Sridhar Vembu explains why PM modi is asking Indians to skip buying gold

Sridhar Vembu said India's 7.8 percent GDP growth does not remove the need to conserve foreign exchange. He linked Prime Minister Narendra Modi's appeal for restraint on overseas spending to India's reliance on imported technology and energy.Zoho founder and chief scientist Sridhar VembuIndia recorded 7.8 percent GDP growth in the April-June quarter, but Zoho founder Sridhar Vembu says the country still needs to be careful about how it uses its foreign exchange.He made the point while explaining why Prime Minister Narendra Modi has been asking Indians to avoid spending money on activities such as overseas travel, buying gold and holding weddings abroad."If economy is growing at 7.8 per cent why is the PM asking us not to travel abroad, not to buy gold, not to have foreign weddings etc" A look at Sridhar Vembu's tweet. According to Vembu, India's economic growth is taking place alongside continued dependence on imports. He said the country still needs foreign supplies for areas including energy and technology. As economic activity increases, the requirement for these inputs also rises, he explained. At the same time, India is increasing its exports. Vembu noted that exports can also involve imported inputs, including precision machinery, materials, CPUs, GPUs and advanced software.India still depends on imported technology and energyVembu said developing these capabilities within India will take time and pointed to the experience of several East Asian economies. Japan, Taiwan, South Korea and later China went through periods of rapid economic growth while also working to conserve foreign exchange, he said. He argued that India is in a similar phase as it builds its technological capabilities and works towards greater energy independence."Look at how long it took East Asia to catch up with the West. Their economies were growing rapidly even as they worked hard to conserve foreign exchange."Vembu said the need to conserve foreign exchange could continue until India develops greater expertise in advanced technologies and builds renewable-energy capabilities of its own."Once we gain competence in all the advanced technlogies, and achieve energy independence through renewable energy that we develop the technology for, we would no longer need to conserve foreign exchange."What PM Modi said about India's growthVembu's comments came after Modi responded to India's latest GDP figures and renewed his appeal for an Atmanirbhar, or self-reliant, Bharat."Many congratulations to the people of the country. 7.8 percent growth has filled the country with happiness. I congratulate the countrymen for their power of resolve, for their hard work; this is a reflection of collective strength," the Prime Minister said in an Instagram video from Kyrgyzstan.The latest government data showed that India's economy grew 7.8 percent during the April-June quarter, exceeding expectations. Modi also referred to the global challenges facing economies, including ongoing wars, disruptions to supply chains and uncertainty since the Covid-19 period.Vembu compared India's foreign exchange situation with that of a rapidly growing company that needs to preserve capital for investment. He said India similarly needs to conserve foreign exchange while it develops the capabilities needed to reduce its dependence on imported technology and energy.- EndsPublished By: Ankita GargPublished On: Sep 2, 2026 12:40 IST