PM Modi Urges Indians To Pause Gold Purchases And Travel To Protect Forex Reserves

Modi urges Indians to delay non essential spending on gold and international travel for a year to support forex reserves amid global volatility. RBI data show rising bullion share and a sizable reserve buffer, reinforcing cautious consumption and energy import considerations.

Prime Minister Narendra Modi has asked Indians to pause gold buying and overseas holidays for one year, linking personal choices to national interest as India faces higher energy costs, global supply strains and uncertainty from the West Asia conflict that are putting fresh pressure on foreign exchange outflows and an import-dependent economy.

Modi made the appeal on 10 May 2026 while addressing a BJP rally in Hyderabad, urging people to cut non-essential foreign spending such as jewellery purchases and international tourism, and arguing that collective restraint from households would help protect India’s economy during a volatile global period.

India's forex reserves and gold imports pressures

India is among the biggest buyers of gold worldwide and relies heavily on imports to meet domestic demand, so each surge in jewellery or bullion purchases adds to the import bill in dollars and weighs on India’s foreign exchange reserves and the rupee, especially when crude oil is also expensive.

The strain from gold imports becomes sharper because India sources nearly 85 percent of its oil from overseas, and the West Asia conflict has already raised prices of crude and fertilisers, which in turn increases dollar outflows and makes policymakers more cautious about any additional discretionary imports.

India's forex reserves, gold imports and RBI data

Despite the call for restraint, official numbers show India sitting on a sizeable buffer of foreign currency assets, with the Reserve Bank of India’s latest half-yearly reserves management report stating that India’s forex reserves were at $691.11 billion at the end of March 2026, enough to fund almost 11 months of imports.

The same RBI report highlighted a notable shift in the composition of reserves towards bullion, with gold’s share in India’s forex reserves rising to 16.7 percent by March-end, compared with 13.92 percent in September 2025, a change driven by higher global gold prices and the central bank’s diversification strategy.

The RBI data also detailed that India held 880.52 metric tonnes of gold by the close of March, and more than two-thirds of this stock, or 680.05 metric tonnes, is now stored within the country after two years of steady repatriation from overseas locations aimed at improving domestic security of reserve assets.

PM Modi, gold imports and India's forex reserves strategy

The build-up of gold and foreign currency reserves mirrors trends in other central banks, which have also been adding bullion as a hedge against geopolitical and financial shocks, yet Modi argued that strong official buffers do not remove the need for caution in household behaviour when global risks remain elevated.

Framing the message as “economic patriotism”, Modi linked his request to wider behavioural changes, encouraging reduced fuel use, greater reliance on public transport such as metro rail, car-pooling and electric vehicles, more dependence on railway freight, natural farming practices and backing for swadeshi products over imported alternatives.

Modi stressed that “We have to save foreign exchange by any means,” and asked citizens to delay gold purchases and foreign vacations by a year, suggesting such temporary sacrifices would help limit pressure on the trade balance and support the rupee while the world economy faces instability.

Explaining the challenge posed by supply disruptions, Modi said, “When there is pressure on the supply chain, difficulties increase despite various measures by the government to overcome the crisis,” pointing to the limits of policy tools when shipping lanes, commodity markets and logistics are affected by conflict.

By linking everyday choices on jewellery, holidays and fuel to macroeconomic stability, the Prime Minister sought to rally public participation in easing stress on India’s forex reserves at a time when costlier gold, oil and fertilisers, coupled with external tensions, continue to test the resilience built up by the RBI over recent years.