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LIVE: PM Modi Tells Rich Indians To Forget Gold, Cut Fuel, End Foreign Wedding Spree | Gravitas

Prime Minister Narendra Modi used a televised address to ask India’s affluent class to halt gold buying for a year, curb luxury overseas weddings and trim fuel consumption. The appeal comes as the West Asia conflict threatens global energy supplies, pushing import costs higher and putting pressure on India’s foreign‑exchange reserves. The government cites data showing gold imports surged to a record 72 billion rupees in FY2024‑25 – a 24% jump – and that gold accounts for roughly 9% of the nation’s import bill, second only to crude oil. A one‑year pause could save $40‑50 billion in foreign exchange, while a 5‑10% cut in fuel use could shave $10‑15 billion off annual outlays. RBI figures reveal reserves fell 7.7 billion dollars to $690 billion, with gold holdings down $5 billion. Industry bodies warn that a sharp dip in gold demand could cripple the gems‑and‑jewellery sector, which employs over 10 million people and contributes about 7% of GDP. Opposition parties have framed the measures as an admission of economic weakness, arguing the burden now falls on ordinary citizens. The ministry, however, stresses the steps are precautionary, aiming to protect the rupee and avert a widening current‑account deficit that could exceed 2% of GDP if the crisis deepens. If the public complies, India could preserve critical reserve buffers, limit inflationary pressure from rising oil and gold prices, and keep capital within the country. Failure to curb outflows may accelerate rupee depreciation, strain the balance of payments, and exacerbate job losses in the jewellery trade, underscoring how geopolitical shocks translate into domestic economic policy.