Author of ‘Rich Dad and Poor Dad‘ and investor Robert Kiyosaki has claimed that Prime Minister Narendra Modi’s recent speech on cutting imports and saving foreign exchange reserves sparked panic in Indian stock markets, wiping out nearly Rs 4 trillion in market value in a single day.
Kiyosaki argued in a long Facebook post that Modi’s speech was not about economic collapse, but about preparing the country for global uncertainty and rising energy costs.
“PM MODI GAVE A SPEECH & ₹4 TRILLION GETS WIPED FROM INDIA’S STOCK MARKET TODAY. NOT A CRISIS SPEECH. A PATRIOTISM SPEECH. AND THE MARKET PANICKED ANYWAY,” Kiyosaki wrote.
Modi’s appeal focused on reducing pressure on the economy
According to Kiyosaki, Modi urged Indians to reduce unnecessary spending that increases pressure on the country’s foreign exchange reserves during a period of global instability.
The Prime Minister reportedly asked citizens to use public transport more often, work from home where possible, avoid unnecessary foreign travel for a year, reduce gold purchases temporarily, support locally made products and cut fuel consumption. Kiyosaki said Modi framed these steps as acts of patriotism during a global crisis.
He also pointed to India’s dependence on imported crude oil, noting that the country imports nearly 85% of its oil needs. With oil prices rising sharply due to tensions around the Strait of Hormuz, Kiyosaki said every additional import increases pressure on the rupee and India’s reserves. “The price of petrol hasn’t increased yet in India while it has in all the other countries,” he wrote.
‘Markets reacted to fear, not reality’
Kiyosaki argued that the sharp fall in the Sensex and Nifty also reflected in fear-driven trading rather than a real deterioration in India’s economy. “The stock market did not react to reality. It reacted to fear,” he wrote.
According to him, investors and automated trading systems interpreted phrases such as “foreign exchange pressure” and “reduce gold purchases” as signs of a deeper crisis, leading to a rapid sell-off.
He said markets are often driven more by emotions and herd behaviour than by economic fundamentals. “The stock market is not a measuring instrument for economic reality. It is a measuring instrument for human emotion,” Kiyosaki said.
The investor also referred to previous global crashes, including the 2008 financial crisis and the 2020 pandemic crash, to argue that markets often fall sharply before economies weaken and recover before the broader economy improves.
Kiyosaki says government concern over gold shows its importance
A major part of Kiyosaki’s post focused on gold and India’s cultural attachment to the metal. He argued that Modi’s request to reduce gold purchases was not a warning against gold itself, but a sign of how important gold remains during uncertain times.
“When a government tells its citizens to stop buying gold — pay very close attention,” he wrote on the facebook post.
Kiyosaki explained that India is the world’s second-largest gold consumer, with annual purchases estimated at 700 to 800 tonnes. At current global prices, he said, this creates a massive outflow of foreign currency.
“In other words — India’s citizens & its culture loves gold so much that their government has to ask them to stop buying it during a crisis,” he said. “That is not an argument against gold. That is the most powerful argument FOR gold.”
Gold becomes popular during uncertainty
Kiyosaki concluded by saying that throughout history, people tend to move towards gold during wars, inflation spikes, currency instability and economic crises. “Gold is what people reach for when things get uncertain. Not stocks. Not bonds. Not savings accounts. Gold,” he wrote. He added that governments facing economic pressure have repeatedly seen citizens turn to gold as a store of value during uncertain times.
Disclaimer: The content in this article is based on a viral social media discussion and is intended for informational and entertainment purposes only. The financial figures and strategies mentioned are personal to the user and have not been independently verified. This story does not constitute financial advice or an endorsement of any specific investment strategy. Readers are advised to consult a SEBI-registered investment advisor before making financial decisions.