Prime Minister Narendra Modi has urged Indians to avoid buying gold for the next one year as the country faces mounting economic pressure from rising global crude oil prices amid the ongoing US-Iran conflict.
Addressing a BJP rally in Hyderabad, Modi appealed to citizens to adopt austerity measures, reduce unnecessary expenses and help conserve India’s foreign exchange reserves during the global crisis.
India imports more than 88% of its crude oil requirements, making the country highly vulnerable to disruptions in global oil supply. The prolonged tensions in West Asia and partial disruption in the Strait of Hormuz have pushed crude oil prices above $105 per barrel, increasing pressure on inflation, fuel imports and the Indian rupee.
Why PM Modi Asked Indians to Avoid Buying Gold
Modi said gold imports significantly impact India’s foreign exchange reserves because the country imports most of its gold using US dollars.
“In the national interest, we must resolve not to purchase gold for a year,” Modi said during his speech.
India remains one of the world’s largest gold importers, especially during wedding and festive seasons. Rising gold demand during a period of high crude prices can widen the trade deficit and increase pressure on the economy.
PM Modi’s Call to Reduce Fuel Consumption
The Prime Minister also urged people to minimise fuel usage and revive habits adopted during the Covid-19 pandemic, including work from home, virtual meetings and video conferencing.
He encouraged citizens to:
- Use metro rail and public transport
- Opt for carpooling
- Prefer electric vehicles
- Reduce unnecessary travel
- Shift freight transport towards railways
According to the government, the continuing disruption in the Strait of Hormuz could keep oil prices elevated for months, further increasing India’s import burden.
Appeal to Postpone Foreign Trips and Destination Weddings
Modi also asked Indians to postpone non-essential foreign travel, overseas vacations and destination weddings for at least one year to reduce foreign currency outflow.
He said the growing trend of international tourism and weddings abroad among the middle class adds pressure on India’s forex reserves during a global economic crisis.
How the US-Iran Conflict Is Impacting Gold Prices
The ongoing US-Iran war has created sharp volatility in global gold markets. Traditionally, gold is considered a safe-haven asset during geopolitical tensions. However, rising oil prices and inflation concerns are limiting gold’s gains.
After US President Donald Trump rejected Iran’s latest peace proposal, fears of prolonged conflict pushed crude prices higher and strengthened the US dollar.
Analysts say gold prices are currently being influenced by two major factors:
- Rising geopolitical tensions boosting safe-haven demand
- High interest rate concerns limiting investor interest in bullion
For India, rising global gold prices create an additional economic challenge as higher imports increase pressure on foreign exchange reserves and the rupee.
Push for Self-Reliance and Cost Cutting
Apart from reducing gold imports and fuel consumption, Modi also called for:
- Lower edible oil consumption
- Reduced use of chemical fertilisers
- Adoption of natural farming
- Increased use of swadeshi products
“We have to save foreign exchange by any means,” Modi said, stressing the importance of self-reliance during uncertain global conditions.
Congress Criticises Modi’s Remarks
The Congress party criticised the Prime Minister’s remarks, accusing the government of failing to prepare adequately for the ongoing energy crisis.
Congress leader K. C. Venugopal said the government was shifting the burden onto ordinary citizens instead of strengthening India’s energy security.
Meanwhile, Union Home Minister Amit Shah defended Modi’s appeal, calling it a “visionary roadmap” for making India energy-secure and economically self-reliant.
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Conclusion
With crude oil prices soaring and global uncertainty increasing, the Centre is urging citizens to adopt temporary cost-saving measures to protect India’s economy and foreign exchange reserves. Modi’s appeal to avoid gold purchases, reduce fuel consumption and postpone foreign travel highlights the government’s push towards economic caution and self-reliance during the ongoing global crisis.
