Modiji has appealed to Indians to avoid gold purchases and foreign vacations for minimum a year. According to RBI data, foreign exchange reserves have reduced by $7.79 billion to $690.693 billion. Ongoing tensions in West Asia have pushed up the oil prices, and India depends on crude imports for more than 85 percent. This has led to economic growth by 15 points and increased inflation by 30 basis points.
Chief Investment Strategist Vijaykumar said the PM's urge to reduce the consumption of edible oil, petrol, and gold is to overcome the current account deficit issue due to the increase in crude costs.
Why PM Modi Is Appealing to Avoid Gold Purchase?
Indians are the world's largest gold consumers, and massive gold imports are equal to more import bills, which are increasing import expenses for India. VP Research Analyst, Trivedi said India is the largest importer of crude oil and gold, and this is the reason why Modiji is appealing to Indians to avoid gold purchase for minimum a year to stabilize the Indian economy.
Gold Is Driven By Global Scenarios
Currently, gold rates are driven by global scenarios, and that is affecting the Indian economy. Gold has declined to 5 percent, and investors worry that higher crude oil prices will increase inflation and impact the overall Indian economy.
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