Following Prime Minister Narendra Modi’s call for Indians to conserve fuel and save foreign exchange as the country grapples with the fallout of the Iran war, state-run institutions, public sector companies and corporates are rolling out wide-ranging austerity and energy-saving measures.
Addressing a public gathering in Hyderabad last Sunday, Modi urged citizens to depend more on public transport and accelerate the adoption of electric vehicles (EVs).
He also called for a return to Covid-era practices such as work-from-home and virtual meetings.
The prime minister further asked people to avoid non-essential foreign travel and refrain from buying gold for a year.
He also urged consumers to prioritise locally made goods.
“Use metros wherever metros are available. Use carpooling to go to places, and use the Railways if you have to transport goods. All of this will reduce dependency on petrol and diesel, and thereby cut the dependence on foreign currency,” he said.
Referring to the ongoing conflict in West Asia, he said that during a global crisis, “We have to take resolutions, keeping the country above all else.”
The call came as India’s acute dependence on imports to fulfil its crude oil requirements and natural gas needs has caused its import bill to surge by billions of dollars, with the Strait of Hormuz remaining shut for more than two months.
India imports nearly 90% of its crude oil requirements and about half of its natural gas needs.
India’s foreign exchange reserves have declined by $38 billion since the Iran war began, marking one of the steepest drawdowns in the region.
Rising imports of oil, gas, fertilisers and gold are also increasing demand for dollars at a time when foreign investment inflows are weakening, exports are slowing, and geopolitical tensions are unsettling financial markets.
Government asks departments to cut costs
According to an order reviewed by Reuters, the Department of Financial Services has directed institutions, including the State Bank of India, Bank of Baroda and the Life Insurance Corporation of India, to implement cost-cutting measures across operations.
The order mandates that meetings, reviews and consultations should be conducted through video conferencing unless physical presence is considered essential.
It also said foreign travel by senior executives, including chairpersons, managing directors and chief executive officers, should remain within prescribed limits and that overseas engagements should increasingly be attended virtually.
In another key directive, the government asked institutions to accelerate the transition towards electric mobility.
“All organisations may aim at replacing the petrol and diesel vehicles hired by them in their head offices and branch offices by electric cars as far as possible,” the order said.
The austerity measures are expected to affect millions of employees working across public sector banks, insurers and financial institutions nationwide.
Power ministry joins conservation push
The Union power ministry has also advised public sector undertakings under its administrative control to promote work-from-home policies and reduce foreign travel following Prime Minister Narendra Modi’s recent appeal for more rational use of energy.
The advisory applies to companies including NTPC, Power Grid Corporation of India, Power Finance Corporation and REC Ltd.
The ministry suggested that organisations evaluate the possibility of allowing some employees to work from home one day a week.
It further proposed that up to 20% of staff could be permitted to work remotely on any given day, wherever operationally feasible.
Alongside these efforts, the Bureau of Energy Efficiency has launched a pilot programme aimed at encouraging government employees and PSU workers to reduce vehicle usage and adopt energy-efficient practices.
The initiative, called “RAHI: Action for High Efficiency Initiative,” will allow employees to register both official and personal vehicles on a digital portal that tracks monthly usage.
Officials who successfully reduce fuel consumption will receive small incentives.
In a post on X, the Bureau of Energy Efficiency said the programme seeks to promote “energy-efficient practices and behavioral changes” across the ministry and affiliated organisations.
After appealing for fuel conservation, Modi himself significantly reduced the size of his official convoy.
Recent footage showed the prime minister travelling with only two SUVs — a sharp reduction from earlier convoys consisting of more than 10 vehicles.
States and corporates embrace work-from-home
Several Indian states have begun implementing similar austerity measures.
In Uttar Pradesh, Chief Minister Yogi Adityanath ordered a 50% reduction in vehicle convoys for ministers and dignitaries while also encouraging greater adoption of work-from-home practices.
Corporate India has also started responding to the government’s call for conservation.
RPG Group Chairman Harsh Goenka urged employees to reduce domestic and international travel, maximise virtual meetings and promote carpooling and electric vehicle usage as part of what he described as “responsible resource utilisation.”
At Shaadi.com, founder Anupam Mittal announced that Wednesdays would now be designated work-from-home days, estimating that one remote workday each week for 500 employees could save nearly 30,000 litres of petrol annually.
Hindustan Unilever said more than 97% of the energy used in its operations now comes from renewable sources and that it is expanding electric vehicle adoption across its supply chain.
“We believe the Indian economy is resilient and these proactive measures will help us navigate the current times and continue on the growth path,” a company spokesperson said.
Industry groups are also adjusting plans in response to the government’s appeal.
The Confederation of Real Estate Developers’ Associations of India shifted its annual convention from Amsterdam to India, citing the prime minister’s conservation push.
Markets remain cautious
Meanwhile, India’s benchmark equity indices ended largely flat on Monday after recovering from sharp intraday losses, highlighting fragile investor sentiment amid concerns over the impact of higher oil prices and geopolitical uncertainty.
The Nifty 50 closed 0.03% higher at 23,649.95, while the BSE Sensex gained 0.1% to end at 75,315.04.
Both indexes had fallen as much as 1.4% during the session before recovering partially in late trade.
Despite some recovery in IT shares due to a stronger dollar, broader market sentiment remained weak.
Eleven of the 16 major sectors ended lower on Monday, while small-cap and mid-cap indices fell 1.3% and 0.2%, respectively.
The IT index rose 2.4% after suffering a sharp decline last week, as investors anticipated stronger earnings for export-oriented technology companies benefiting from dollar-denominated revenues.
Still, analysts warned that the broader outlook remains uncertain as oil prices continue climbing.
“The narrow recovery indicates that sentiment remains fragile for countries like India that are dependent on energy imports, as the Iran war has extended to a third month and pushed Brent Crude prices above $110 per barrel,” said Dharmesh Kant, head of equity research at Cholamandalam Securities.
The post WFH, EV push: how India is responding to PM Modi’s fuel-saving call amid Iran war appeared first on Invezz
