Prime Minister Narendra Modi has urged citizens to cut fuel and fertilizer consumption and avoid non-essential imports such as gold as rising oil prices from the West Asia conflict strain India’s economy. The surge in crude prices has weakened the rupee and increased pressure on foreign exchange reserves, prompting calls for greater conservation of energy and foreign currency.

The government is expected to begin consultations with industry and other stakeholders to assess possible responses. While no abrupt measures are planned, officials are evaluating options to manage dollar demand and maintain market stability. Restrictions on outward remittances are not under consideration, as authorities remain cautious about sending negative signals to investors.

Policymakers are also weighing steps such as encouraging work from home to reduce fuel use, reviewing fuel price controls, and exploring ways to attract more foreign currency inflows. These could include special deposit schemes for overseas Indians, easing certain investment rules, or adjusting import duties if necessary. At the same time, the central bank has been intervening in currency markets and considering additional tools to defend the rupee without heavily relying on interest rate hikes.