Zoho Co-Founder Highlights Need for Foreign Exchange Conservation Amid Economic Growth

Sridhar Vembu, Co-founder of Zoho, highlights the necessity of conserving foreign exchange in light of India's economic growth. He draws comparisons with East Asian economies that successfully balanced rapid GDP expansion with foreign-exchange conservation. Vembu questions the rationale behind limiting foreign travel and gold purchases, emphasizing the growing demand for imports as the economy accelerates. He believes that achieving energy independence and technological competence will eventually eliminate the need for such conservation measures. This insightful perspective sheds light on the challenges and strategies facing India's economy today.

By Narendra Chaudhary Sep 2, 2026, 14:55 IST

Economic Insights from Zoho's Chief Scientist

File image of PM Modi(Photo: @NalinisKitchen/X)

New Delhi, Sep 2: Sridhar Vembu, the Chief Scientist and Co-founder of Zoho, expressed on Wednesday that Prime Minister Narendra Modi's recent suggestions to limit foreign travel, gold acquisitions, and extravagant weddings are aimed at preserving foreign exchange, which is crucial given India's reliance on imports during its rapid economic expansion.

Vembu compared India's situation to that of East Asian nations, which successfully combined swift GDP growth with strategic foreign-exchange conservation, indicating that India is following a similar trajectory.

In a post on social media, he questioned, “If the economy is expanding at 7.8 percent, why is the PM urging us to refrain from traveling abroad, purchasing gold, or hosting foreign weddings?”

He pointed out that as India's economy accelerates, the demand for imported energy and advanced technological resources also rises.

“Indeed, the faster the economy grows, the more we require energy and technology inputs,” he noted, emphasizing the increasing need for foreign exchange to fund precision machinery, materials, CPUs, GPUs, and sophisticated software.

Vembu acknowledged that while India's economy is performing well, it still relies heavily on imports in critical sectors, necessitating an increase in exports to balance this dependence.

“Catching up in these areas is a lengthy process, often spanning decades. We have made a commendable start, but time is essential. Consider how long it took East Asia to reach parity with the West. Their economies thrived even as they diligently worked to conserve foreign exchange,” he remarked.

The Zoho co-founder concluded that the government's strategy includes curbing unnecessary foreign travel and gold purchases to achieve these goals.

“Once we master advanced technologies and attain energy independence through renewable resources that we develop, we will no longer need to conserve foreign exchange,” he added.