Iran war aftermath: Why Modi asks Indians to avoid foreign travel, gold? | | Articles of Controversy

Prime Minister Narendra Thank you has urged Indians to work from home, avoid international travel and not to buy gold during this period United States-Israel war in Iranwhich has led to a rise in energy prices globally, adding to the pressure on India’s foreign exchange.

Modi pleaded at a public event in the southern city of Hyderabad on Sunday.

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Here are some of Modi’s statements, which are causing concern for the Indian government and how they relate to the Iran war.

What did Modi say?

Modi said people should go to online meetings instead of partying and use the work-from-home approach that has been adopted across the world during the COVID-19 pandemic. He explained that this practice will reduce fuel consumption.

In addition, Modi encouraged people to use public transport and cars to conserve fuel. They have asked families to reduce their consumption of cooking oil saying that the move is good and patriotic.

Modi also asked Indians not to buy gold and to limit unnecessary foreign travel for a year. The Prime Minister asked farmers to reduce the use of fertilizers by half.

And he explained his justification for asking the people of India to change their lives and their plans: “Right now, we have to put more emphasis on saving foreign currency.”

What was Modi saying “here”?

In short, Modi was talking about the Iran war and its economic consequences, especially in India.

At the start of the war, Modi likened the economic crisis caused by the conflict to what happened during the COVID-19 pandemic. On Sunday, he added this to ask Indians to follow other measures to prevent the world from the coronavirus crisis.

Oil prices have risen due to the war in Iran, which began on February 28. A barrel of Brent crude, the international benchmark, was worth $72.87 on February 27. As of Monday, a barrel of Brent crude was worth $105.45, an increase of about 50 percent.

Iran’s attacks on oil and gas in the Gulf in the first weeks of the war affected the energy sector. Since the beginning of March, Iran has also banned the crossing Hormuz Rivera narrow waterway through which 20 percent of oil and natural gas flowed before the war. Iran has allowed ships from selected countries to pass through the Islamic Revolutionary Guard Corps.

In April, the US announced a naval blockade on ships entering or leaving Iranian ports, further disrupting oil and gas supplies around the world.

With rising fuel prices, airlines have said ticket prices. According to travel research site Kayak, average international flights from the US to all destinations were $1,101 last week in April, a 16 percent increase from the same time last year.

About half of the urea sold in the world, many It is widely used as a fertilizerand large volumes of other fertilizers are shipped from the Gulf countries through the Strait of Hormuz. Those things are now very messed up.

“Patriotism is not only about the willingness to sacrifice one’s life at the border, but at this time, it is about being responsible and fulfilling our responsibilities to the country in our daily lives,” Modi said.

And their duties and responsibilities, according to Modi’s comments, come from India’s foreign reserves.

What are the foreign exchange reserves of India?

India’s foreign exchange as of May 1 was $690.69bn, down $7.79bn, or about 1.12 per cent, from the end of March, according to the Reserve Bank of India, the central bank.

Compared to where India’s reserves were before the war, the fall is even worse. As of February 27, India’s foreign exchange reserves stood at $728.5bn.

The International Monetary Fund has predicted that India’s current account deficit (CAD) will be $84bn in 2026. A negative CAD means that it has been overspent – it has spent more than it has.

What do oil, gold, foreign travel and fertilizers have to do with all this?

India is the world’s third largest importer of oil from China and the US.

From April 2025 to March, India’s last fiscal year, the country exported $123bn worth of crude oil. This is the single largest sector that has contributed significantly to India’s imports.

In second place? Gold. Indians produced gold worth $72bn in the 2025-2026 financial year, second in the world to China.

According to travel insurance company ACKO, Indians traveling abroad spent $31.7bn in 2023-2024. In 2024, about 30.9 million Indian citizens left India, according to a study from the Bureau of Immigration. This is up from India’s estimated 27.9 million in 2023.

India is also the world’s largest exporter of urea – it imported about 10 million tonnes of the fertilizer last year, according to an analysis by S&P Global.

Why is this worrying India right now?

India’s foreign exchange reserves have decreased due to the increase in oil, gold, fertilizers and by Indians spending abroad.

However, of these investments, oil and fertilizers are the most difficult for India to reduce. Energy exports are essential to India’s economy, and fertilizers are vital to the country’s economy – more than half of the country’s households depend on agriculture – and food.

This leaves the gold and foreign travel. It is not clear whether Indians will receive Modi’s phone call.