India is well-equipped to handle energy, trade disruptions amid Iran war: PM Modi

PM Modi assured that sufficient arrangements have been made to ensure fertiliser availability for the upcoming June-July sowing season.

Prime Minister Narendra Modi on Monday said India’s economic fundamentals remain strong, assuring that the country is well-equipped to handle disruptions in trade and energy supplies triggered by the ongoing West Asia conflict.

Addressing the Lok Sabha, PM Modi that India has adequate stocks of key resources, including petroleum, fertilisers and coal, even as the conflict, which began last month, continues to impact sectors such as air travel, shipping and gas supplies.

The situation has been further strained by the near-closure of the Strait of Hormuz, a crucial route that accounts for nearly 40% of India’s crude oil imports.

India currently holds over 5.3 million metric tonnes of petroleum in its strategic reserves, with additional storage capacity of 6.5 million metric tonnes under development, he said.

"The inherent strength of India's economic fundamentals has ... provided significant support to the nation during this period," Modi stated.

He also assured that sufficient arrangements have been made to ensure fertiliser availability for the upcoming June-July sowing season, along with adequate coal supplies to meet rising electricity demand amid soaring temperatures.

Despite rapidly expanding its renewable energy capacity, India continues to rely on coal for nearly three-fourths of its electricity generation. The economy, the world’s fastest-growing major economy and most populous nation, is estimated to expand by 7.6% in the fiscal year ending March 2026, according to the National Statistics Office. Growth is projected to moderate slightly to between 7% and 7.4% in FY27.

However, analysts have cautioned that a prolonged conflict in the Gulf region could weigh on India’s growth prospects in FY27, driven by higher energy costs and potential supply chain disruptions.

PM Modi also stressed the need to keep global shipping routes open and secure during a recent conversation with Iran’s President Masoud Pezeshkian on Saturday.

India has maintained a delicate diplomatic balance amid the conflict, given its longstanding cultural ties with Iran, strong strategic partnership with Israel, and close relations with Arab nations. New Delhi has consistently called for dialogue and diplomacy to resolve the crisis.