With global energy and trade routes under pressure, India has stepped in with a calibrated, multi‑pronged strategy to insulate its economy from potential spillovers.
Honestly, when I first heard about the cease‑fire between the United States and Iran, I thought the markets would just calm down. But you know how it works – even after the guns fall silent, the price of oil, the cost of freight, and commodity markets stay jittery. Every time a ship gets delayed near the Strait of Hormuz, I can feel the tremor on the price of diesel at my local petrol pump in Chennai.
That’s why the government rushed to stitch together a set of measures that touch almost every corner of daily life – from the farmer in Punjab buying fertiliser, to the traveller flying from Delhi to Bengaluru, to the small‑scale exporter in Gujarat trying to keep his orders flowing.
Farmers Shielded: Higher Fertiliser Subsidy To Offset Global Price Swings
India’s fertiliser market is like a tightly‑knit family – it depends heavily on imports of phosphoric acid, rock phosphate, sulphur, ammonia and potash. When the West Asia conflict rattles the global supply chain, those inputs become scarce and prices shoot up. To protect the farmer, the Cabinet approved a subsidy outlay of Rs 41,533 crore for the Kharif 2026 season under the Nutrient Based Subsidy (NBS) scheme, which is about an 11.60 percent increase over the previous year’s Rs 37,216.15 crore.
Union Minister Ashwini Vaishnaw said the West Asia conflict has clearly impacted fertilisers and that availability is not a question mark today. I remember my uncle in Haryana waiting in line at the fertiliser depot last month – the relief he felt when he heard the subsidy was bumped up was huge. It means he can buy urea at a price that doesn't eat up all his profit margin, and he can still afford to sow wheat without worrying about skyrocketing input costs.
These revised subsidy rates essentially lock in a price envelope for fertilisers during the crucial Kharif sowing period. For a country that feeds over a billion people, keeping the cost of seed nutrition stable is a massive step towards food security.
Flyers Get Relief: 25% Cut In Airport Charges To Keep Fares Stable
Aviation turbine fuel has been climbing like a mango tree in the monsoon. For airlines, the rise translates into higher operating costs, and eventually higher ticket prices for passengers. To keep the airfares from spiralling, the Ministry of Civil Aviation told the Airports Economic Regulatory Authority (AERA) to slash landing and parking charges at major airports by 25 percent for three months. The Airports Authority of India was also asked to pass the same relief to non‑major airports.
Officials estimate this move will save airlines roughly Rs 400 crore over the three‑month window. Civil Aviation Minister Ram Mohan Naidu added that even with the challenging situation, cancellations and fuel cost hikes won’t severely affect domestic operations. I’ve already seen the effect – my friend booked a flight from Kolkata to Mumbai and the fare was almost the same as it was last year, which is a big relief when families are trying to see each other during festivals.
The earlier step of capping the pass‑through of ATF price increases at 25 percent also helped keep the journey affordable for middle‑class travellers who might otherwise skip a trip due to price shock.
Credit Lifeline For Businesses: Rs 2.5 Lakh Crore Guarantee Scheme In The Works
Running a small enterprise in Bangalore’s tech park, I know how a sudden cost pinch can choke cash flow. To address that, the government is preparing a huge Rs 2.5 lakh‑crore credit guarantee scheme, an expansion of the Emergency Credit Line Guarantee Scheme (ECLGS) that helped during the Covid‑19 pandemic.
This new scheme will offer up to 90 percent government‑backed guarantees on loans, which means banks feel safer lending and can extend credit at lower rates. A senior official told Moneycontrol that the scope and overall limit of the scheme will be broadened so that a larger set of sectors and enterprises can get guaranteed credit more easily. For a textile unit in Surat, that could mean being able to purchase raw cotton even when global prices are volatile.
Like the earlier ECLGS, the scheme will keep borrowing conditions favourable – interest rates capped, collateral requirements limited, and structured repayment support. This safety net is expected to keep factories humming and prevent layoffs during the uncertainty caused by the conflict.
Consumers First: Fuel Duty Cut To Contain Price Shock
When the Strait of Hormuz faced disruptions, crude oil prices jumped, and you could literally see the effect on the fuel pump in Pune – the numbers went up faster than a Delhi metro during rush hour. In March, the government stepped in and cut excise on petrol to around Rs 3 per litre from Rs 13, and diesel excise was knocked down to zero from Rs 10.
This temporary relief reduces the tax component in retail fuel prices, letting the state‑run oil marketing companies absorb part of the rise in crude costs instead of passing it all to the consumer. For a daily commuter like me, that translates into a few rupees saved per litre, which adds up to a decent amount over a month of commuting.
Securing Domestic Supply: Export Levies On Diesel, ATF
To make sure domestic demand isn’t starved when the world supply is tight, the government imposed export levies – Rs 21.5 per litre on diesel and Rs 29.5 per litre on aviation turbine fuel. These levies are meant to keep more fuel in the country, ensuring that even if overseas buyers come knocking, the fuel stays where it’s needed most – on our roads and in our aircraft.
A truck driver in Madhya Pradesh told me that the diesel he fills at the depot now seems more reliable, and the price hasn't shot up as much as he feared. Such measures help balance the global demand‑supply equation without hurting the common man.
Refineries At Full Capacity: Ensuring Steady Fuel Availability
India’s refining ecosystem has been humming at high capacity. All refineries are operating with ample crude inventories, ensuring a steady flow of fuel across sectors. Domestic LPG production has also risen, meeting household demand and reducing reliance on imports. On a recent day, more than 53.5 lakh domestic LPG cylinders were delivered, boosting the supply chain for cooking gas in metros and villages alike.
The total commercial LPG allocation has been lifted to about 70 percent of pre‑crisis levels, including a 10 percent reform‑linked allocation. For families in rural Odisha, this means less worry about running out of cooking gas during the winter months.
Gas Supply Strengthened: PNG, CNG Rolled Out At Scale
To take some pressure off conventional fuels, the government ensured uninterrupted supply of cleaner alternatives – piped natural gas (PNG) for households and compressed natural gas (CNG) for transport – at 100 percent capacity. Over 3.9 lakh new PNG connections were added in March alone. I visited a new colony in Jaipur where houses were equipped with PNG pipelines right from the start – it’s a big step toward reducing dependence on LPG cylinders.
The expansion of CNG stations also makes it easier for auto‑rickshaws and taxis to run on cleaner fuel, cutting down pollution in city streets.
Exporters Get Cushion: SEZ Flexibility, Freight Support And Tax Relief
Exporters are feeling the pinch of higher freight costs and war‑risk insurance premiums. To ease that, Special Economic Zone (SEZ) units have been allowed to sell up to 30 percent of their output in the domestic market for one year, from April 2026 to March 2027, with concessional customs duties ranging between 5 and 15 percent depending on the product.
At the same time, the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme has been extended till the end of September 2026, ensuring exporters continue to receive refunds on embedded taxes. Moreover, a dedicated support package of about Rs 497 crore has been introduced to offset the surge in freight charges and war‑risk insurance premiums.
A garment exporter in Tirupur told me that without this support, the extra freight cost would have eaten into his margins, possibly forcing him to cut down on orders. The combined relief helps keep his factory running and his workers employed.
Liquidity Relief: RBI Eases Credit And Payment Timelines For Exporters
To complement the export‑focused measures, the Reserve Bank of India has relaxed the credit window for exporters, extending the maximum period for export credit from around 270 days to 450 days. In addition, the timeline for realisation of export proceeds has been stretched from nine months to up to 15 months.
This flexibility means an exporter of spices from Kerala can now wait longer for payment without fearing a cash crunch, and can use that breathing space to plan the next shipment.
Manufacturing Shielded: Duty Waivers On Petrochemical Inputs
Petrochemical feedstocks such as benzene, butadiene and other intermediates are vital for plastics, pharmaceuticals, textiles, chemicals and automotive components. The government removed customs duties on selected petrochemical inputs until the end of June 2026. This exemption helps manufacturers keep their production costs in check, ensuring that the price of everyday items like plastic bags or medicine tablets doesn’t jump suddenly.
For a small factory in Gujarat that makes polymer sheets, the duty waiver translates into lower raw‑material costs, which can be passed on as stable prices to customers.
