Key insights
- Indian PM Modi addressed parliament, stating India's economy is strong and prepared for disruptions from the U.S.-Israeli war on Iran, particularly regarding oil and fertilizer supplies. While the conflict poses risks to global supply chains and potentially inflation, India's preparedness mitigates immediate negative impacts on U.S. equities. However, escalating geopolitical tensions could indirectly affect market sentiment.
Investing.com -- Prime Minister Narendra Modi told parliament on Monday that India’s economic fundamentals remain strong and the country has adequate supplies of petroleum, fertilizers and coal to manage disruptions from the U.S.-Israeli war on Iran.
The conflict, which started last month, has affected sectors including air travel, shipping and gas supplies, particularly through the near-closure of the Strait of Hormuz. The strait serves as a route for 40% of India’s crude oil imports.
Modi said India has sufficient petroleum availability, with strategic reserves currently exceeding 5.3 million metric tons. Work is underway to create additional reserves of 6.5 million metric tons, he told parliament’s lower house on Monday.
The prime minister said adequate arrangements have been made for fertilizer supply for the summer sowing season starting in June-July, and for coal to meet rising electricity demand as temperatures increase.
Modi spoke with Iran’s President Masoud Pezeshkian on Saturday, emphasizing the importance of keeping shipping lanes open and secure during the war.
India maintains historical cultural ties with Iran, strategic relations with Israel, and close friendships with Arab countries. The country has repeatedly called for dialogue and diplomacy to resolve the conflict.
The National Statistics Office said last month that the Indian economy is estimated to grow by 7.6% in the fiscal year ending March 2026. Growth is projected between 7% and 7.4% in FY27.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.