Why PM Modi is again asking Indians not to buy gold, travel or 'marry' abroad

Prime Minister Narendra Modi has once again urged Indians not to purchase gold or travel abroad for non-essential purposes, including weddings, to promote self-reliance amid global conflicts disrupting trade, energy markets, and supply chains. In a video message from Bishkek, Modi stated that despite India's recent strong economic growth of 7.8%, the country must collectively contribute to its economic strength by opting for swadeshi products and minimizing foreign-exchange outflows.

He emphasized that foreign travel, weddings abroad, and excessive gold purchases should be avoided as they lead to a significant outflow of foreign currency, which can exacerbate the trade deficit and put pressure on the rupee. Gold imports have surged in the first four months of the current financial year, and India's merchandise trade deficit widened in July.

India relies almost entirely on overseas supplies for its gold demand, making it one of the country's biggest import items after crude oil. Furthermore, India is the second-largest bullion buyer globally, and even a minor shift in consumer demand can significantly impact the import bill. The government's appeal aims to reduce discretionary imports during elevated external risks, not to discourage all foreign travel or gold purchases.

Modi's message is part of the broader swadeshi movement, aiming to encourage domestic consumption and strengthen the foundations of growth in the face of uncertain external factors.