Prime Minister Narendra Modi urged Indian citizens to reduce petrol and diesel consumption and limit gold purchases to protect national reserves.

These measures aim to stabilize India's foreign-exchange reserves and ensure energy security as global disruptions from conflict in West Asia drive up fuel prices. The appeal marks a shift toward austerity to insulate the economy from external shocks.

In a national address on Sunday, May 11, 2024, Modi said the public should adopt several behavioral changes to reduce the outflow of currency. He encouraged the use of public transport or car-pooling and suggested that employees work from home when possible [1, 2]. The Prime Minister also said citizens should avoid non-essential foreign travel [2, 3].

Modi said there should be a restriction on the purchase of gold for at least one year [1]. Gold imports are a significant drain on India's foreign-exchange reserves, and limiting these purchases is intended to keep more capital within the country during this volatile period [3].

The Prime Minister said these steps mirror the restrictive measures seen during the COVID-19 pandemic. By reviving these habits, the government hopes to mitigate the impact of rising energy costs and geopolitical instability [2].

India remains heavily dependent on energy imports, making the economy sensitive to price spikes in the global oil market. The call for fuel conservation is designed to lower the national import bill and reduce the vulnerability of the rupee against major currencies [1, 3].

“Limit gold purchases for at least a year”

The appeal indicates that the Indian government is concerned about the volatility of its current account deficit. By targeting fuel and gold — the two largest components of India's import bill — the administration is attempting to use public behavioral changes as a macroeconomic tool to preserve foreign-exchange reserves without implementing formal state mandates.