As the war in West Asia continues to disrupt global oil supply chains, India is beginning to feel the pressure too. Crude oil prices are rising, global shipping routes are under stress, and countries that depend heavily on imports are preparing for economic shocks.
India is one of them.
On 10 May, Prime Minister Narendra Modi made a public appeal that had every Indian talking about it. Speaking in Hyderabad, he urged people to cut fuel use, avoid unnecessary foreign travel and even pause buying gold for a year.
For a country where gold is tied to weddings, festivals and family savings, the message immediately stood out.
But this was not just about jewellery. It was about India’s economy, foreign exchange reserves and the fear of a bigger global energy crisis.
PM Modi Reduces Convoy Size Amid Fuel Crisis
Since the Iran conflict escalated earlier this year, oil prices have stayed volatile.
Brent crude crossed $100 per barrel in March amid fears around the Strait of Hormuz.
Reuters reported that the rupee has weakened by over 4% since February. Indian markets and bond yields have also faced pressure from rising crude prices.
Higher oil prices are increasing costs for transport, flights, LPG and imported goods across India.
India imports more than 85% of its crude oil needs. Rising crude prices directly affect inflation, the rupee and the country’s import bill.
The government has also started fuel-saving measures. PM Narendra Modi reportedly reduced the number of vehicles in his convoy.
Soon after, Union Home Minister Amit Shah reduced his convoy to less than half, while Mohan Yadav and Yogi Adityanath also reduced the size of their official convoys.
UP CM Yogi Adityanath Proposes 2-Day IT WFH Plan
PM Narendra Modi urged Indians to consider work from home again to reduce travel and save fuel imports. He also discouraged destination weddings abroad.
His remarks reopened the debate around whether India can realistically return to WFH culture.
Workers in tech, media and corporate sectors told NDTV that remote work improves productivity, reduces commute stress and saves time.
UP Chief Minister Yogi Adityanath also proposed a two-day WFH model for IT firms as part of fuel-saving efforts.
But India’s workforce remains uneven.
IT and digital sectors can shift online more easily, while manufacturing, retail, hospitality and small businesses cannot.
India Raises Gold Import Tariffs
India is one of the world’s largest gold buyers and imports nearly all the gold it consumes.
A February 2025 Reuters report said annual demand is expected to stay around 700 to 800 tonnes. Gold imports, paid in US dollars, add pressure on foreign exchange reserves during global crises.
India has also raised import tariffs on gold and silver to 15% from 6% to curb overseas purchases and ease pressure on forex reserves. The higher duties may dampen demand in the world’s second-largest consumer of precious metals, while helping narrow the trade deficit and support the rupee, one of Asia’s weaker currencies.
But gold in India is not just an investment. It is deeply tied to weddings, culture and social status.
World Gold Council estimates say weddings account for 50 to 55% of jewellery demand, with India hosting 11 to 13 million weddings annually.
During peak wedding seasons, jewellery sales surge as families save for gold purchases.
Modi’s appeal effectively called on families to reconsider one of India’s strongest spending traditions during global economic uncertainty.
The Politics Around It
Congress leader Rahul Gandhi criticised Modi’s remarks, calling them proof of economic failure. The comments quickly sparked a political debate online.
But beyond politics, the bigger concern remains global instability and its impact on India’s economy.
For now, the government says India has enough crude oil storage and supply arrangements. Still, Modi’s message signals that the country is preparing for a long and uncertain global situation.
And this time, even buying gold has become part of the economic conversation.
