Following a comprehensive review chaired by Prime Minister Narendra Modi under the Cabinet Committee on Security, the government evaluated the far-reaching impact of the ongoing Middle East conflict on critical sectors such as agriculture, fertilisers, energy, electricity generation, shipping, and supply chains, prompting a coordinated national response.
In this context, the Centre has established an Inter-Ministerial Group to closely monitor evolving developments arising from the crisis and to ensure timely intervention where required. The group will function under the leadership of Defence Minister Rajnath Singh and includes several key members of the Union Cabinet, such as the Home Minister, Finance Minister, and Petroleum Minister, reflecting the seriousness and multi-sectoral nature of the situation.
The primary responsibility of this group is to assess risks across various sectors of the economy and to coordinate policy responses as disruptions in global trade routes and energy flows continue to unfold. Officials indicated that both short-term contingencies and long-term strategies are being actively considered to minimise the potential impact on India’s economic stability.
During the high-level review, particular attention was given to maintaining uninterrupted supplies of essential commodities. Discussions focused on ensuring adequate availability of fertilisers for the upcoming agricultural season, diversifying sources of imports for petrochemicals and related products, and identifying new export opportunities to offset disruptions in traditional trade channels.
The status of coal reserves at power plants was also examined, with authorities expressing confidence that there is no immediate threat to the electricity supply. Parallel to these efforts, the government has introduced fiscal measures aimed at stabilising fuel prices in response to volatility in global markets.
These measures include reductions in excise duties on petrol and diesel, along with the imposition of a windfall tax on diesel exports to manage domestic supply. Adjustments have also been made in taxation related to aviation fuel, with safeguards in place to prevent excessive burden on the aviation sector.
Amid public concern over possible shortages, the Ministry of Petroleum and Natural Gas has clarified that fuel supplies remain stable, with retail outlets functioning normally across the country and sufficient stock available. Citizens have been advised against panic buying.
The broader global situation remains strained due to escalating tensions involving major powers in the region, particularly in light of disruptions in key maritime routes such as the Strait of Hormuz, through which a significant portion of global oil and gas shipments pass. India, which relies on this corridor for a notable share of its crude imports, is actively working to manage potential risks.
Officials have reiterated that port operations remain unaffected and that Indian vessels and crew operating in the region are safe. The government has emphasised that it will continue to monitor the situation closely as the conflict persists, ensuring that necessary steps are taken to safeguard national interests and economic resilience.
