Indian PM Urges Citizens to Curb Foreign Travel and Gold Purchases Amid Energy Crisis
Sarah Shamim
Indian Prime Minister Narendra Modi has urged citizens to work from home, avoid international travel, and stop buying gold to conserve foreign exchange amid the Iran war-driven energy crisis. The conflict has sent global oil prices up nearly 50%, straining India's foreign reserves, which fell by $7.79 billion in early May.
On May 11, Indian Prime Minister Narendra Modi issued an appeal for the public to adopt energy and foreign exchange saving measures amid the US-Israel-Iran war driving up global energy prices and straining India's foreign exchange reserves.
Speaking at a public event in the southern city of Hyderabad, Modi suggested people switch from in-person meetings to online conferences and adopt work-from-home models reminiscent of the COVID-19 pandemic. He argued these changes would help reduce fuel consumption.
Additionally, Modi urged citizens to use public transport and carpool to save gasoline. He also asked families to cut back on cooking oil consumption, calling it both a healthy and patriotic act. In particular, he requested that people avoid buying gold and reduce non-essential foreign travel for at least one year. Farmers were also asked to halve their fertilizer usage.
Explaining these proposals, Modi stressed: “In the current situation, we must place great emphasis on saving foreign exchange.”
The Iran war, which began on February 28, has sharply driven up global oil prices. The international benchmark Brent crude rose from $72.87 per barrel on February 27 to $105.45 per barrel on May 11—an increase of nearly 50%. Iranian attacks on oil and gas facilities in the Persian Gulf in the early weeks of the conflict disrupted energy supplies. Since early March, Iran has also restricted shipping through the Strait of Hormuz, which prior to the war carried 20% of the world's oil and liquefied natural gas.
In April, the US announced a naval blockade on vessels entering and leaving Iranian ports, further disrupting global oil and gas supplies. Rising fuel costs have led airlines to hike fares. According to travel search site Kayak, the average international round-trip airfare from the US to global destinations in the last week of April was $1,101, up 16% from the same period last year.
Beyond oil, India is also affected by disruptions to fertilizer supplies through the Strait of Hormuz, which transports nearly half of the world's commercially traded urea—the most widely used fertilizer. Higher airfares are also impacting Indian spending on overseas travel.
India's foreign exchange reserves as of May 1 stood at $690.69 billion, a decline of $7.79 billion (about 1.12%) from the end of March. Compared to pre-war levels ($728.5 billion on February 27), the drop is even larger. According to the International Monetary Fund (IMF), India's current account deficit is projected at $84 billion in 2026.
India is the world's third-largest oil importer, with crude oil imports worth $123 billion in fiscal year 2025-2026. Gold ranks second at $72 billion in imports. Indians traveling abroad spent $31.7 billion in fiscal year 2023-2024, and the number of Indian outbound travelers rose from 27.9 million in 2023 to 30.9 million in 2024. India is also the world's largest urea importer, bringing in about 10 million tonnes last year.
While import costs for oil and fertilizers are hard to cut due to their essential roles in the economy and agriculture, gold and foreign travel are two areas where the government can appeal for restraint. However, whether Indians will follow Prime Minister Modi's call remains an open question.
