Stories

Thu, 14 May 2026

Thu, 14 May 2026 Why Modi wants Indians to buy less gold and take fewer foreign holidays

Modi has urged Indians to save dollars as war and oil shocks strain the rupee and economy further this year.

* Prime Minister Narendra Modi has asked Indians to tighten their belts due to economic strain caused by the Iran war.
* India imports 90% of its crude oil and half of its gas needs, making it vulnerable to global energy price fluctuations.
* The country's import bill has ballooned by billions of dollars due to the Strait of Hormuz being shut for over two months.
* Oil prices have surged, leading to increased air fares, overseas holiday costs, and gold imports becoming more expensive.
* India's forex reserves have fallen by $38bn since the Iran war began, with economists warning that demand for dollars is outstripping supply at an uncomfortable pace.
* Modi's appeal for patriotic austerity has sent a wave of panic across India's financial markets, with experts predicting that prices will rise and consumers will feel the pinch.
* Economists argue that shielding everyone through artificially cheap fuel is unsustainable and instead advocate targeted relief measures, such as wartime-style subsidies for poorer households.
* India's inflation is expected to rise due to the "twin energy and Niño shocks," forcing the central bank to hike interest rates.