India prepares action plan to protect economy amid Middle East conflict
India economy action plan Middle East crisis, Modi government strategy oil gas supply, India energy security plan news
New Delhi (The Uttam Hindu): The central government has gone on high alert amid rising tensions between Iran and Israel and the deepening crisis in the Middle East. A high-level meeting of the Cabinet Committee on Security, chaired by Prime Minister Narendra Modi, was held on Sunday night to review India’s energy security, supply chains, and economic stability.
After the meeting, the government assured that oil and gas supply in the country will not be disrupted under any circumstances. It also stated that there is no risk of a power crisis due to sufficient coal reserves. The government’s clear focus is on maintaining economic stability and controlling inflation.
Strategic plan for oil and gas
A detailed strategy has been prepared to ensure uninterrupted availability of petrol, diesel, and gas. India imports nearly 85% of its crude oil, 50% of natural gas, and 60% of LPG, making it vulnerable to disruptions in the Middle East.
To tackle this, the government has begun working on short-term, medium-term, and long-term strategies to maintain smooth supply of essential commodities.
Review of 11 key sectors
The meeting assessed the potential impact on 11 major sectors, including agriculture, fertilizers, food security, petroleum, power, MSMEs, exports, shipping, trade, finance, and supply chains.
The government has decided to diversify import sources for sectors such as chemicals, pharmaceuticals, and petrochemicals to reduce dependence on specific regions.
Strong position in power and coal
The government clarified that all power plants in the country have adequate coal stock, ensuring uninterrupted electricity supply. This is expected to provide relief to industries and consumers alike.
Special focus on farmers
Keeping the upcoming Kharif season in mind, the government has taken steps to ensure adequate availability of fertilizers. Buffer stock levels have been reviewed, and alternative import sources are being explored.
The government has assured that there will be no shortage of fertilizers, safeguarding the country’s food security.
Experts believe that this proactive strategy will help India withstand economic and supply shocks amid the ongoing Middle East crisis.