Domestic Demand Gains Fresh Focus
New Delhi, September 4, 2026: Prime Minister Narendra Modi has called for stronger domestic consumption, self-reliance and greater preference for Indian products following India’s 7.8 per cent real GDP growth in the first quarter of FY2026–27.
In a social media message, Modi highlighted India’s economic performance amid global uncertainty, including geopolitical tensions and disruptions to international supply chains.
The Prime Minister said sustaining the country’s growth momentum would require continued focus on self-reliance, Swadeshi and the Vocal for Local approach.
He also urged citizens to reconsider non-essential purchases of gold and overseas travel, saying that greater domestic consumption could support Indian businesses while helping conserve foreign exchange.
Gold imports contribute significantly to India’s import bill and can increase foreign exchange outflows. Similarly, spending on overseas travel results in foreign exchange expenditure outside the country, while domestic tourism can retain a larger share of that spending within India’s economy.
Modi also encouraged Indians to consider holding wedding ceremonies within the country. Such spending can support a wide range of domestic sectors, including hospitality, tourism, food, retail, transportation and other services.
The push for stronger domestic demand comes against the backdrop of continued global economic uncertainty. Geopolitical tensions in Europe and West Asia have the potential to affect energy markets, supply chains, crude oil prices and consumer demand in major international markets.
India’s large domestic consumer base remains an important source of economic activity. Greater demand for domestically produced goods can support manufacturing, employment, local businesses and value addition while reducing dependence on imports.
The government has continued to promote domestic manufacturing and self-reliance through policies aimed at increasing local production, strengthening supply chains and reducing import dependence.
India’s 7.8 per cent real GDP growth during April-June 2026 provides fresh momentum to these efforts, with domestic economic activity remaining a key driver of overall growth.
