Indian businesses are taking a cautious approach to spending and work-from-home policies following Prime Minister Narendra Modi’s appeal to conserve foreign exchange and fuel amid rising tensions in the Middle East. Industry leaders are urging domestic investment and reviewing strategies to minimize risks.

The call by the PM to cut back on gold buying and foreign travel has already started to bear fruit, with jewellery stocks witnessing a decline in prices. However, the government has denied plans for increased import duties on gold and silver, stating that it will maintain its current policies.

Companies such as Tata Consultancy Services (TCS) and Infosys have already started to adopt work-from-home policies to reduce expenses. TCS CEO Rajesh Gopalan said in a statement that the company is reviewing its travel policies and exploring ways to minimize foreign exchange expenditure.

India Inc is also closely monitoring the situation and is adapting its strategies accordingly. The Confederation of Indian Industry (CII) has urged the government to provide guidance on how businesses can reduce expenses without compromising growth.

The PM’s appeal comes at a time when tensions between India and Pakistan are escalating, with several incidents reported along the Line of Control in Kashmir. The situation is also being closely watched by investors, who are wary of potential disruptions to global markets.

Gold prices have fallen sharply in recent weeks, but analysts say that this could be short-lived if tensions continue to escalate. ‘If the situation in West Asia deteriorates further, gold prices are likely to rise again,’ said a senior analyst at a leading financial institution.