Prime Minister Narendra Modi said Indian citizens should conserve fuel, avoid buying gold, and limit foreign travel to mitigate an economic crisis [1, 2].
The measures aim to cushion the national economy against an oil price shock and fuel shortages driven by the ongoing war in West Asia [1, 2]. Because India relies heavily on imported energy, sudden price spikes can destabilize the currency and increase inflation across the country.
Modi said the public should reduce the use of petrol and diesel to lower the national demand for fuel [2]. This call for austerity comes as state-run oil companies face severe financial pressure, losing approximately ₹1,000 crore daily [1].
In addition to fuel conservation, the Prime Minister said citizens should refrain from purchasing gold [2]. Such a move is intended to prevent further capital outflow and stabilize the economic impact of the regional conflict [1].
To lead by example, the Prime Minister has modified his own travel arrangements. Only two vehicles were observed in Modi's convoy, a significant reduction from the usual 25 vehicles [3].
The appeal has sparked political backlash and a reaction from the markets [1, 2]. Critics have questioned the effectiveness of individual austerity measures in the face of global geopolitical shifts, while investors remain spooked by the request to avoid gold [2].
“Prime Minister Narendra Modi appealed to Indian citizens to conserve fuel, avoid buying gold, and limit foreign travel”
The Indian government is attempting to manage a systemic economic shock by appealing to civic duty and personal sacrifice. By targeting fuel consumption and gold imports, the administration seeks to reduce the current account deficit and slow the depletion of foreign exchange reserves during a period of extreme volatility in the energy markets.
