Page 30 - The Indian EYE 041726

BUSINESS & TRADE APRIL 17, 2026 | The Indian Eye 30

India Moves to Shield Economy

from Iran War Shock

New Delhi combines diplomacy, policy support and industry action to

contain fallout from West Asia conflict

OUR BUREAU costs surging sharply. “Many export-
ers had their cargo stuck at the load
New Delhi / Doha
port. Many were stuck in transit. And
ndia is mounting a coordinated many were stuck at the destination
response across government and ports,” said Dev Garg of the Indian
Iindustry to mitigate the economic Rice Exporters Federation.
impact of the ongoing West Asia con- Government support has played
flict involving Iran, as disruptions to a crucial role in stabilising exports.
energy supplies, trade routes and ex- Garg said expanded insurance cover-
port markets ripple through the econ- age and financial safeguards helped
omy. A mix of diplomatic outreach, maintain competitiveness. “The gov-
fiscal support and rapid business ad- ernment came out with a scheme
aptation is being deployed to cushion that in the existing policy 100 per
the shock, even as policymakers warn cent coverage will be made… this
of “unprecedented volatility” in the is an unprecedented move,” he said,
global environment. adding that exporters were also cov-
Former RBI Governor Shakti- ered up to `50 lakh for losses even
kanta Das has urged businesses to without insurance premiums. These
prepare for sustained uncertainty, interventions enabled India to retain
calling for a shift toward resilience market share against competitors de-
and long-term readiness. “At mo- Union Minister of Petroleum & Natural Gas Hardeep Singh Puri receives a warm welcome from spite volatile conditions.
ments like this, it would be prudent Ambassador of India to Qatar Vipul and officials of QatarEnergy upon his arrival on a two-day Despite the external shock, pol-
for Indian industry to build organisa- visit, at the airport, in Doha on Thursday. (@IndEmbDoha X/ANI Photo) icymakers point to strong macro-
tional resilience, strengthen balance economic fundamentals as a buffer.
sheets, build new supply chains, pro- Das highlighted stable growth, con-
tect jobs, re-skill manpower, diver- ommending continued engagement lished cross-functional “war rooms” trolled inflation and robust foreign
sify into new markets, especially for and contingency planning at both to manage supply shortages in real exchange reserves as key strengths,
exporters, and invest strategically for central and state levels. time. noting that India recorded aver-
future readiness,” Das said. His re- Alongside diplomacy, the gov- A key element of the mitigation age annual GDP growth of 7.8 per
marks mirror a broader strategy now ernment has rolled out a series of strategy is diversification. FICCI cent between 2021-22 and 2025-26.
visible across sectors — insulating measures to buffer businesses from has urged companies to reduce de- “Inflation control is important as
domestic growth while adapting to immediate shocks. These include pendence on specific geographies it boosts investor confidence and
prolonged geopolitical instability. the formation of empowered groups, by expanding supplier networks and protects the poor… low inflation
Energy security remains the most reduction in fuel excise duties, in- strengthening domestic sourcing ca- increases the real spending pow-
immediate concern. Petroleum Min- troduction of the RELIEF scheme, pabilities. Businesses are also being er of consumers,” he said. He also
ister Hardeep Singh Puri travelled to restoration of RoDTEP benefits encouraged to explore multi-fuel cited infrastructure investment, pol-
Doha this week as supply disruptions and duty rationalisation for special options, including biofuels and elec- icy stability and strong domestic de-
intensified following attacks on criti- economic zones. FICCI noted that trification, while increasing reliance mand — accounting for over 55 per
cal infrastructure. QatarEnergy halt- “early signs of stress are visible across on alternatives such as solar pow- cent of GDP — as critical supports.
ed liquefied natural gas production sectors,” calling for a coordinated er, piped natural gas and coke oven Even as risks persist, industry
after strikes hit its facilities, raising approach between industry and gov- gas. The report highlighted the need leaders see the crisis as an opportu-
concerns across global markets. In- ernment to address both short-term to accelerate the energy transition nity to accelerate reforms and reduce
dia, which imports a significant share disruptions and structural vulnera- through investments in renewable external vulnerabilities. FICCI said
of its natural gas from Qatar, faces bilities. Companies are being advised energy, green hydrogen and efficien- the situation could drive structural
direct exposure to such disruptions. to adopt scenario-based planning, cy technologies, noting that flexibility shifts, including diversification of en-
Officials indicated the visit would including developing a “Middle East in the energy mix would be critical to ergy sources, expansion of strategic
focus on strengthening energy coop- Crisis” version of budgets, securing reducing exposure to external shocks. reserves and development of resil-
eration and reviewing supply stability, additional funding lines and hedging India’s export sector, particular- ient trade infrastructure. A coordi-
underlining New Delhi’s reliance on currency risks. At the operational ly those tied to West Asian markets, nated approach, it said, is essential
diplomatic channels to secure long- level, firms are adjusting production has also been forced to adapt quick- “to navigate the current challeng-
term arrangements. Industry body schedules, consolidating shipments ly. The basmati rice industry initially es while further strengthening the
FICCI said “ensuring stable energy and coordinating with global ship- faced severe disruptions, with ship- foundation for a more resilient and
supplies remains a top priority,” rec- ping lines, while some have estab- ments stuck at ports and logistics self-reliant India.”

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