New Delhi, May 12 -- Prime Minister Narendra Modi's call for austerity measures should be viewed as "signalling before actual measures" amid rising external vulnerabilities linked to the ongoing West Asia conflict, according to a report by JM Financial Institutional Securities.

In the report the brokerage said the Prime Minister's remarks urging citizens to conserve foreign exchange reserves by reducing gold imports, fuel and fertiliser consumption, and non-essential international travel were targeted and may precede gradual policy action if geopolitical tensions persist.

"the PM's speech was targeted and should be considered as a precursor to actual austerity measures in a gradual manner if the conflict in West Asia lingers," the repor...