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    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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