SRINAGAR: Narendra Modi on Sunday called on citizens to become active partners in protecting India’s economy amid mounting pressure from the ongoing West Asia conflict, rising crude oil prices and stress on foreign exchange reserves.
Addressing a public function in Hyderabad, the Prime Minister made a series of appeals aimed at reducing India’s dependence on imports and conserving foreign exchange, warning that the country must prepare for prolonged global economic uncertainty triggered by the crisis around the Strait of Hormuz.
Modi urged people to reduce consumption of imported fuel by using public transport, adopting carpooling practices and reviving work-from-home arrangements and online classes wherever possible. He also appealed to citizens to postpone non-essential foreign travel, avoid buying gold for a year, reduce edible oil consumption and support the use of organic alternatives to imported chemical fertilisers.
“Today, the need of the hour is that we restart those practices,” the Prime Minister said while referring to online meetings, video conferences, work-from-home systems and digital modes adopted during the Covid-19 pandemic.
The appeal comes as crude oil prices have surged above 100 US dollars per barrel amid fears of prolonged disruption in global energy supplies. Prices had touched a 52-week high of 126 dollars per barrel late last month as tensions escalated in West Asia and shipping uncertainty persisted around the Strait of Hormuz, one of the world’s most critical oil transit routes.
India imports nearly 90 per cent of its crude oil requirements, making the economy highly vulnerable to oil price shocks and rising dollar outflows.
The Prime Minister also highlighted the pressure created by gold imports on India’s foreign exchange reserves. India imported nearly 72 billion dollars’ worth of gold during FY26, making it one of the country’s largest import components after crude oil.
According to economic estimates cited after the speech, a sharp reduction in gold imports for one year could potentially save between 20 billion and 36 billion dollars in foreign exchange outflow, helping ease pressure on the rupee and the current account deficit.
Modi further urged farmers to reduce dependence on imported fertilisers and promote natural farming methods, saying excessive reliance on imported agricultural inputs also consumes valuable foreign exchange.
The Prime Minister linked the appeals to the broader goal of achieving a “Viksit Bharat” by 2047, stressing that self-reliance, “Vocal for Local” initiatives, and responsible consumption were essential during a period of global instability.
The speech triggered immediate reactions across financial markets on Monday.
Shares of aviation, jewellery and travel-related companies declined sharply in early trade amid concerns that the government expects prolonged pressure on oil prices and discretionary spending.
Shares of InterGlobe Aviation, parent company of IndiGo, fell more than four per cent in morning trade, while jewellery stocks including Titan Company, Kalyan Jewellers and Senco Gold also recorded sharp declines after the Prime Minister remarked on gold purchases.
Economic analysts said the speech reflected a coordinated effort by the government to prepare citizens for sustained imported inflation, rising fuel costs and pressure on India’s foreign exchange reserves as geopolitical tensions continue to disrupt global trade and energy markets.
