Modi Revives Appeal to Indians to Avoid 'Non-Essential' Foreign Purchases

India's Prime Minister Narendra Modi has renewed his appeal to Indians to avoid unnecessary foreign travel and purchases of gold, citing the need for self-reliance in a time of global economic disruption. In a video message from Bishkek, Modi emphasized that choosing swadeshi products and reducing foreign-exchange outflows is crucial for India's economic strength.

The appeal comes despite India posting a stronger-than-expected 7.8% economic growth for the quarter ended June. However, Modi stressed that gold imports have risen sharply this year, with shipments in the first four months of the financial year beginning in April more than 32% higher than a year earlier.

Gold is India's biggest import item after crude oil, and its demand is almost entirely met through overseas supplies. When Indians buy more gold, it adds to the trade deficit and puts pressure on the rupee. Modi warned that foreign holidays and destination weddings also involve significant outflows of foreign currency.