Foreign‑exchange protection drives Modi’s anti‑gold campaign, Vembu explains

New Delhi, September 2 – According to Joho’s chief scientist Shridhar Vembu, the prime minister’s directive to limit gold purchases and avoid non‑essential foreign travel is rooted in the need to preserve foreign‑exchange reserves amid India’s rapid expansion. Vembu argued that a 7.8 percent growth rate intensifies the appetite for imported energy, cutting‑edge processors and high‑performance software, all of which are paid for in dollars or euros. He likened India’s path to that of former East Asian growth engines, which balanced brisk GDP gains with rigorous FX saving measures. Vembu stressed that the country’s current import dependence in critical sectors can only be offset by boosting exports, a transition that historically spans decades. Once India masters advanced technology domestically and secures renewable energy independence, the pressure on foreign‑exchange will ease.