'Remarkable Stability': PM Modi Shares CEA's Gulf War Analysis, Hails India’s Economic Resilience

Last Updated:June 29, 2026, 15:04 IST

Nageswaran said India avoided an oil shock, supply disruptions and a balance-of-payments crisis while maintaining fuel supplies and macroeconomic stability.

Prime Minister Narendra Modi on Monday said India had demonstrated “remarkable stability" during challenging global conditions, attributing it to a decade of macroeconomic stability and responsive policymaking.

His remarks came after Chief Economic Advisor (CEA) V Anantha Nageswaran wrote that India had successfully navigated the economic fallout of the recent Gulf conflict, which temporarily disrupted shipping through the Strait of Hormuz, without facing a fuel crisis or macroeconomic instability.

Sharing Nageswaran’s opinion piece on X, PM Modi said, “India has shown remarkable stability during tough and testing times globally, despite our structural vulnerabilities. It has been achieved by ensuring macroeconomic stability over the last decade while making policy-making responsive and agile.

We are committed to furthering the process of Aatmanirbharta to safeguard our nation."

In his article, published by Business Standard, Nageswaran reflected on the country’s response to the conflict and wrote that despite fears of an oil shock, supply disruptions and a balance-of-payments crisis, India managed to maintain uninterrupted fuel supplies, stable domestic prices and overall macroeconomic stability.

“This was not an accident, and it was not luck alone. It was the work of a government that chose to act as it had during the pandemic—deliberately and gradually, building one measure upon another rather than reaching for a single dramatic lever," he wrote.

“The first priority was the household. Throughout, not a single retail outlet ran out of stock, and every kitchen had its cylinder. The import-linked cost of a 14.2 kg cylinder rose above ₹1,600, yet the household price was held near ₹900, and lower still for the poorest," the CEA added.

According to the CEA, the government’s response included absorbing part of the fuel price shock through reductions in excise duty on petrol and diesel, maintaining cooking gas supplies, diversifying energy imports by increasing purchases from countries including the United States and Russia, and securing waivers to continue importing Russian crude.

Nageswaran also highlighted longer-term measures such as expanding piped gas connections, promoting ethanol blending, coal gasification and strengthening strategic crude storage.

“The government also pressed measures for the longer run: converting homes from cylinders to piped gas, a coal gasification programme, a further push on ethanol blending, and strategic crude storage agreed on the Prime Minister’s visit to the United Arab Emirates," he wrote.

He said external accounts also remained stable, supported by policy measures to attract foreign investment, growth in exports and strong foreign direct investment inflows.

While acknowledging that easing global crude prices also helped, Nageswaran argued that prudent policymaking and timely government intervention played a key role in cushioning the economy from the impact of the Gulf conflict.

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