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Modi has urged Indians to save dollars as war and oil shocks strain the rupee and economy further this year.
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This article looks at the impact of the Iran war on the Indian economy, with most analysts of the view that the effects have yet to be felt in any meaningful sense.
However, given that India imports 90% of its oil and half of its natural gas, the concern is that India is going to see its forex reserve dwindle in the months ahead; consequently, Narendra Modi has asked Indians to travel less and buy less gold, both of which require dollars. That also explains why the government has increased import duties on gold and silver to 15%.
Furthermore, the Indian budget deficit is forecast to be higher than the expected 4.3%, and when this is coupled with a current account deficit of $70bn, and the depreciation of the rupee, some are concerned that despite 6-6.5% growth, Indian consumers are soon going to be experiencing harsher times - and much higher inflation.