India, May 13 -- Prime Minister Modi recently urged citizens and institutions to conserve fuel, adopt work-from-home mode where feasible, and reduce avoidable foreign-exchange outflows - an appeal that has since then been widely reported as PM calling for "austerity".

While austerity refers to difficult economic conditions created by government policies aimed at cutting public spending, PM Modi's appeal on Sunday at public event in Hyderabad did not convey that Centre is cutting capital expenditure, welfare spending, or subsidies.

Government sources said describing PM Modi's recent public appeal for conservation and efficient spending as "austerity measures" is incorrect, arguing that the characterisation is economically misleading.

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