Zoho founder Sridhar Vembu has offered an economic rationale for Prime Minister Narendra Modi's recent appeal to Indians to cut back on foreign travel, overseas weddings and gold purchases, framing it as a foreign exchange conservation strategy similar to that used by East Asian economies during their growth phases.
The Context Behind PM Modi's Appeal
PM Modi renewed his push for Swadeshi and self-reliance this week after India recorded 7.8$% GDP growth in the April-June quarter of FY 2026-27.
In a video message posted on social media, the Prime Minister urged citizens to avoid foreign holidays, refrain from hosting destination weddings abroad, and steer clear of unnecessary gold purchases, promoting the mantra "Wed in India" instead.
He linked the appeal to the broader goal of building an Atmanirbhar Bharat, or self-reliant India, arguing that sustained growth would require greater reliance on domestic production and services.
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Vembu Responds To A Popular Query
The appeal prompted entrepreneur Sumanth Raman to ask on X why the government was discouraging such spending if the economy was genuinely growing at 7.8%, and why stock markets remained largely stagnant.
Responding to the query, Zoho co-founder Sridhar Vembu offered a detailed explanation rooted in the experience of East Asian economies. "East Asian nations (Japan, Taiwan, South Korea and later China) all went through a phase of rapid GDP growth combined with the need to conserve foreign exchange," he wrote, adding that this was "exactly what our government is trying to do."
"If economy is growing at 7.8% why is the PM asking us not to travel abroad, not to buy gold, not to have foreign weddings etc"
— Sridhar Vembu (@svembu) September 2, 2026
Let me explain: East Asian nations (Japan, Taiwan, South Korea and later China) all went through a phase of rapid GDP growth combined with the need to… https://t.co/1HdLAUDaej
Vembu's Explanation On Import Dependence
Vembu argued that India's rapid growth was itself increasing its reliance on imported energy and technology.
"The faster the economy grows, the greater the need for both energy and technology inputs," he said, noting that even India's surging exports depend on imported "precision machines, materials, CPUs, GPUs, advanced software."
He said catching up in these areas "takes time, often measured in decades," pointing to how long East Asian economies took to close the gap with the West while still working to conserve foreign exchange.
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A Fast-Growing Company Analogy
Vembu compared India's situation to that of a fast-growing company needing to conserve capital to fund its expansion.
"Our nation needs to conserve foreign exchange likewise," he wrote, adding that once India gained competence in advanced technologies and achieved energy independence through domestically developed renewable technology, it would "no longer need to conserve foreign exchange."
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