Prime Minister Narendra Modi is set to conduct a crucial review of the economic repercussions stemming from the ongoing conflict in West Asia, particularly the Iran war. The high-level meeting, scheduled upon his return to India from a five-nation foreign tour, will involve senior officials to assess the evolving situation and determine further measures to safeguard India's economic stability.
This review comes as the Indian government has already intensified its efforts to cushion the nation from potential impacts, including escalating oil prices, disruptions to global supply chains, and inflationary pressures. Sources indicate that the Prime Minister aims to examine comprehensive strategies to mitigate these challenges.
Government's Proactive Economic Safeguards
In anticipation of the crisis, the Centre had previously established a high-powered "informal group of ministers" (IGoM) in late March. This group, chaired by Defence Minister Rajnath Singh, is tasked with continuously monitoring the West Asia situation and recommending measures to protect the Indian economy. Key members of the IGoM include Union Ministers Amit Shah, Nirmala Sitharaman, and Hardeep Singh Puri.
The IGoM held its fifth meeting on May 11, where it took stock of the latest developments and discussed strategies to bolster India's readiness, ensuring minimal impact on its citizens. During this meeting, officials confirmed that India possesses robust reserves, including 60 days of crude oil, 60 days of natural gas, and 45 days of LPG rolling stock. Furthermore, the country's foreign exchange reserves stand at a comfortable $703 billion, providing a strong buffer against external shocks.
Mitigating Price Volatility for Citizens
Despite the significant global volatility and the substantial cost borne by the nation due to high international crude prices, India has managed to maintain stable petroleum prices domestically. Unlike many other countries where prices have surged by 30 to 70 percent, India's oil marketing companies have absorbed considerable losses, estimated at nearly Rs 1,000 crore per day, with under-recoveries approaching Rs 2 lakh crore in Q1 2026. This strategic absorption has prevented the burden of astronomical global prices from being passed directly to Indian citizens.
Beyond the immediate review, Prime Minister Modi is also slated to chair a key Council of Ministers meeting on Thursday. This broader discussion is expected to include updates from various Union ministries on governance, major policy decisions, and future action plans, with the West Asia crisis and its economic implications for India remaining a central point of discussion alongside public welfare reforms and sector-focused initiatives.