Prime Minister Narendra Modi said Sunday that Indians should stop buying gold and avoid foreign travel for one year to protect the national currency [1, 2].
The appeal targets a critical drain on foreign-exchange reserves as India faces a double economic squeeze from high commodity prices and significant import costs [1, 3].
Speaking in Hyderabad, Telangana, Modi said citizens should postpone international trips and adopt work-from-home arrangements for the next 12 months [2, 4]. He also called for a reduction in the import of edible oil, fertilizer, and fuel to conserve foreign exchange [1, 2].
The Prime Minister's request comes as the rupee faces intense pressure. A primary driver of this instability is the cost of gold, with imports in FY2026 reaching $72 billion [5].
External pressures have been exacerbated by the war in Iran, which has driven up global crude-oil prices [1, 3]. Because India relies heavily on energy imports, the rising cost of oil further depletes the reserves used to stabilize the rupee [1].
Modi said these collective sacrifices are necessary to maintain economic stability during a period of global volatility [2, 4]. The request to limit gold purchases is particularly significant given the metal's deep cultural and economic role in Indian society, especially during weddings [3].
Government officials have not yet announced formal legislation or tariffs to enforce these requests, but the speech has put several economic sectors on alert [4].
“Modi urged Indians to avoid buying gold, postpone foreign travel and work from home for a year”
This move signals an urgent effort by the Indian government to manage a balance-of-payments crisis without resorting to immediate, aggressive regulatory lockdowns. By appealing to patriotism and civic duty to curb the $72 billion gold import bill and foreign travel, the administration is attempting to stabilize the rupee through voluntary consumption reduction rather than solely relying on central bank interventions or restrictive trade laws.
