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NEW DELHI: Recognising the “significant impact” of the conflict in West Asia on the global economy and its effect on India, the cabinet committee on security led by PM Narendra Modi on Sunday discussed steps to diversify the sources of import of chemicals, pharma, petrochemicals and other industrial sectors, while drawing comfort from the stock of fertiliser and coal.“We had extensive discussions on short-, medium- and long-term measures, including ensuring continued availability of fertilisers for farmers, diversifying import sources for key sectors, promoting exports to new destinations and more. We are committed to safeguarding our citizens from the impact of the conflict,” the PM posted on X after the meeting of the panel comprising the home, defence, finance and external affairs ministers.
The assessment was that there may not be a significant domestic impact in the immediate term, but there was a need to prepare for the medium and long term. Currently, the challenge before policymakers is that there is no clarity on when and how the conflict will end.“The ongoing conflict in West Asia will have significant short-, medium- and long-term impact on the global economy and its effect on India were assessed and counter-measures, both immediate and long-term, were discussed,” an official statement said.Sunday’s meeting was also attended by other ministers, including of agriculture, health, chemicals, power, shipping, civil aviation, commerce & industry, I&B, food & civil supplies and railways.While Modi has been holding talks with his counterparts from other countries, particularly those in the Gulf region – home to a large Indian diaspora and the source of a large chunk of energy imports – this was the first meeting at the level of CCS to work out a strategy with an assessment that the impact of the conflict is going to last for some time.The PM has suggested a dedicated group of ministers and a panel of secretaries to deal with the issue, with detailed stakeholder consultations lined up through sectoral groups. He has also asked the Centre to coordinate with states to check black-marketing and hoarding.“PM said that the conflict is an evolving situation and the entire world is affected in some form. In such a situation, all efforts must be made to safeguard citizens from the impact of this conflict. PM instructed that all arms of govt work together to ensure least inconvenience to citizens,” an official statement said.It added that several measures proposed by different ministries would be prepared and implemented in the coming days.At the meeting, cabinet secretary TV Somanathan made a presentation on the global situation, and the mitigation measures taken so far and those being planned by different departments. “The expected impact and measures taken to address it across sectors like agriculture, fertilisers, food security, petroleum, power, MSMEs, exporters, shipping, trade, finance, supply chains and all affected sectors were discussed. The overall macro-economic scenario in the country and further measures to be taken were also discussed,” the statement said.
