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Modi calls for austerity to ease India's oil crisis
Indian Prime Minister Narendra Modi has asked citizens to work from home, reduce gold purchases, and limit overseas travel as the country grapples with soaring energy costs triggered by the Middle East conflict. Speaking in Hyderabad on Sunday, Modi framed the measures as acts of patriotism to conserve foreign exchange and curb fuel consumption.
Why the appeal matters
India imports 90% of its crude oil, and the shutdown of the Strait of Hormuz-a critical Gulf shipping lane-for over two and a half months has sent import bills surging by billions of dollars. Analysts called Modi's remarks the most severe economic warning issued by the government to date.
"Patriotism isn't just about defending the nation at the border. Today, it means living responsibly and fulfilling our duties in daily life," Modi said.
Specific measures proposed
Modi urged Indians to use public transport, carpool, and halve fertilizer use in agriculture. He also emphasized the need to save foreign currency, warning that prolonged disruptions could strain the economy further.
His comments rattled markets on Monday, with the benchmark Sensex index plunging over 1,000 points in early trading amid fears of extended economic instability.
Economic fallout deepens
While India has avoided raising fuel prices at pumps so far, the crisis has hit industries hard. Glass, plastic, and tile manufacturers face job losses, while dwindling fertilizer supplies threaten lower farm output and higher food prices.
The Indian rupee has also plummeted to record lows, increasing import costs and fueling inflation. Analysts suggest the government may soon introduce formal energy-use directives or raise fuel prices.
Opposition slams government response
Opposition leaders criticized Modi's appeal as evidence of poor planning. Congress party leader Rahul Gandhi accused the government of shifting blame to citizens, calling the suggestions "proof of failure" in a post on X.
Global energy shockwaves
The conflict in Iran and the blockade of the Strait of Hormuz have disrupted oil supplies worldwide, with the International Energy Agency labeling it the "largest supply disruption in history."
Other Asian nations have taken drastic steps: China halted fuel exports, Australia slashed public transport fares, and the Philippines declared a national emergency, introducing subsidies and a four-day workweek for civil servants. Sri Lanka imposed fuel rationing and temporarily closed schools and government offices one day a week.
