New Delhi: Prime Minister Narendra Modi on Tuesday announced the setting up of seven empowered groups to assess the impact of the ongoing military conflict in West Asia on energy supplies, essential commodities and supply chains and devise a strategy to mitigate its impact on the Indian economy.In a statement in the Indian Parliament, Modi said the conflict had disrupted economies around the world and warned that it would take time to recover from the damage done in West Asia. Taking a page from the government’s approach during the Covid-19 pandemic, he said the new team would function as a rapid response team focusing on key areas such as petrol and diesel, fertilizers, natural gas, supply chain and inflation.
“I have every confidence that through these joint and coordinated efforts we will be able to respond to these situations more effectively,” the prime minister said, noting that an inter-ministerial group has been meeting regularly to track developments and respond to new challenges posed by the situation.The seven teams, composed of senior officials from various ministries and departments, are tasked with identifying risks and formulating short-, medium- and long-term strategies within a stipulated timeframe.Their tasks include assessing vulnerabilities in energy supply and pricing, ensuring strategic reserves are adequate, and taking steps to manage price volatility and prevent supply disruptions. They will also examine potential bottlenecks – from routes and ports to air corridors and key imports – and recommend pre-emptive measures.The organizations are expected to explore alternative sources of imports to reduce dependence on any single region, while keeping a close eye on domestic supply and price stability of essential commodities including food, fertilizers and fuel.During the pandemic, the government set up 11 such empowered groups of officials and experts to take speedy decisions and ensure coordination between the Center and states. Modi pointed to the possibility of protracted chaos and said the adverse effects of the conflict could last for a long time. “But I would like to reassure people that the government remains vigilant and proactive and is taking every necessary decision seriously.”
