If petroleum exports are suspended, the country can make $63 billion valued products available for the domestic market.
Chennai: While Prime Minister Narendra Modi has appealed to avoid gold purchases and postpone foreign travel to conserve forex reserves, there are alternative ways to preserve and increase forex earnings.
India’s gold imports stood at $58.9 billion in 2025, as per the data of GTRI. In comparison, oil refining companies exported $63 billion valued petroleum products to overseas markets in FY26. If petroleum exports are suspended, the country can make $63 billion valued products available for the domestic market. With lower exports, the import of crude can also be limited, preserving forex. Several Asian countries and large crude producers like Russia have suspended petroleum product exports.
Incentivizing and encouraging Foreign Currency Non-Resident (FCNR) deposit inflows by the Reserve Bank of India can boost reserves and stabilize rupee. FCNR deposits are term deposits by non-resident Indians and People of Indian Origin where funds are kept in foreign currencies without converting them into rupees. As per reports, banks hold $32.81 billion in FCNR accounts, which have 4.40 to 5.35 per cent interest rates. Getting high net-worth individuals and Indian companies abroad to deposit foreign currency in FCNR accounts will improve reserves.
Issuing bonds for the Indian diaspora during tough times, lowering cost of remittances and coming up with better investment products for NRIs will increase remittances. Projecting India as a safe place to park earnings during crises will increase remittances.
To make gold available for investment without hurting imports, RBI can set aside a portion of its gold reserves for Sovereign Gold Bonds, finds Anil Rego, founder, Right Horizons. SGB issuance has been put on hold with the rise in gold prices. The government had issued 67 tranches of gold bonds between FY16 and FY24. Investors had purchased 146.96 tonnes of gold under the scheme.
The Gold Monetisation Scheme, which was meant to reduce gold imports, can be revitalised to bring out a significant portion of the 35,000 tonnes of gold lying with households and religious institutions. The government will have to find ways to make this scheme appealing to gold owners. Of this, a large portion is held by temples and religious trusts.
The old gold recycling also can be made attractive so that the jewellers can procure a large portion of their gold from the market itself and cut their imports. With the rise in gold prices, the quantum of recycled gold was 92.7 tonnes in 2025, still a fraction of 663 tonnes of imports. Better utilization, recycling, exchange, and monetization of existing household gold can help reduce dependence on imported bullion and lower pressure on the rupee and forex reserves, finds Kedia Commodities.
While the PM has asked to avoid foreign travel, the government can relax visa norms and charges for foreign tourists this season. As several parts of the globe are hit by tensions, India can attract more foreign tourists. Southeast Asian countries are tapping this opportunity.
As far as work from home is concerned, several countries in the neighbourhood have already issued directions to increase remote working.
