In a significant show of solidarity, major corporate houses and industry bodies have voiced their support for Prime Minister Narendra Modi’s call to curb non-essential imports—specifically gold and foreign travel—as India navigates the economic fallout of the US-Iran conflict.
While the “austerity” message initially rattled the stock market, top executives at the Confederation of Indian Industry (CII) annual summit clarified that the appeal should be viewed as a pragmatic move toward self-reliance rather than a signal of panic.
Key Industry Reactions: “Calm, Not Alarm”
| Leader | Organization | Core Message |
| Sunil Bharti Mittal | Bharti Enterprises | “The PM’s message was very profound. We need to get away from this obsession with importing gold and vote with our feet—spend and invest more locally.” |
| Rajiv Memani | EY India | Labeled the appeal as a “sensible and pragmatic ask” to ensure the country remains mindful of current geopolitical challenges. |
| Shashwat Goenka | RP-Sanjiv Goenka | Viewed the call as a path to becoming Atmanirbhar (Self-reliant) and ensuring GDP targets are met despite global tension. |
| Naresh Trehan | Medanta Group | Stated that “unless the public is rallied” against rising energy costs, global economic pressures could become a major domestic problem. |
Corporate Action: Hybrid Work and Reduced Travel
India Inc is moving beyond verbal support, with several conglomerates and consultancies already reviewing their operational policies to reduce fuel consumption:
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Work-From-Home (WFH): Companies like KPMG India, Deloitte, EY, RPG Group, and Tata Motors have confirmed they will double down on hybrid and remote work models to help conserve fuel.
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Travel Policies: Firms are actively monitoring situation-based needs, with plans to reduce non-essential domestic and international corporate travel.
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Tourism Industry Support: The Federation of Associations in Indian Tourism and Hospitality (FAITH) endorsed the sentiment of reducing leisure travel and “destination weddings” abroad to protect forex reserves.
Market and Sectoral Impact
Despite the long-term support from corporate leaders, the immediate impact on specific sectors has been sharp:
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Jewellery Sell-off: Shares of Titan (-6.7%), Kalyan Jewellers (-9.3%), and Senco Gold (-8.5%) plummeted as investors feared a steep decline in demand for the next 12 months.
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Gold Import Duty: Amid fears of a duty hike to curb imports, government officials clarified that there is no immediate plan to increase import duties on gold and silver, despite the PM’s appeal.
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Outbound Travel: The Travel Agents Association of India (TAAI) noted that while the move is nationally prioritized, outbound travel agencies may face significant revenue pressure, shifting their focus to the domestic market where margins are typically lower.
The Economic Context: Safeguarding Forex
The Prime Minister’s appeal stems from a record surge in imports during FY26, where gold and silver accounted for nearly 11% ($84 billion) of India’s total import bill. With oil prices near $105/barrel, reducing discretionary imports is seen as a vital strategy to prevent a blow-out of the Current Account Deficit (CAD) and stabilize the Rupee, which recently hit a record low of 95.31 against the dollar.
