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If there is a Third World War, how will the Indian government deal with the crisis?

by Aaryan Srivastav
October 26, 2024
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The increasing tension between Iran-Israel, attacks in Israel-Hamas, Israel-Lebanon, the prolonged Russia-Ukraine war, i.e. the environment being created at the global level, is increasing the risk of a third world war. If such a situation arises, there will be a big impact on India’s economy. Today India’s economy is largely dependent on the rest of the world. In such a situation, how will India deal with this crisis? Let’s read this report of Arun Chatta…

1. Crude oil management

The current consumption of oil in India is 4.5 million barrels per day. Government companies have the capacity to store crude oil and petroleum products for 64.5 days of demand. This has been increased to 74 days and the government is working on developing additional storage capacity of 6.5 million metric tonnes. Once it is developed, additional oil reserves of 12 days will be available. According to the International Energy Agency, the member country should have oil reserves equal to 90 days. In the changing environment, India is importing about 60 percent of crude oil from Russia. Whereas, the rest is being imported from Gulf countries.

Also read: If the scope of war increases, everyone from the working class to the common man will have to pay its price.

2. Currency reserves at record level

India’s foreign exchange reserves have crossed the record level of $ 701 billion, which is very important for the country’s economy. Foreign exchange reserves act like insurance, which helps in purchasing crude oil and other essential goods from other countries in normal circumstances as well as in times of crisis. From an economic point of view, increase in foreign exchange reserves reduces the risks of the global financial market on the country’s economy.

3. Situation improved in the Red Sea

Amidst all the concerns, Union Commerce Minister Piyush Goyal said in an informal conversation last week that there is a situation of tension at the global level but there is nothing to worry about for India. Now the situation is becoming normal. Movement of cargo vehicles has started through the Red Sea and India’s exports are increasing.

4. Petrol and gas prices will not increase

Union Petroleum Minister Hardeep Singh Puri said two days ago regarding the increase in the prices of petrol and gas that India has sufficient reserves of petroleum. There is no shortage of crude oil in the international market also. Therefore there will be no increase in prices in India.

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