‘Call of the hour, not doomsday’ –  Top Industry voices back PM Modi’s austerity push, jewellers say ‘we may have to shut shop’

While some have praised the appeal as a timely and sensible warning amid global uncertainty, others have accused the government of shifting the burden of the economic crisis onto ordinary citizens.

The remarks were made by Prime Minister Modi in two separate public addresses – first at a BJP event in Hyderabad on May 10 and again on May 11 during the Sardardham Hostel inauguration in Vadodara, Gujarat. He urged the country’s citizens to rein in spending, reduce fuel consumption, postpone gold purchases, and return to work-from-home practices in response to surging global oil prices triggered by the ongoing US-Iran conflict in West Asia.

Industry leaders back PM Modi’s austerity appeal

One of the strongest endorsements came from banking veteran Uday Kotak. Speaking at the CII Annual Business Summit 2026, Kotak said India must prepare for a long period of global uncertainty and avoid “living beyond its means.” 

“We haven’t seen the impact of the war in two months, but now it’s coming, and it’s coming big,” he warned while speaking to Business Standard.

Kotak also highlighted how vulnerable India remains to rising oil prices. He explained that India’s current account deficit stays manageable at around 1% when oil prices remain near $60 per barrel. But if prices rise to $100 per barrel, the deficit could jump sharply to around 2.5%. 

TV Mohandas Pai, Co-Founder and Chairman of Aarin Capital, strongly backed the move. He said oil prices had jumped from around $65 per barrel in early March to nearly $105-110 now. Pai pointed out that oil companies are reportedly absorbing losses of around ₹1,000 crore every day to prevent fuel prices from rising suddenly for ordinary citizens.

Calling Modi’s appeal “a very sensible move,” Pai said it was better to prepare people in advance for temporary sacrifices than suddenly shock them with massive price hikes. He said the Prime Minister was trying to take citizens into confidence on issues like lower fuel consumption, cutting unnecessary imports and reducing foreign travel. 

Shobana Kamineni, Executive Vice-Chairperson, Apollo Hospitals, agreed that “austerity is the call of the hour,” but clarified that the country should not behave as though it is facing doomsday.

Corporate India responds to Prime Minister’s message

PwC India Chairperson Sanjeev Krishan told Business Today that the company had taken Modi’s call seriously and advised employees to carefully review both domestic and international travel plans. “We remain aligned with the spirit of this appeal,” Krishan said, adding that travel should happen only when there is a genuine business need.

Sunil Bharti Mittal, Chairman of Bharti Enterprises, also supported the appeal. He acknowledged that the Middle East conflict was putting pressure on economies across the world, including India. Mittal said this was the time for India to reduce dependence on imported oil, invest more in renewable energy and carefully manage foreign exchange spending.

“This is not a moment to shy away,” he said. “It is a moment to double down.”

Gautam Adani also stressed the importance of energy security. The Adani Group chairman said no country could call itself truly independent without securing its energy needs. He referred to past global shocks like the 1973 oil embargo and warned that countries dependent on imports remain vulnerable during global crises.

Rajiv Memani described the Prime Minister’s message as “sensible and pragmatic.” According to Memani, the appeal should not be seen as a sign of panic but as a reminder that India must stay cautious during difficult geopolitical conditions and avoid excessive import-heavy consumption.

Former diplomat Nirupama Rao also said the country could face “difficult times ahead” if peace efforts in the Middle East fail. Economist Charan Singh supported the call for saving fuel, carpooling, using public transport and reducing gold imports. 

Economist Amit Kapoor linked the Prime Minister’s appeal to long-term ideas like Swadeshi consumption, energy conservation and structural reforms that could make India more resilient in the future.

Sridhar Vembu backed PM Modi’s appeal by saying Zoho would soon begin partial work-from-home arrangements to help reduce fuel consumption and unnecessary travel.

‘Cherry on the cae- for cake eaters’ – Critics slam the move

Not everyone agreed with the Prime Minister’s message. Indian stock markets plunged on May 11 as investors reacted to fears of slowing consumer spending and rising geopolitical uncertainty. 

Speaking to the Federal, Santosh Mehrotra, development economist and former government adviser based at Jawaharlal Nehru University, argued that the measures being discussed would barely scratch the surface of India’s larger economic troubles. “Fact of the matter is the kind of actions he is proposing are literally at best cherry on the cake, and he is literally just mainly talking about the cake-eating people, not those who are eating dal roti,” he said. Mehrotra also said the government could not avoid difficult economic decisions forever.

The BSE Sensex dropped 1,312 points to close at 76,015, while the Nifty 50 fell 360 points to settle at 23,815. Shares connected to consumer spending, jewellery and travel were among the biggest losers. 

Still, some experts felt the market reaction was exaggerated. U R Bhat wrote in Business Standard that investors appeared to be reacting as if the country was entering another Covid-like crisis. “The markets have overreacted,” he said, adding that much would depend on how the situation unfolds in West Asia. 

Global brokerage UBS Securities also lowered India’s FY27 growth forecast from 6.7% to 6.2%, calling the conflict “a historically large energy shock with asymmetric macro risks.” 

Analysts writing in The Wire argued that India’s problems go deeper than the current war. They outlined that India’s dependence on imported crude oil has risen from around 77.6% in 2014 to over 88.6% in 2026. 

They also highlighted the weakening rupee, which has slipped from around 60 against the US dollar in 2014 to nearly 94-95 in May 2026. According to them, this decline reflects long-term issues like capital outflows, high crude prices and a stronger dollar, not just the current Middle East crisis.

Critics also questioned the timing of Modi’s announcement. Some commentators claimed the government waited until assembly elections in West Bengal and Tamil Nadu were over before making the appeal, despite political campaigns involving large-scale rallies and heavy fuel use. 

Jewellers protest against gold appeal

Around 250 jewellers in Lucknow’s Aashiyana area shut their shops for a day and staged protests after PM Modi urged people to delay buying gold for a year.  Manish Kumar Verma said the remarks could badly hurt millions of workers connected to the bullion business.

“We believe the Prime Minister’s remarks will create an economic crisis for bullion traders and crores of workers linked to this trade. If relief measures are not announced within the next few days, we may be forced to hand over the keys of our shops to the central government,” he told PTI

Sushil Kumar Jain told Siasat Daily that while national interest comes first, the economy cannot simply be paused for an entire year.

Industry leaders warned that a slowdown in jewellery demand could affect nearly 35 million livelihoods across the country. Jewellery companies also took a hit in the stock market. Shares of Kalyan Jewellers fell more than 9%, while Senco Gold dropped over 8%. Titan Company shares also slipped nearly 7%.

Opposition attacks government

Opposition leaders reacted strongly to PM Modi’s remark. Leader of the Opposition Rahul Gandhi accused the government of failing to prepare for an economic crisis.

“Yesterday, Modi Ji called upon the public to make sacrifices, do not buy gold, do not travel abroad, consume less petrol, cut down on fertilisers and cooking oil, take the Metro, and work from home. These are not sermons, these are proofs of failure,” Gandhi wrote on X.

AAP chief Arvind Kejriwal questioned why the burden of sacrifice was falling mainly on the middle class. He asked why ministers, senior officials and the ultra-rich were not being asked to make similar cuts.

“We have seen wars and crises before, but no prime minister has announced seven such strict measures together,” Kejriwal said during a press conference.

Government says there is no immediate fuel shortage

Oil Minister Hardeep Singh Puri described PM Modi’s message as a “wake-up call” but assured people there was no immediate threat to fuel supplies.

According to Puri, India currently has enough reserves, and the government is closely monitoring the situation.

Experts believe the government could introduce stronger policy measures if the conflict continues for a longer period. These could include more aggressive stance towards renewable energy, changes in import policies or even fuel price adjustments later.