Lok Sabha Question No. 5876 (UNSTARRED), answered on 2026-03-30
Subject: Impact of Iran-Israel War
Ministry: FINANCE
Asked by: Shri Raja A

## 5876. Shri Raja A:

- Will the Minister of FINANCE be pleased to state: (a) whether the Government reviewed the economic situation in view of Iran-Israel war in the Middle East impacting oil prices, trade disruptions and other factors; (b) if so, the details thereof; (c) the details of the extent by which the GDP growth and attracting foreign investment is likely to be affected; (d) whether the Government has drawn up any contingency plan with a series of steps to deal with the volatility of economic situation and to improve balance of payments position, if so, the details thereof; and (e) if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) and (b) The Government is consistently reviewing and closely monitoring the economic impact of the ongoing West Asia conflict at the highest levels and taking immediate corrective and  facilitative  measures  as  warranted.  As  part  of  the  coordinated  whole-of-government response to the situation, seven new Empowered Groups have been constituted to undertake swift and far-reaching action on supply chains, petrol-diesel, fertilisers, gas and inflation. In addition, an Inter-Ministerial Group on Supply Chain Resilience has been operationalised to monitor the situation and coordinate facilitation measures related to exports and imports.

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.5876

TO BE ANSWERED ON MONDAY, MARCH 30, 2026/ CHAITRA 09, 1948 (SAKA)

## Impact of Iran-Israel War

(c) The  Indian  economy  has  entered  this  phase  of  heightened  global  uncertainty  with relatively stable macroeconomic fundamentals, supported by domestic demand, prudent fiscal management, and adequate external sector buffers. The overall impact of the ongoing conflict will depend on the evolving global situation, including the duration and intensity of the conflict.

(d) and (e): The Government has undertaken calibrated measures to manage external sector volatility and support the balance of payments. Steps are taken to diversify crude oil /LNG/LPG import sources. Measures have also been taken to enhance LPG (Liquefied Petroleum Gas) production,  rationalise  natural  gas  allocation  to  priority  sectors,  encourage  LPG-to-PNG (Pipeline Natural Gas) conversions where systems are in place,  and curb hoarding through enforcement  actions.  Steps  have  been  taken  to  support  exports,  including  restoration  of RoDTEP (Remission of Duties and Taxes on Exported Products) rates and the launch of the Resilience  and  Logistics  Intervention  for  Export  Facilitation  (RELIEF) Scheme to  offset elevated freight and insurance costs, along with enhanced export credit and insurance cover. Supply  chains  are  being  closely  monitored,  supported  by  trade  facilitation  measures  and coordinated inter-ministerial  action.  These  measures  are  aimed  at  mitigating  external  risks, supporting the balance of payments, and maintaining macroeconomic stability.

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