Parth Nadpara
NEW DELHI: The Government has flagged rising economic risks from the escalating West Asia conflict, with Prime Minister Narendra Modi warning in Parliament that prolonged hostilities could stoke in flation, disrupt energy supplies and test India’s economic resilience.
With crude prices already volatile and supply chains under strain, policy makers are closely tracking India’s en ergy reserves position, which officials say remains adequate for now but vul nerable if disruptions persist.
A defining moment Describing the conflict as a “defining moment,” PM Modi said its ripple effects were being felt across trade, energy and financial markets. “This is not a distant conflict. Its consequences are global, and India cannot remain untouched,” he said, cautioning that inflationary pres sures, particularly in fuel and food, could intensify if the war drags on.
The crisis has also disrupted key mari time routes, especially through the Strait of Hormuz, raising concerns over the steady flow of crude oil, gas and fertilisers.
Human dimension Highlighting the human dimension, the Prime Minister noted that nearly one crore Indians live and work in the Gulf region, making their safety a pri ority. He also referred to Indian crew members stranded aboard ships in conflict zones.
Since the outbreak of hostilities, over 3.75 lakh Indians have been evacuated, including more than 1,000 from Iran, among them hundreds of students.
Government officials maintain that stra tegic petroleum reserves and diversified sourcing provide a near-term buffer. How ever, energy market watchers warn that the cushion is not indefinite. An oil market analysis firm has cautioned that markets may be underestimating the risks of dis ruption in transit routes such as the Strait of Hormuz, describing the potential fallout as “absolutely catastrophic”.
PM Modi said India has strength ened its preparedness over the past decade by diversifying energy imports and building strategic reserves ex ceeding 53 lakh metric tonnes, while expanding refining capacity. He also highlighted efforts to boost renewable energy, domestic fuel production and indigenous shipping capacity to reduce import dependence.
This is not a distant conflict. Its consequences are global, and India cannot remain untouched Prime Minister Narendra Modi
Emphasising a “Team India” approach, he called for close coordination between the Centre and the states to navigate, what he described as, a prolonged and complex global crisis.
