March 23, 2026
Indian Prime Minister Narendra Modi told the lower house of Parliament that the situation in the Middle East is “worrisome” but said the fundamentals of the Indian economy are strong and can weather the “unprecedented challenges” posed by the conflict.
Modi highlighted that the Iran war was affecting global markets and supply chains and noted India’s heavy reliance on the region for crude oil and gas transported through key routes including the Strait of Hormuz. “The situation in West Asia is worrisome. This conflict has been going on for more than three weeks,” he said, while adding that “the inherent strength of India’s economic fundamentals has… provided significant support to the nation during this period.”
He outlined steps the government has taken to secure energy supplies, including addressing LPG demand and maintaining strategic petroleum reserves, and said authorities have facilitated bringing home around 375,000 citizens since the conflict began, including about 1,000 from Iran. Modi said India maintains trade relations with both “the warring and war-affected countries” and is engaging diplomatically, urging a peaceful resolution. “War is not in the interest of humanity. India is encouraging all sides to end it peacefully,” he said, adding that attacks on commercial ships and disruption of the Hormuz Strait are “not acceptable.”
Ahead of the parliamentary address, Modi chaired a meeting of the Cabinet Committee on Security to review the fallout of the war and discuss mitigation measures. The meeting addressed coal stocks at power plants and diversification of imports for key sectors including chemicals and pharmaceuticals. He directed government agencies to minimize the impact of the war on Indians.
Economic fallout was visible in markets: Indian equities fell sharply on Monday, with the BSE Sensex down about 2.6% and the Nifty 50 down about 2.8% in early trade, wiping out roughly Rs 11.78 trillion (€110 billion) in investor value within an hour, amid concerns over escalating tensions and uncertainty about the Strait of Hormuz.
On the diplomatic front, External Affairs Minister S. Jaishankar said he had a “useful conversation” with German Foreign Minister Johann Wadephul about the ongoing conflict and that the two ministers agreed to remain in touch. Domestically, some residents in India’s Kashmir region launched a humanitarian drive to support people in Iran affected by the war; volunteers went door-to-door collecting donations, and the Iranian Embassy in India thanked them for their solidarity.
