India could save nearly USD 37.8 billion in foreign exchange reserves if citizens follow Prime Minister Narendra Modi’s recent calls to reduce imports and conserve resources, according to a report released by Brickwork Ratings on Thursday.
The report estimated that the combined impact of seven behavioural and consumption changes suggested by the Prime Minister could help save around Rs 3.59 lakh crore, assuming an exchange rate of Rs 95 against the US dollar.
On May 11, Modi had urged citizens to adopt measures such as work-from-home wherever feasible, lower fuel consumption, avoid foreign travel for a year, prefer domestically made products, reduce cooking oil usage, shift towards natural farming, and avoid unnecessary gold purchases.
Brickwork Ratings said the proposed measures could create a strong foreign exchange buffer at a time when global commodity prices and geopolitical tensions continue to pressure emerging economies.
The report noted that the largest savings would come from reducing crude oil and gold imports. Crude oil-related savings alone were estimated at USD 13.4 billion, while lower gold imports could save around USD 7.2 billion.
According to the report, wider adoption of remote working, fuel conservation practices, public transport and electric vehicles could significantly reduce India’s oil import dependence.
It also cautioned that sustained crude oil prices above USD 100 per barrel could worsen inflationary pressures and strain government finances. In such a scenario, voluntary demand reduction by consumers would help contain both fuel inflation and revenue pressures arising from lower fuel taxes.
Brickwork Ratings added that the measures could strengthen India’s economic resilience by reducing dependence on volatile global commodity markets across sectors including energy, agriculture and trade.