Government Measures to Stabilize Economy Amid West Asia Conflict

Government Takes Measures to Address West Asia Crisis​

New Delhi, March 30 – The government is implementing a series of measures to mitigate external risks, support the balance of payments, and maintain macroeconomic stability in response to the ongoing West Asia crisis, according to Minister of State for Finance Pankaj Chaudhary.

Strategic Group Formation and Monitoring​

Seven new empowered groups have been constituted to address key areas including supply chains, petrol-diesel, fertilisers, gas, and inflation. An Inter-Ministerial Group on supply chain resilience has also been operationalized to monitor the situation and coordinate facilitation measures related to exports and imports.

Assessing Economic Impact​

Responding to questions regarding potential impacts on GDP growth and foreign investment, Minister Chaudhary stated that the overall effect of the conflict will depend on the evolving global situation, including the conflict’s duration and intensity.

Government’s Response​

The government has taken several steps to manage external sector volatility and support the balance of payments. These include:

• Diversifying crude oil/LNG/LPG import sources.
• Enhancing LPG (liquefied petroleum gas) production.
• Rationalising natural gas allocation to priority sectors.
• Encouraging LPG-to-PNG (pipeline natural gas) conversions where systems are in place.
• Curbing hoarding through enforcement actions.

Supply Chain Support​

Supply chains are being closely monitored through trade facilitation measures and coordinated inter-ministerial action. These initiatives are designed to mitigate external risks, support the balance of payments, and maintain macroeconomic stability.

Global crude prices have risen approximately 50 per cent since the US and Israel launched military strikes against Iran on February 28, triggering sweeping retaliation from Tehran.