Government sources clarified no mandatory WFH advisory is planned for India’s IT industry.
PM Modi’s austerity appeal focused on conserving fuel and foreign exchange amid tensions.
Rising oil prices and West Asia tensions have intensified concerns over economic pressures.
Clarifying the remarks of Prime Minister Narendra Modi on May 10 during a rally in Hyderabad at the inauguration speech at the Sardardham Hostel in Vadodara, Gujarat, the government sources told CNBC-TV18 that there is currently no proposal to issue any advisory related to work-from-home for the IT industry.
The CNBC-TV18 report clarified that the Prime Minister’s remarks were only an appeal and no mandatory restrictions were under consideration to issue any advisory or directive related to work-from-home for the IT industry.
1 May 2026
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According to the report, the IT industry is already working in remote and hybrid formats on the basis of their operational requirements, which has reduced the need for any kind of formal government intervention.
No Restrictions on Imports
It was further clarified that no restrictions are being planned on electronics imports despite the government’s broader push for austerity and import discipline.
Officials said electronics imports continue to serve productive economic purposes, including manufacturing, exports and digital infrastructure expansion.
Why Austerity Measures Were Discussed
PM Modi called the public belt-tightening an act of “economic patriotism”. He equated the current resource crunch to war-time emergencies and the Covid-19 pandemic and asked citizens to save foreign exchange by not buying gold, cutting down on petrol and diesel usage, using metro, working from home, conducting virtual meetings, deferring foreign holidays and destination weddings for a year and choosing 'Made in India' products.
According to The Times of India, after PM’s austerity push, several BJP-led states and ministers began reducing official convoy sizes and fuel use. Reuters reported that PM Modi himself cut the size of his motorcade and pushed for more electric vehicles in official convoys.
The government also started discussing emergency measures to protect foreign exchange reserves, including possible curbs on non-essential imports.
Economic Concerns Grow Sharper
As per a report published by The Economic Times on May 12, Business tycoon Uday Kotak warned Indians amid rising tensions in West Asia that the real economic pain from the Iran war is yet to hit consumers.
Speaking at the CII Annual Business Summit 2026, Kotak cautioned that soaring energy prices could soon trigger a major financial shock for households and businesses already dealing with stretched budgets.
Opposition parties too criticised the move, saying the government was shifting the burden of economic stress onto citizens.
