Prime Minister Narendra Modi has called on Indians to adopt cost-cutting measures, including avoiding gold purchases, postponing foreign travel, and working from home, to conserve foreign exchange reserves and reduce fuel consumption.
The appeal comes as the ongoing Iran-US war and surging crude oil prices have put pressure on India's economy, with the country importing more than 88% of its crude oil requirements.
Modi urged citizens to revive habits adopted during the Covid-19 pandemic, such as working from home, virtual meetings, and video conferencing, to reduce fuel consumption and save foreign exchange.
He also called for shifting freight transportation to railways to reduce dependence on fuel-intensive road transport and using petrol and diesel sparingly by opting for metro rail services, carpooling, and electric vehicles.
Modi's appeal on gold purchases is aimed at reducing India's foreign exchange burden, as the country is one of the world's largest importers of gold.
The PM also asked citizens to postpone non-essential foreign travel, overseas vacations, and destination weddings for a year to conserve foreign currency.
Analysts say gold is currently being pulled in two directions: geopolitical tensions and fears of a wider Middle East conflict are increasing safe-haven demand for gold, but higher oil prices, inflation concerns, and expectations of prolonged high interest rates are limiting gains and causing periodic declines.
