Behind PM Modi's Austerity Appeal
Prime Minister Narendra Modi’s appeal for austerity, urging families to cut back on personal spending and edible oil consumption amid high fuel prices and global conflicts, is purely an act of letting down the middle class.
The middle class, often considered the “conscience keeper” of Indian society and widely recognised as the blind followers of Narendra Modi, has been “cheated” by its own deity. It has come as a rude shock that this supposedly cerebral fraternity could be misled by Modi and believe his preachings — often white lies, without questioning their rationale. Despite being a loyal support base for the BJP, the middle class continues to complain of stagnant wage growth and rising expenses. Yet this has failed to move Modi and his government.
Modi’s appeal for austerity, urging families to cut back on personal spending and edible oil consumption amid high fuel prices and global conflicts, is purely an act of letting down the middle class. A class already under strain has been made to bleed further. Modi has requested middle-class families to postpone foreign vacations, reduce edible oil consumption, and avoid purchasing gold for weddings in order to manage economic pressures.
"Hidden Mission"
Undeniably, the middle class deserved to be cautious about Modi’s moves and his hidden mission. Traditionally progressive and responsive to social needs, this class instead withdrew into itself, enrolled as saffron blind followers of Modi, and lost its rational thinking. After Modi’s suggestions, the middle class — previously a key support base, expressed frustration over the perception that the government was failing to deliver on promises of economic prosperity, especially in light of these calls for personal austerity. A deeper analysis makes it clear that the middle class has itself become a target of Modi’s politics.
While the government maintains that it is empowering the middle class through economic reforms and structural improvements, a section of this demographic feels the pressure of high living costs and limited direct relief, creating the perception of a “cheated” class. Deglobalisation is increasingly reshaping the global economic landscape, with a shift toward protectionism, supply-chain reshoring, and reduced cross-border cooperation, forcing the Indian middle class to become more cautious in its financial planning.
The middle class is facing its most vulnerable moment since 1991, driven by rising costs of housing, education, and healthcare. The shift away from global integration means that India, despite being a growing domestic market, is not immune to global slowdowns and high import costs for raw materials. Reliance on domestic consumption makes the middle class vulnerable to local economic shocks if global trade fragmentation reduces export opportunities.
Modi and the BJP are using this class for their horizontal political expansion across the country. It is sad that these people have allowed themselves to be used by Modi. The latest example was the TMC of Mamata Banerjee losing the assembly election. Bhabanipur, a constituency with a high concentration of middle-class voters, voted for the BJP. The middle class has been a key target audience for the Modi government’s populist politics, which emphasises a direct connection between the leader and the voter. While many in the middle class have benefited from improved infrastructure and simplified digital services, the real evaluation depends on whether tangible tax benefits have outpaced the rising cost of living and growing employment concerns.
"Modi on Gold Purchase"
Let us take one small example. Modi has asked people not to purchase gold for at least one year. It is a known fact that gold consumption is highest in India because of its deep-rooted cultural and religious significance, where it is considered auspicious and a symbol of wealth. Gold acts as a trusted hedge against inflation, especially in rural areas with limited banking access. Weddings and festivals drive high demand, accounting for over 50 percent of annual consumption.
Gold is deeply ingrained in Indian culture and viewed as auspicious, particularly in Hindu and Jain traditions. It is essential for weddings and festivals and forms part of regular household expenditure. Offering gold ornaments is considered an important aspect of Indian marriages, irrespective of whether the family is Hindu, Muslim, Sikh, or belongs to any caste or class. A marriage cannot be solemnised without a mangalsutra.
The 2024 Lok Sabha election campaign saw Modi make highly controversial remarks regarding “mangalsutras” and wealth redistribution. He alleged that the Congress party, if voted to power, would conduct a survey of household wealth — including gold and mangalsutras, and redistribute it to “those who have more children” and “infiltrators,” implying Muslims.
In the wake of Modi’s recent appeal for austerity, Congress President Mallikarjun Kharge attacked him, saying that his 2024 allegations about the “stealing of mangalsutras” had effectively come true in another form through rising gold loans. Modi’s blind middle-class supporters have now been advised not to purchase gold even for their daughters’ marriages.
Like many of his jumlas on nationalism, this appeal for austerity was presented as a “national responsibility” during a period of global economic crisis. One of the most absurd explanations offered publicly was that Modi’s appeal aimed to reduce gold imports in order to conserve foreign exchange reserves amid high global energy costs and the ongoing West Asia crisis, which had triggered an economic downturn. What kind of administrator fails to comprehend the economic threats the country could face in such a situation? He ought to have acted cautiously in the national interest instead of describing Israel as the “Fatherland”.
Modi Model of Governance
In addition to reducing gold purchases, the government has suggested cutting down on non-essential foreign travel and reducing fuel consumption. Yet, shockingly, Modi himself left for a five-country tour on the very same day. The stated purpose of the visit was to improve bilateral relations with those countries. However, the nature of his foreign policy efforts was exposed during Operation Sindoor, when no country openly identified with India. It was a national embarrassment.
While Modi advises Indians not to undertake foreign travel, he lavishly spends public money on his own tours. This is Modi’s model of governance. Although the opposition has questioned the irony of these tours, the government continues to incur significant expenditure on official foreign visits.
Narendra Modi’s economic narrative is crumbling under the weight of sustained unemployment, inflation, and structural mismanagement. He has manipulated economic data to conceal the real challenges India has faced under the rule of the right-wing BJP. His promises of job creation have failed, resulting in widespread unemployment across the country. He never admits that Micro, Small, and Medium Enterprises (MSMEs) have lost their future and ceased to be major job creators. Even GDP figures are manipulated. He favours his corporate allies while the general population struggles with rising inflation and declining incomes.
Calls have also been made for businesses to adopt work-from-home practices to save energy and logistical costs. A closer look at these suggestions reveals that Modi is shifting the burden of economic difficulties onto ordinary citizens. Austerity is generally practised when a government has extremely limited funds — often because of high debt, deficits, or an economic crisis, and faces the risk of defaulting on its obligations.
He has appealed for austerity measures and self-reliance under the slogan “Vocal for Local” in order to conserve foreign exchange reserves, reduce dependence on imports, and encourage work from home. However, his suggestion of work from home carries ominous implications. India already lacks a strong work culture in many sectors, and this suggestion could further damage the work environment. It could also have serious adverse consequences for job creation.
Narendra Modi remains a deeply polarising figure. He is a leader whose vision is too often accompanied by authoritarian tendencies and divisive politics, prioritising the image of development over its inclusive reality. Interestingly, a Pew Research Center survey underlines that confidence in Modi’s foreign policy is lower in parts of Europe and Latin America.
[The writer, Arun Srivastava, is a Senior Journalist. Views expressed are personal.]
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