Prime Minister Narendra Modi has urged citizens to reduce spending on gold and petroleum products amid falling foreign exchange reserves and rising import bills linked to the West Asia conflict.
Prime Minister Narendra Modi appealed to citizens on Sunday to cut back on gold purchases and petroleum consumption. He asked people to postpone non-essential foreign travel for at least a year, use public transport and electric vehicles more, revive work-from-home practices, and prioritise locally made goods.
The call comes as India’s foreign exchange reserves have fallen by $38 billion in two months to $691 billion. Gold imports reached a record $71.98 billion in 2025-26, nearly double the $35 billion recorded in 2022-23. Outflows under the Liberalised Remittance Scheme for travel totalled $15 billion in the first 11 months of 2025-26.
Crude oil prices remain above $100 a barrel due to the West Asia conflict. State oil companies are estimated to face under-recoveries of about Rs 30,000 crore a month. The rupee has weakened to 95.21 against the dollar, while the current account deficit rose to $13.2 billion in the December quarter.
Modi stressed the need for economic prudence during global uncertainty. Rajesh Rokde of the All India Gem and Jewellery Domestic Council suggested expanding the Gold Monetisation Scheme to channel idle household gold into the formal economy and reduce import dependence.
