uncertainty in global
financial markets have naturally increased the public preference towards gold investment. Therefore,
discouraging gold purchases through public appeals may send negative signals regarding the
economic condition of the country and foreign exchange position.
The World MSME Forum observed that the continuous weakening of the Indian Rupee against the
US Dollar has already increased industrial costs, import bills and inflationary pressure on Indian
MSMEs. Instead of targeting domestic industries like jewellery and tourism, the government should
immediately take strong measures against unnecessary imports and dumping of cheap Chinese goods
which are severely damaging Indian manufacturing.
Badish Jindal stated that China has captured a large share of the Indian market in sectors such as
electronics, toys, lighting products, machinery, chemicals, electrical goods, consumer appliances,
solar equipment, mobile accessories, decorative items, hardware, textile accessories and thousands of
low-value consumer products. Indian MSMEs are unable to compete with heavily subsidised Chinese
goods being dumped at very low prices in the Indian market.
The Forum stated that India imports a massive volume of goods from China every year, resulting in a
huge trade imbalance and heavy outflow of foreign exchange reserves. Cheap imports from China
have forced thousands of small Indian manufacturing units either to shut down or operate at very low
capacity. This has negatively impacted employment generation, domestic production and the “Make
in India” mission.
The World MSME Forum questioned why the government is hesitating to impose stronger
restrictions and higher duties on non-essential and low-quality imports while simultaneously
appealing to Indian citizens to reduce gold purchases and foreign travel. The Forum stated that if the
government genuinely wants to reduce pressure on foreign exchange reserves and strengthen the
Rupee, then immediate policy action is required to reduce dependency on Chinese imports and
promote Indian manufacturing.
The Forum demanded immediate imposition of higher duties and quantitative restrictions on non-
essential imports, particularly cheap Chinese products which have viable Indian alternatives. It
further urged the government to provide stronger protection and incentives to domestic MSMEs,
local manufacturers and labour-intensive industries.
Badish Jindal stated that the long-term solution to strengthen India’s economy lies in boosting
domestic manufacturing, increasing exports, reducing dependency on imported goods and creating
confidence among Indian consumers and investors rather than creating panic in employment-
generating sectors like jewellery and tourism.
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