Basic HTML Version

|  | Table of Contents |  | View Full Version

Page 9 - The Indian EYE 051526
P. 9

    EYE ON INDIA                                                              MAY 15, 2026     |  The Indian Eye                    9

                                 From Fuel to Kitchen:

                How the Iran War Is Dragging

            India Into an Economic Squeeze

               Rising oil prices, import pressures and supply chain disruptions from the Iran-US conflict are
                  exposing India’s economic vulnerabilities and forcing calls for austerity and self-reliance.

            OUR BUREAU                                                                                            shocks despite repeated global crises
                                                                                                                  in  recent  years,  including  the  pan-
            NEW DELHI
                                                                                                                  demic,  the  Russia-Ukraine  war  and
                  he escalating Iran-US conflict                                                                  now tensions involving Iran.
                  is  no  longer  a  distant  geopo-                                                                  Modi’s  speech  itself  hinted  at
            Tlitical crisis for India. It is be-                                                                  those vulnerabilities. His appeal for
            ginning to affect fuel prices, foreign                                                                metro  usage,  car-pooling,  railway
            exchange  reserves,  food  costs  and                                                                 freight transport and electric vehicles
            public  anxiety,  forcing  the  govern-                                                               resembled an economic conservation
            ment  to  push  economic  restraint                                                                   strategy designed to reduce pressure
            while the opposition warns of a loom-                                                                 on imported fuel consumption.
            ing economic shock.                                                                                       “He  urged  citizens  to  reduce
                Prime Minister Narendra Modi                                                                      petrol  and  diesel  consumption  by
            on Sunday framed the global turmoil                                                                   using the metro and public transport
            as a test of national responsibility, urg-                                                            wherever available,” according to the
            ing Indians to reduce consumption of                                                                  official  statement  accompanying  his
            imported goods such as edible oil and                                                                 remarks.
            fuel in order to protect the economy                                                                      Such appeals underline a deeper
            from  mounting  external  pressures.  Aam Aadmi Party (AAP) Trade Wing leaders and workers stage a protest against the rising   reality: India’s growth story remains
                Speaking   in   Secunderabad,   price of commercial LPG and other commodities in Amritsar  (ANI Photo/Raminder Pal Singh)  tightly linked to imported energy.
            Modi argued that patriotism in mod-                                                                       For India, this comes at a difficult
            ern  times  extends  beyond  military   He also called for reducing the   dian  economy,  increasing  pressure   time. The economy is already dealing
            sacrifice and now includes responsi-  use  of  chemical  fertilisers  and  pro-  on  transportation,  agriculture  and   with inflation concerns, uneven con-
            ble economic behaviour.           moting natural farming to lower im-  household budgets.             sumption recovery and global invest-
                “Patriotism is not only about the   port dependence. “We import chem-  The  opposition  Congress  party   ment uncertainty. Any sustained rise
            willingness  to  sacrifice  one’s  life  on   ical fertilisers in large quantities from   has accused the government of failing   in crude prices could complicate fis-
            the border,” the Prime Minister said.   abroad. We should reduce our con-  to prepare adequately for the crisis.  cal planning and reduce the govern-
            “In these times, it is about living re-  sumption  of  chemical  fertilisers  by   Congress General Secretary KC   ment’s  ability  to  maintain  subsidies
            sponsibly and fulfilling our duties to   half and move towards natural farm-  Venugopal  launched  a  sharp  attack   and welfare spending.
            the nation in our daily lives.”   ing,” Modi said.                  on  the  Modi  government,  claiming   At  the  same  time,  the  political
                His  remarks  reflected  growing   The message was unmistakable:   there  had  been  “gross  mismanage-  messaging  around  “economic  patri-
            concern within the government about   the government is preparing the pub-  ment”  of  India’s  energy  security   otism” signals an important shift in
            the economic fallout of the Iran war,   lic for economic pain linked to global   during  the  three  months  since  the   the government’s public communica-
            especially  for  an  import-dependent   instability.                Iran-US war escalated.            tion. Modi is increasingly presenting
            economy  like  India.  As  one  of  the   The  Iran  conflict  has  intensi-  “It  is  shameless,  reckless  and   economic discipline — from reduced
            world’s largest importers of crude oil   fied  concerns  over  energy  security   downright  immoral  that  the  PM  is   fuel use to lower edible oil consump-
            and  fertilisers,  India  remains  high-  across  Asia.  Oil  prices  remain  vol-  pushing  the  common  citizen  into   tion — as a national duty tied to resil-
            ly vulnerable to disruptions in West   atile  amid  fears  of  supply  disrup-  inconvenience,  instead  of  building   ience and self-reliance.
            Asian energy markets.             tions  and  uncertainty  surrounding   contingencies  to  ensure  our  econo-  That approach may help mobil-
                The  Prime  Minister  urged  cit-  shipping routes in West Asia. Rising   my is unaffected by this global crisis,”   ise public support, but it also reveals
            izens to cut edible oil consumption,   crude  prices  directly  impact  India’s   Venugopal wrote on X.  the seriousness of the challenge.
            saying  India  spends  large  amounts   inflation, current account deficit and   He  accused  the  government  of   The Iran war is not being fought
            of  foreign  currency  on  imports.  “If   currency stability because the coun-  failing  to  create  sufficient  fuel  re-  on Indian soil, yet its consequences are
            every household reduces the use of   try imports nearly 85 per cent of its   serves and prioritising “elections and   already being felt in Indian kitchens,
            edible  oil,  it  is  a  huge  contribution   crude oil requirements.  petty  politics”  over  economic  pre-  fuel stations and farms. For millions
            to patriotism. This will improve the   Beyond  oil,  the  conflict  is  also   paredness.             of  ordinary  Indians,  the  conflict  is
            health  of  the  national  treasury  and   affecting global supply chains, freight   The  criticism  reflects  a  wider   becoming another reminder that in a
            the health of every family member,”   costs  and  fertiliser  markets.  This   debate over whether India has done   globalised economy, distant wars can
            he said.                          creates a ripple effect across the In-  enough to shield itself from external   quickly turn into domestic hardships.

                                                                   www.TheIndianEYE.com

| 4 5 6 7 8 9 10 11 12 13 14 |