Modi Urges Frugality, Woos Capital

Narendra Modi just made a bold double play—urging Indians to tighten their belts at home by cutting fuel use, skipping gold purchases, and saving on foreign travel, all while wooing global investors and partners abroad. The stakes couldn’t be higher: with the Iran war disrupting oil routes and sending India’s import bill soaring, the rupee under pressure, and reserves down by $38 billion since the conflict began, Modi’s trying to slow dollar outflows and avoid a sharper currency slide. His homegrown austerity push hit the markets fast, sending jewelry stocks tumbling and dragging down the Sensex, as investors braced for tighter times.

But here’s the catch: while households are asked to hold off on gold and travel, Modi’s racing to bring in outside money—and credibility. Citi CEO Jane Fraser’s visit to Mumbai and Tata Electronics’ landmark semiconductor deal with ASML show India’s courting Wall Street and big tech to fund its ambitions. At the same time, new diplomatic pushes—from Gulf oil contracts to possible U.S. trade deals—aim to secure energy and keep growth on track, even as the central bank warns of slower gains ahead.

Based on reporting from Reuters, Citi’s India Conference, and the Food and Agriculture Organization.

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