March 23, 2026
Prime Minister Narendra Modi told the Lok Sabha that while the situation in West Asia is “worrisome,” India’s economic fundamentals remain strong enough to absorb the shocks from the Iran conflict. He said the fighting has disrupted global markets and supply chains and highlighted India’s reliance on crude and gas transiting key routes such as the Strait of Hormuz.
Modi outlined measures the government has taken to secure energy supplies, including managing LPG demand and using strategic petroleum reserves. He said authorities have helped repatriate about 375,000 Indians since the conflict began, including roughly 1,000 people from Iran, and have directed agencies to limit domestic disruption.
The prime minister stressed that India keeps trade ties with both sides and is pursuing diplomatic engagement, urging a peaceful end to hostilities. He called war “not in the interest of humanity” and said attacks on commercial shipping and any disruption of the Hormuz Strait are unacceptable.
Ahead of his remarks, Modi chaired a Cabinet Committee on Security meeting to assess the fallout and approve mitigation steps. Discussions covered coal inventories at power plants and diversifying imports for critical sectors such as chemicals and pharmaceuticals.
Markets showed immediate effects of the conflict. In early trading on Monday, the BSE Sensex fell about 2.6% and the Nifty 50 lost around 2.8%, erasing roughly Rs 11.78 trillion (about €110 billion) in investor value within an hour amid concerns over rising tensions and potential supply disruptions.
On the diplomatic front, External Affairs Minister S. Jaishankar said he had a “useful conversation” with German Foreign Minister Johann Wadephul and that the two agreed to stay in contact as the situation evolves.
At a local level, residents in Jammu and Kashmir launched a humanitarian drive to assist Iranians affected by the conflict, going door-to-door to collect donations. The Iranian Embassy in New Delhi thanked volunteers for their solidarity.
Modi reiterated that the government will continue to monitor energy and supply-chain risks closely and take steps to protect consumers and industries while pursuing diplomatic channels to encourage a peaceful resolution.