PM Modi Urges Indians to Cut Discretionary Spending Abroad

Prime Minister Narendra Modi has urged Indians to limit their non-essential spending abroad, specifically in areas like gold purchases and foreign travel. He argues that this will help boost India's economy and reduce foreign exchange outflows.

The appeal comes as India seeks to strengthen its self-reliance amidst global conflicts and uncertainties, which have disrupted supply chains and kept energy markets vulnerable to further shocks. According to PM Modi, the country's strong growth of 7.8% in the April-June quarter is a sign of resilience, but it does not eliminate India's exposure to external shocks.

India imports more than 88% of its crude oil requirements, leaving the economy vulnerable to international energy prices. Strong gold demand can compound this pressure, making PM Modi's appeal harder to implement, especially since bullion gained almost 10% in August and spot gold is trading at around $4,430 an ounce.