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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.

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