From overseas holidays and foreign degrees to AI subscriptions and premium gadgets, India's growing middle class is increasingly spending on products and services linked to foreign currencies. As aspirations become more global, economists say Indian households are also becoming more exposed to currency movements, raising an important question: Is the country's consumption story quietly becoming more dollar-intensive?
When Prime Minister Narendra Modi in May 2026 urged Indians to avoid non-essential foreign travel, postpone discretionary gold purchases for at least a year to help conserve foreign exchange amid disruptions caused by the West Asia conflict, the appeal reflected more than a temporary response to geopolitical uncertainty. It underscored a structural shift underway in India's consumption economy.
