Prime Minister Narendra Modi asked Indian citizens to conserve petrol and diesel and stop buying gold to support the national economy [1].
The appeal comes as India faces significant economic pressure from a surge in global oil prices. Because India relies heavily on energy imports, these price spikes threaten to deplete foreign-exchange reserves and increase inflation across the country [1, 3].
In a national address on May 10, 2024 [2], the prime minister said the public should reduce their reliance on fossil fuels. He said citizens should consider a return to work-from-home arrangements to lower the demand for petrol and diesel [3]. This shift in labor patterns is intended to reduce the volume of fuel consumed during daily commutes, a move that could lower the overall import bill.
Beyond fuel, the prime minister focused on the import of precious metals. He said Indians should avoid purchasing gold for one year [3]. Gold is a significant cultural and investment asset in India, but its import requires the expenditure of foreign currency. By curbing this demand, the government aims to stabilize the currency, and maintain a healthier balance of payments [1, 4].
Modi said citizens should limit their overseas travel to further conserve foreign-exchange reserves [2, 5]. These combined measures represent a call for national austerity to buffer the economy against external shocks.
The prime minister linked the current economic volatility to the ongoing conflict between the U.S. and Iran [1, 3]. The war has disrupted global energy markets, leading to a deepening oil crisis that affects importing nations. The administration said the measures are necessary because there is currently no clear end to the conflict [1].
“Modi asked Indians to conserve fuel and stop buying gold to help the economy.”
This appeal signals that the Indian government is concerned about the sustainability of its foreign-exchange reserves in the face of geopolitical instability. By targeting gold and fuel, two of the largest drains on India's foreign currency, the administration is attempting to use public behavioral changes to mitigate macroeconomic risks that cannot be solved through policy alone.
