Union Commerce and Industry Minister Piyush Goyal on Tuesday defended Prime Minister Narendra Modi's recent appeal for austerity measures, saying the government is giving the industry and citizens a necessary "wake-up call" amid rising global economic and energy uncertainties triggered by the ongoing West Asia conflict.
Addressing criticism over PM Modi's remarks at the CII Annual Business Summit held in Hyderabad on May 10, Goyal clarified that the Prime Minister had not asked citizens to stop business-related international travel, but had instead encouraged restraint in "consumption and leisure expenditure."
"What the PM said wasn't to stop business travel. He has talked about consumption and leisure expenditure. Please go all over the world for your business, spend money to get more money, foreign exchange and investments," Goyal said while responding to criticism from opposition parties.
PM Modi had urged citizens to adopt austerity measures for one year to help India conserve foreign exchange reserves and reduce dependence on imports amid soaring global crude oil prices and geopolitical tensions linked to the US-Iran conflict. In his address, the Prime Minister encouraged people to reduce fuel consumption, revive voluntary work-from-home practices, avoid destination weddings and overseas vacations, and limit non-essential purchases such as gold.
The Prime Minister also stressed the importance of domestic tourism and local celebrations, saying India's heavy dependence on imported fuel makes energy conservation crucial during periods of global instability.
Opposition parties, including Congress, criticised the remarks, calling them "hypocritical" and "proof of government failure," alleging that the Centre was shifting the burden of economic challenges onto citizens.
Without directly naming the opposition, Goyal dismissed the criticism, saying the Prime Minister's calls for action were being trivialised through "frivolous comments." He added that no country has become developed by being "inward-looking" and reiterated that Indian businesses and startups should continue expanding globally and participating actively in international trade.
The minister said the government's focus remains on strengthening India's economic resilience through targeted investments, higher exports, stronger foreign exchange reserves and self-reliant supply chains.
Meanwhile, government sources clarified that no proposal is currently under consideration to mandate work-from-home arrangements for the IT sector despite PM Modi's appeal to reduce fuel usage. According to reports, the IT industry has already adopted hybrid work models after the pandemic, making a formal directive unnecessary at present.
Sources also said that any policy decision regarding mandatory remote work falls under the Labour Ministry and that "nothing is in the works currently."
At the same time, Sanjay Malhotra warned that India may eventually have to increase petrol and diesel prices if the West Asia conflict continues to push up crude oil prices globally. He noted that rising energy costs are testing India's inflation management framework and may require intervention by the Reserve Bank of India.
According to a recent report by Crisil Ratings, Brent crude oil prices are expected to average between $90 and $95 per barrel in FY27, marking a sharp increase year-on-year and raising concerns over inflation and transportation costs.
