Modi Targets Gold, Fuel in Austerity Push

India is tightening controls on foreign outflows as the Iran war triggers an energy shock, pushing fuel prices higher and adding pressure to the rupee, which has hit a record low against the dollar. The government is also imposing tougher curbs on gold and silver imports, signaling broader efforts to defend external balances amid rising import costs and FX stress. The developments are likely to weigh on emerging market sentiment and Indian risk assets.

Analysis

India is tightening controls on foreign outflows as the Iran war triggers an energy shock, pushing fuel prices higher and adding pressure to the rupee, which has hit a record low against the dollar. The government is also imposing tougher curbs on gold and silver imports, signaling broader efforts to defend external balances amid rising import costs and FX stress. The developments are likely to weigh on emerging market sentiment and Indian risk assets.