India's Modi urges citizens to curb gold purchases and work from home as Iran war strains economy
Prime Minister Narendra Modi addressed the nation in a televised broadcast on May 11, 2026, urging Indians to reduce gold consumption and to adopt work‑from‑home arrangements wherever possible. Modi linked the appeal to the economic fallout from the ongoing war between Iran and the United States, which has caused volatility in oil markets and increased inflationary pressures across South Asia.
The Iranian‑U.S. conflict, now entering its second year, has disrupted global petroleum supplies, pushing crude prices above $120 per barrel. India, a major importer of oil, has seen its trade deficit widen, prompting the government to seek cost‑saving measures. Gold, traditionally a safe‑haven asset for Indian households, has seen a price surge of 15 % in the past six months, further straining family budgets.
Middle East Eye's article (ID 33635) reported that Modi specifically advised consumers to "avoid buying gold for investment purposes" and highlighted the advantages of remote work for sectors like IT and finance. The piece also cited a Ministry of Finance spokesperson who warned that continued high import bills could force the Reserve Bank of India to raise interest rates. Reuters, referenced in the same report, noted that the Indian government is negotiating with Gulf suppliers for discounted oil contracts to mitigate the impact.
Economists see Modi's directives as a pragmatic response to a tightening fiscal environment. Dr. Arvind Rao, senior economist at the Indian Council for Research on International Economic Relations, argued that curbing gold demand could free up foreign exchange reserves, while promoting remote work aligns with India's post‑pandemic productivity goals. However, consumer groups warned that the advice may disproportionately affect small traders and artisans reliant on gold sales for livelihoods.
Looking ahead, the finance ministry plans to release a detailed policy brief on May 20, outlining additional measures such as increased customs duties on luxury imports and incentives for renewable energy projects. Analysts will watch for any subsequent moves by the Reserve Bank of India, which could signal a shift in monetary policy if inflation remains elevated. The trajectory of the Iran‑U.S. conflict, especially any escalation that further disrupts oil supplies, will be a critical factor shaping India's economic strategy in the coming months.