Prime Minister Narendra Modi’s appeal to Indians to avoid buying gold for a year and cut fuel consumption sent a clear signal through financial markets Monday: the government expects the West Asia crisis to hurt longer than initially feared.
Speaking in Hyderabad, Modi asked citizens to revive Covid-era work-from-home practices, postpone unnecessary foreign travel and reduce dependence on imported goods as crude oil prices surged amid tensions around the Strait of Hormuz.
“Gold purchases are another area where foreign exchange is used extensively”, Modi said, urging families to avoid buying gold for weddings for one year.
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Oil Fears Move Beyond Energy Markets
The remarks came as crude prices reportedly climbed from around $70 to nearly $126 a barrel in recent weeks. India imports close to 90% of its crude oil, leaving the economy exposed to supply disruptions and dollar outflows.
Modi Gold Warning Hits Airlines and Jewellery Stocks
Reports showed airline and travel-linked stocks fell sharply after the speech. Shares of InterGlobe Aviation, parent company of IndiGo, dropped more than 4% in early trading. Jewellery stocks including Titan and Kalyan Jewellers also slipped between 5% and 10%. Government officials have not announced fuel price hikes yet, but pressure is building. Reports showed petrol under-recoveries near ₹24 per litre and diesel losses around ₹30 per litre for oil marketing companies.
Return of Economic Conservation Messaging
Modi repeatedly referenced remote work and online meetings during the speech. “Today, the need of the hour is that we restart those practices”, he said. The message resembled earlier economic conservation campaigns seen during previous oil shocks and the 2013 rupee crisis, when India moved to curb gold imports and reduce foreign exchange pressure.
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Economists remain divided on the seriousness of the threat. India’s forex reserves still stand near $691 billion, according to RBI-linked data.
Opposition leader Rahul Gandhi, however, called the remarks proof of government failure. The government has so far stopped short of announcing restrictions. But the repeated references to fuel discipline, gold imports, fertilizer dependence and foreign travel suggest officials are preparing the public for a prolonged period of high energy costs and imported inflation.
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