Prime Minister Narendra Modi on Sunday chaired a meeting of the Cabinet Committee on Security (CCS) to assess the impact of the ongoing West Asia conflict on India’s energy security, supply chains and broader economy, as disruptions in global trade routes intensify risks for import-dependent sectors.
“The situation and ongoing and proposed mitigating measures in the context of ongoing West Asia conflict” were reviewed, said the Prime Minister’s Office (PMO) in a statement, following a detailed presentation by the cabinet secretary on global developments and response strategies across ministries.
The review assumes urgency as disruptions in the Strait of Hormuz — a critical corridor handling nearly 20% of global petroleum flows and up to 80–85% of India’s LPG imports — have severely impacted tanker movement, raising concerns over fuel availability and price volatility.
Hormuz Bottleneck
The CCS assessed the expected impact across sectors, including petroleum, power, fertilisers, agriculture, MSMEs, exports, shipping, trade and finance, along with the overall macroeconomic situation.
The conflict is expected to have “significant short, medium and long-term impact on the global economy,” said the PMO, with its implications for India examined in detail.
A key focus of the meeting was ensuring the availability of essential commodities. A detailed assessment was carried out of “availability for critical needs of the common man, including food, energy and fuel security,” the PMO said, with short-, medium- and long-term measures discussed.
The government also reviewed fertiliser availability for the Kharif season, noting that existing stockpiles will ensure timely supply and food security, while alternative sourcing options are being explored. In the power sector, it was assessed that adequate coal stocks will ensure no shortage of electricity.
Diplomatic Sourcing
The Centre is also moving to diversify supply chains. “Several measures were discussed to diversify sources of imports” for key sectors such as chemicals, pharmaceuticals and petrochemicals, the PMO said in a statement, alongside efforts to develop new export destinations.
The Prime Minister directed the creation of coordination mechanisms, including a group of ministers and secretaries to work in a “whole of government approach,” the PMO said in a statement, and sectoral groups to engage with stakeholders.
He emphasised that “all efforts must be made to safeguard the citizens from the impact of this conflict… all arms of government should work together to ensure the least inconvenience to the citizens,” said the Prime Minister’s Office in a statement, while stressing coordination with states to prevent hoarding and black-marketing.
The review comes as India, the world’s second-largest LPG importer, meets over 60% of its LPG demand through imports, making it particularly vulnerable to disruptions in the Gulf region. To mitigate risks, the government has increased LPG allocations by 20% from March 23, taking total supply to 50% of pre-crisis levels, with priority to essential sectors.
Officials have maintained that there is no immediate shortage of LPG or petroleum products, urging citizens to avoid panic buying, even as supply chains remain under pressure.
At the same time, global price pressures are beginning to reflect domestically. Oil marketing companies have raised premium petrol prices by `2.09–2.35 per litre, while keeping regular petrol and diesel prices unchanged to shield consumers.
The prime minister had earlier termed the situation a “worldwide energy crisis”, noting that “continuous efforts are also underway to determine how we can overcome the disruptions that have occurred in the supply chain.”
India has also stepped up diplomatic outreach, with Modi engaging leaders from Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, Israel and Iran to ensure continuity of supply chains. Following his recent conversation with Iranian President Masoud Pezeshkian, the prime said, “Condemned attacks on critical infrastructure in the region, which threaten regional stability and disrupt global supply chains,” while reiterating the need to keep shipping lanes open.
With tanker movements through Hormuz severely affected and only limited vessels allowed passage, the government is closely monitoring the situation and coordinating across ministries to ensure energy security and minimise disruption.