PM Modi’s appeal for austerity reminds us of Lal Bahadur Shastri’s call for fast of a time in a day post 1965 war
Addressing a rally in Hyderabad on Sunday, the prime minister Narendra Modi has appealed to countrymen not to buy gold even during the marriage ceremony for atleast one year, give up the foreign trips, work from home and minimum use of vehicles to reduce the petrol and diesel consumption.
This appeal of the prime minister Narendra Modi in view of the West Asia critical situation, the war between US, Israel and Iran and blockage of the Strait of Hormuz leading to shortage and possible surge in prices of Gas and petro products in future and subsequent weakening of Indian rupees etc has infact led to the annoyance among the opposition parties and the jewellery dealers etc.
The decision of prime minister Narendra Modi to excercise the austerity measures as above became necessary because of the worsening global situation due to the critical situation in West Asia.
The prices of the Brent Crude has surged to 105 dollar per barrel and India imports 85% of the oil from foreign countries. If the oil cost will be higher , the import bill will be bigger and the nation will loose the maximum foreign reserves ( forex).
Similarly will be the case with gold – if its sale is not restrained Gold will have to be imported from abroad and the country will lose the forex.
Every dollar spent on imports makes the situation worse and the government is trying to reduce dollar outflows.
