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EconomyIndian Express11 May 2026

PM Modi urges citizens to cut petrol use, skip gold purchases for a year amid West Asia crisis

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๐Ÿ“Œ Summary:

  • PM Modi, addressing a public meeting in Hyderabad, made an unprecedented national appeal for collective sacrifice amid the ongoing West Asia conflict that has disrupted global energy supplies.

  • Key appeals: (1) Use public transport, metros, carpooling; (2) Increase use of EVs; (3) Revive Covid-era work-from-home and virtual meetings; (4) Avoid non-essential foreign travel for a year; (5) Avoid gold purchases for a year; (6) Prioritise locally-made goods over imports.

  • Context: West Asia war (Iran-related conflict began February 28, 2026) has caused a crisis in the Strait of Hormuz โ€” a critical chokepoint through which India imports ~80% of its crude oil.

  • The Strait of Hormuz crisis has disrupted global energy supply chains, pushed crude prices higher, and increased India's foreign exchange outgo on oil and gold.

  • "During a global crisis, we have to take resolutions keeping the country above all" โ€” PM Modi's framing positions conservation as a national duty.

  • Gold imports are India's second-largest import item after crude oil; cutting gold purchases directly reduces CAD (Current Account Deficit) pressure.

๐ŸŽฏ UPSC Relevance: GS3 โ€” Indian Economy (energy security, current account deficit, forex reserves); also GS2 (governance, PM's role in public policy communication).

๐Ÿ“ Prelims Facts:

  • Strait of Hormuz: ~80% of India's crude oil passes through this chokepoint; controlled by Iran-UAE geography.
  • India's crude oil import dependence: ~85% of domestic consumption is imported.
  • Current Account Deficit (CAD): India's CAD is heavily influenced by oil and gold imports.
  • Gold is India's second largest import after crude oil; India is one of the world's largest gold consumers.

๐Ÿ”‘ Key Term: Strait of Hormuz โ€” a narrow strait between Iran and the Oman peninsula; the world's most important oil chokepoint through which ~20% of global oil trade passes; critical to India's energy security.

West Asia crisisStrait of Hormuzenergy securitycrude oilgold importsCAD

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