There is only one discussion going on from every square to the social media that why did the Prime Minister refuse to buy gold? In fact, on Sunday, PM Modi made several appeals to the people of the country, on Monday also he repeated the same thing. After which now different meanings are being inferred from PM Modi’s statement. Are they indicating some major crisis?
PM Modi has actually appealed to the people of the country to stay away from gold for the next one year. Apart from this, it has also been advised to curb the consumption of petrol, diesel and edible oil. Also, if you are fond of traveling abroad, then put that on the back burner for a few days. Now the essence of this statement of PM Modi is being extracted, in the global scenario this appeal has different economic and political meanings. Because PM Modi in his statement mainly SleepCrude oil and edible oil have been mentioned. Which are imported in huge quantities every day.
PM Modi’s appeal to 140 crore people
It is no secret that India is progressing fastest in the world on the path of economic progress, and the whole world knows this, but the global situation is currently not favorable for the Indian economy. Especially in West Asia, the temperature of tension is rising and falling every day. Due to which the Indian economy is being hurt.
Tension is also at its peak in Hormuz, where one-third of the world’s oil passes. As a result, the price of crude oil remained above $100 per barrel, which was around $75 per barrel before the war. India buys more than 85% of its crude oil needs from abroad. To buy it we need not use our currency ‘rupee’ but us dollar Have to give.
Whenever crude oil becomes expensive, the Indian economy stagnates. Because to buy oil at a higher price, extra dollars have to be spent. PM Modi knows that oil is our compulsion, grains will reach only if trucks run, goods will be manufactured only if factories run. Therefore, he has appealed to cut down on ‘voluntary’ things. If you do not buy gold, use less edible oil or do not travel abroad, then the dollars which were meant to be spent there, will be used by the government to buy oil. This is a decision directly related to the country’s foreign exchange reserves.
attempt to revive rupees
When we import too much, the demand for dollars increases in the market and the value of rupee falls. At present the rupee has slipped beyond 95 against the dollar. If the rupee continues to fall like this, then a century will be achieved in a few days. If the value of dollar reaches close to Rs 100, it means that inflation will take hold of the country. The purpose of PM’s appeal is to reduce the demand for dollars, so that the rupee can be saved from falling further.
Actually, the biggest reason behind PM Modi’s appeal is related to the economic stability of the country. The objective of the government is to keep the ‘Current Account Deficit’ under control. In simple words, more money should not go out than is coming into the house. Gold and foreign travel are expenses which can be avoided. Because heavy import of gold increases the trade deficit of the country.
India had imported a total of 721.03 tonnes of gold during the financial year 2025-26. Its total import value was approximately Rs 6,11,830 crore. According to this, India imports an average of 1.97 tonnes (about 2,000 kg) of gold every day, that is, it imports about 82 kg of gold every hour. Not only this, during the wedding season and festivals in our country, the demand for gold reaches 4 to 5 tonnes every day on an average. Therefore, PM Modi has appealed to the people to stay away from gold for a year, so that the Indian economy remains strong.
This is the real purpose of creating distance between dollars
Now coming to the big question, is India keeping distance from the dollar? This cannot be answered in ‘yes’ or ‘no’. India does not want to eliminate the dollar, but definitely wants to reduce its dependence on the dollar. Today the world seems divided into two parts regarding the strength of the dollar. The way Russia’s dollar reserves were frozen after the Russia-Ukraine war has alerted many countries including India. PM Modi’s message is clear that we have to make our economy so strong and self-reliant that the fluctuations of the dollar in the global market do not affect the plates of the poor and middle class. When we reduce the use of dollars, the impact of global shocks will be less on us.
Why did the PM talk about work-from-home (WFH) and carpooling? This is not just to reduce traffic. If 20% of office goers work from home, there will be a huge decline in the consumption of petrol and diesel. If consumption decreases, demand will also decrease. That is, this is the phase of ‘Digital India’, where the Internet is being used as a weapon to save the country’s foreign exchange.
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