Prime Minister Narendra Modi said Monday that Indians should pause buying gold and reduce non-essential travel to ease pressure on the rupee [1].
The appeal comes as India faces a volatile economic climate driven by rising oil prices and the economic fallout of the war in Iran [2]. By reducing the outflow of foreign currency, the government aims to stabilize the national currency against the dollar [3].
Modi said citizens should avoid purchasing gold for one year [4]. Gold imports represent a significant drain on foreign exchange reserves, and a temporary halt in buying could provide the necessary fiscal breathing room for the state [2].
In addition to the gold freeze, the Prime Minister said there should be a reduction in non-essential travel [1]. This includes a request for citizens to limit foreign trips and a suggestion to increase work-from-home arrangements to minimize expenditures that contribute to dollar outflows [1], [3].
The measures are designed to counter the combined impact of higher energy costs and geopolitical instability [2]. The government is seeking a collective national effort to curb the demand for foreign currency, a move intended to prevent a sharper devaluation of the rupee [3].
Modi said from New Delhi that the request is a necessary step to protect the broader economy from external shocks [1]. The call emphasizes a shift toward domestic stability while the international situation in Iran remains precarious [2].
“Modi asked Indians to avoid buying gold for a year”
This appeal signals a high level of concern within the Indian government regarding current account deficits. By targeting gold and travel—two primary drivers of private-sector dollar demand—the administration is attempting to use social persuasion to achieve macroeconomic stabilization without implementing formal, restrictive capital controls.
