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## Overview Indian Prime Minister Narendra Modi urged Indians to work from home and avoid foreign travel and gold purchases amid the global energy crisis caused by the Iran war (Al Jazeera, May 11). The call represents an unprecedented peacetime austerity appeal from the Indian government and signals the severity of Iran war economic spillover effects on India. **Note:** See also existing page *US-Iran-Israel War: Economic Fallout & Supply Chain Disruption* and *India – Iran War Economic Shock: Covid-Scale Disruption Assessment (2026)*. ## Modi's Specific Appeals (May 2026) - **Work from home:** Urging Indians to reduce commuting/travel to conserve fuel (Al Jazeera, May 11) - **Avoid foreign trips:** Direct request to reduce outbound travel, likely targeting both aviation fuel demand and foreign exchange outflows (Al Jazeera, May 11) - **Avoid gold purchases:** Gold demand suppression to protect India's current account and foreign exchange reserves (Al Jazeera, May 11) ## Economic Context - India is one of the world's largest oil importers and was heavily dependent on discounted Russian and Iranian crude - Hormuz disruptions and the Iran war have created a severe energy cost shock - Prior reporting noted India faces a "Covid-scale disruption" from the Iran war energy shock - Global fund flight from Indian equities and fuel export duty hikes have already been documented - The RBI has deployed an oil FX window to manage rupee pressure ## Implications ### For Indian Businesses - Gold suppression appeals may affect jewelry sector, financial institutions, and gold-backed lending - Work-from-home push reduces commercial real estate demand and urban services consumption - Foreign travel restrictions impact aviation, hospitality, and education sectors ### For Foreign Investors - Austerity signals suggest government concern about balance of payments pressure - Potential for capital controls or tighter FX management if crisis deepens ## Status Developing crisis. India's energy vulnerability to the Iran war represents one of the most significant economic spillover narratives of 2026.