Why no gold? Sridhar Vembu explains Modi’s push

Prime Minister Narendra Modi has urged Indians to cut back on overseas travel, foreign weddings, and unnecessary gold purchases amid 7.8% economic growth. Zoho founder Sridhar Vembu believes the answer lies in the experience of East Asian economies that achieved rapid growth while conserving foreign exchange. Vembu explained that India still relies heavily on imports for energy and technology, and as the economy grows, the need for these imports also increases.

He noted that exports are surging, but even exports require advanced technological inputs that must be imported. Vembu compared India's situation to a fast-growing company that needs to conserve capital to fund expansion, emphasizing that achieving energy independence and technological self-reliance could eventually reduce the need for foreign exchange conservation.