West Asia And The Gulf

West Asia conflict highlights need for India to build natural gas reserves

Rising import dependence and supply disruptions amid West Asia tensions underscore the urgency for India to build strategic natural gas reserves and strengthen LNG storage capacity

Prioritise energy security to sustain growth momentum: RBI MPC member

The ongoing West Asia conflict has highlighted India's structural vulnerability to energy shocks, reinforcing the need to reduce dependence on imported crude and accelerate efforts to strengthen energy security, according to an external member of the RBI's rate-setting panel. Nagesh Kumar, who is the director of the Institute for Studies in Industrial Development and also a part of the Monetary Policy Committee, said the Indian approach needs to focus both on stepping up oil exploration domestically and hastening the transition to alternative sources. "The high dependence on imported crude makes the Indian economy highly vulnerable to volatility in the hydrocarbons market. While India's macroeconomic fundamentals remain resilient, and the Indian economy will continue to remain the fastest growing major economy with a growth rate of nearly 7 per cent in 2026-27, it is time to prioritise energy security and resilience for sustaining the accelerating economic growth trajectory," Kumar .

Geopolitical events rarely cause lasting damage to growth: Radhakrishnan

Near-term earnings may face pressure from geopolitical tensions, but improved valuations and strong fundamentals keep India's long-term market outlook intact

EAC-PM calls for mapping economic vulnerabilities in food, other areas

India must map and monitor key economic vulnerabilities, particularly in areas such as energy, food, fertilisers, metals, and critical minerals, and proactively address both supply disruptions and price volatility to mitigate the impact of future West Asia-like crisis, a top government official said on Monday. Economic Advisory Council to the Prime Minister (EAC-PM) Chairman S Mahendra Dev in an interview with PTI further said the ongoing West Asia conflict highlights the need for a forward-looking approach to risk management. "India must map and monitor key economic vulnerabilities, particularly in areas such as energy, food, fertilisers, metals and critical minerals, and proactively address both supply disruptions and price volatility," Dev said. He said this calls for a substantial strengthening of physical buffers, including an expansion of strategic petroleum reserves and the creation of stockpiles for essential commodities, going beyond the conventional reliance on foreign ...

CEA sees West Asia conflict widening India's CAD above 2%, urges investment

The CEA argued that India's substantial refining capacity significantly mitigates the challenges of its high crude oil import dependence

India should build strategic buffers for energy shock: CEA Nageswaran

Chief Economic Advisor V Anantha Nageswaran on Saturday said India needs to create strategic buffers in the face of the "most difficult" energy shock that the country is facing amid the West Asia crisis. Nageswaran also said the rising prices of fertiliser and petroleum products globally due to the crisis will make it challenging to achieve the 4.3 per cent fiscal deficit target for the current fiscal, while below normal monsoon and pass-through of higher energy prices could lead to "potential inflation spike". He also said India has employment challenge emanating from AI, and there is a need to ensure that IT sector becomes more competitive and not lose jobs to AI, and instead create jobs that use AI within the IT sector or in other services. Speaking at the ICPP Growth Conference organised by the Ashoka University, Nageswaran said the current account deficit (CAD) in the current fiscal could rise to over 2 per cent of GDP, from less than 1 per cent in FY'26. "The ... priority for

India must turn crises into opportunities, boost supply chains: Nadda

Union Minister JP Nadda on Saturday said India must convert prevailing global uncertainties into opportunities to build domestic strength, calling for higher manufacturing capacity, resilience and self-reliance to achieve the goal of a "Viksit Bharat" by 2047. Addressing the valedictory function of the two-day Vibrant Gujarat Regional Conference for south Gujarat, Nadda said recent global developments underline the need to reduce strategic dependencies and strengthen supply chains. "The recent global uncertainty is an indication that we must turn crises into opportunities. We must give maximum attention to our manufacturing sectors through regional conferences," he said. The Union health minister said economic strength is not just about growth, but also about resilience, self-reliance and strategic autonomy. India must convert global uncertainty into domestic strength, and "build and innovate more within the country, and reduce critical vulnerabilities," he said. Nadda noted that

Best of BS Opinion: India feels diplomatic squeeze from W. Asia conflict

From Iran diplomacy and artificial intelligence risks to Great Nicobar strategy and Pakistan policy, today's Best of BS Opinion highlights key strategic and economic debates shaping India's outlook

Best of BS Opinion: FinMin offers sobering view of macroeconomic risks

From rising oil-linked risks and services data gaps to gold loan expansion and global capital flows, here are the key insights from Business Standard's Opinion page

Policy prescription: MoF's economic review presents a realistic assessment

One clear message from the West Asia conflict is the need to build buffers of key inputs, and this should not be limited to oil and gas

Mojtaba Khamenei says new phase ahead for Gulf, Strait of Hormuz after war

Iran's Supreme Leader signals a 'new phase' in the Gulf, raising concerns over Strait of Hormuz security and global oil supply disruptions

Declining influence: UAE exit signals Opec's waning grip on oil prices

The UAE's exit has raised questions about the future of Opec and its ability to influence global oil prices

ONGC hits 52-wk high, Oil India up 4%; what's driving upstream oil stocks?

ONGC and Oil India are key beneficiaries if Brent price remains elevated above USD 70/bbl as their CMP is discounting ~USD 65/bbl net crude realisation amidst low risk of windfall tax, said analysts.

Toyota Motor sales fall for second month in March on West Asia slump

Global sales shrank 7.3 per cent from the same month a year earlier to 897,871 vehicles, with overseas sales down 7.2 per cent and those in Japan falling 7.8 per cent

Luxury giants slump as West Asia demand seizes up due to prolonged war

Shoppers in the West Asia are some of the world's biggest spenders, splashing out at retail hubs like Dubai and other luxury destinations including Paris and Milan

India to buy urea at near double pre-war prices amid supply disruption

Urea from the West Asia, a major supplier to the South Asian nation, was quoted at $490 a ton before the war began, according to Green Markets data

India denies any payment to Iran for Hormuz passage, calls reports fake

India on Wednesday denied making any payments - either in cash or cryptocurrency - to Iran to secure safe passage for its vessels through the Strait of Hormuz amid heightened tensions in the region. The clarification came after two Indian vessels had to turn back from the Strait of Hormuz after Iranian forces fired upon them as they attempted to cross the crucial waterway on April 18. Before turning back, the captain of Indian tanker Sanmar Herald, in an audio recording that has surfaced, is heard pleading with Iranian forces to stop firing despite prior clearance to pass the Strait of Hormuz. "This is motor vessel, Sanmar Herald. You gave me clearance to go, my name is second on your list... You are firing now. Let me turn back." While New Delhi has consistently rejected claims of any financial arrangements with Tehran for ship movement through the critical energy corridors, some reports linked the April 18 incident to a crypto scam. Reports suggest scammers are offering shipowner

IRGC seizes two vessels in Strait of Hormuz, cites 'red line' breach

Iranian news agencies, citing an official statement from the IRGC Navy, said the vessels MSC Francesca and Epaminondas were seized and redirected towards Iranian territory

LPG reliance highlights gaps in India's piped gas expansion drive

India's dependence on LPG imports and slow expansion of piped gas networks highlight policy gaps, affordability challenges, and consumer behaviour issues hindering a transition to cleaner cooking fuel