Modi's Confidence in India's Economic Strength#
Prime Minister Narendra Modi addressed parliament on Monday, emphasizing that India's economic fundamentals remain strong. He reassured lawmakers that the country has sufficient supplies of essential resources like petroleum, fertilizers, and coal to navigate the challenges posed by the ongoing U.S.-Israeli war on Iran.
Impact of the Conflict#
The conflict, which began last month, has had repercussions on various sectors, including air travel, shipping, and gas supplies. A significant concern is the near-closure of the Strait of Hormuz, a crucial waterway that accounts for 40% of India's crude oil imports. Modi highlighted that despite these challenges, India is well-prepared to manage potential disruptions.
Strategic Reserves and Supply Arrangements#
In his address, Modi stated that India currently holds strategic petroleum reserves exceeding 5.3 million metric tons. Additionally, plans are in place to establish further reserves of 6.5 million metric tons. He also assured that adequate arrangements are being made for fertilizer supplies ahead of the summer sowing season, which starts in June-July, and for coal to meet the rising electricity demand as temperatures rise.
Diplomatic Efforts and Economic Growth#
Modi recently spoke with Iran’s President Masoud Pezeshkian, stressing the necessity of keeping shipping lanes open and secure during the ongoing conflict. India has a long history of cultural ties with Iran, strategic relations with Israel, and strong friendships with Arab nations. The Prime Minister has consistently advocated for dialogue and diplomacy to resolve the situation. According to the National Statistics Office, India's economy is projected to grow by 7.6% in the fiscal year ending March 2026, with growth estimates between 7% and 7.4% for FY27.