Behind Prime Minister Narendra Modi's call for austerity measures by citizens are substantial foreign exchange outflows linked to higher gold imports and spending on overseas travel under the Liberalised Remittance Scheme (LRS).
PM Modi latest statement: As dollars flow out, the Indian rupee weakens, making gold even more expensive. This creates a vicious cycle where the Indian consumer pays more rupees for gold simply because previous gold purchases weakened the rupee.
