New Delhi: Prime Minister Narendra Modi has said that the Centre has constituted seven empowered groups of officials and experts to assess the impact of the war in West Asia and take remedial measures across sectors.
The groups were formed on the lines of a similar exercise during Covid, Modi said on Tuesday while addressing the Rajya Sabha on the impact of the war on India. “These groups will work on issues such as supply chain, petrol, diesel, fertilizers, gas, inflation, among others.”
The government is constantly monitoring the situation and is working strategically to address the short-, medium-, and long-term effects of the crisis, the prime minister said.
Following strikes by the US and Israel, Iran the Strait of Hormuz, a chokepoint through which 20% of the world’s oil and gas passes, causing a supply squeeze and a spike in prices. For India, which imports about 85% of its total oil and gas requirements, the shortage of crude and gas threatens to impact everything from .
The empowered groups would look at strategic issues, including defence and external affairs; economy, finance and supply chain-related issues, including export and import; petroleum, liquefied natural gas (LNG), liquefied petroleum gas (LPG) and energy; fertilizer and other agricultural inputs; prices and supply of essential commodities; transport and logistics; information, communication and public engagement.
The convenor of the committee on strategic issues is Vikram Misri, secretary, ministry of external affairs; while Anuradha Thakur, secretary in department of economic affairs is the convenor for the committee on economy, finance and supply chain, according to an office memorandum notified by the cabinet secretariat and reviewed by Mint.
Neeraj Mittal, secretary, ministry of petroleum and natural gas, has been designated the convenor of the committee on petroleum and energy, while Nidhi Khare, secretary in the department of consumer affairs, will be the convenor on prices and supply of essential commodities.
The spokesperson for the cabinet secretariat did not immediately respond to queries emailed by Mint.
“These groups will identify issues and take immediate necessary steps to address the situation. They will also formulate plans, strategize operations and take all necessary steps for their effective and time-bound implementation, in their respective domains,” the office memorandum said.
The terms of reference of the empowered groups include assessing risks to energy supplies and pricing and take measures to mitigate supply disruptions; manage price volatility and ensure adequacy of strategic reserves; identifying alternative import sources to reduce dependency and improve resilience; and monitoring domestic availability and price stability of essential commodities including food items, fertilizers, fuels and other critical inputs, among others.
Push for piped gas
The Petroleum and Natural Gas Regulatory Board on Monday directed city gas distribution (CGD) entities to connect residential schools and colleges, hostels, community kitchens, anganwadi kitchens through piped natural gas within five days, wherever infrastructure is available in vicinity, said Sujata Sharma, joint secretary, marketing and oil refinery, ministry of petroleum and natural gas, while addressing the media on the fuel stock situation.
Referring to concerns of fuel shortage in Gujarat, she said there were some instances of panic buying at petrol pumps on Monday and assured that there is no shortage of transport fuels in the country.
Earlier, in his address to the Rajya Sabha, the prime minister also tried to allay concerns over crude oil stock.
“The current crisis has shaken the global economy. The damage already incurred in West Asia will take a significant amount of time for the world to recover from. We are working to ensure that there is minimum impact on India…Fortunately, the fundamentals of our economy remain strong, and the government is closely monitoring the evolving situation.”
PM assures adequate crude supply
While the Indian economy is resilient, Modi said that if the situation persists, it could have serious implications.
“I wish to assure this House and the nation that India possesses adequate crude oil storage and robust arrangements for continuous and uninterrupted supply. Our government remains committed to avoiding over-reliance on any single source of fuel. Additionally, we are promoting the use of piped natural gas (PNG) alongside liquefied petroleum gas to enhance the domestic gas supply,” he added.
The West Asia crisis is going to test the country and the cooperation of states is critical to pass this crisis, Modi said. “The government is vigilant, it is ready, and it is formulating its strategy and taking every decision with utmost seriousness. The welfare of the people of this country is paramount for us.”
Outlining the diversification of energy imports, from 27 countries earlier to 41 countries today for crude oil, LNG, and LPG, the prime minister said India has prioritized building crude oil reserves for precisely such times of crisis, with oil companies maintaining substantial stocks of petrol and diesel.
“Strategic petroleum reserves exceeding 5.3 million tonnes have been developed over the past eleven years, with work underway to establish reserves exceeding 6.5 million tonnes, alongside a significant enhancement of India’s refining capacity.”
He called upon state governments to ensure that India’s robust growth trajectory is maintained regardless of the scale of the crisis, and that every necessary step and every necessary reform is implemented with speed.
Chief economic adviser V. Anantha Nageswaran told a parliamentary panel last week that if crude prices remain at $130 a barrel for two to three quarters, GDP growth could be reduced by 100 basis points. India can sustain its growth momentum if prices are around $90 a barrel, he said. India’s GDP growth in FY26 is expected to be 7.6%.
Currently, the benchmark .
“With the combined efforts of all state governments and the central government, the country will be able to effectively confront this grave global crisis; we must carry forward the same ‘Team India’ spirit,” Modi said, citing the efforts of the Centre and states during the Covid-19 pandemic.