PM Modi says conflict-hit regions are important for energy security

The PM’s comments came amid fears of further escalation in the Middle East if Israel were to retaliate and attack Iran, potentially its nuclear, and oil facilities. This, analysts fear, could fuel a surge in energy prices and draw the region into a wider conflict

Prime Minister Narendra Modi made oblique references to the widening conflict in the Middle East and the Russia-Ukraine war on Friday (October 4, 2024), saying the two regions were crucial for the global economy and energy security.

His comments came amid fears of further escalation in the Middle East if Israel were to retaliate and attack Iran, potentially its nuclear, and oil facilities. This, analysts fear, could fuel a surge in energy prices and draw the region into a wider conflict.

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Speaking at the 3rd edition of the Kautilya Economic Conclave in New Delhi, Modi on the domestic front committed to continuing structural reforms to help India become a developed nation by 2047.

"This conclave is happening as two large regions of the world are close to war-like situations. These two big regions are crucial for the global economy as well as energy security," he said without naming any country.

Import dependent

More than 85% of India’s crude oil is imported and also about half of its gas needs. A bulk of this comes from the Middle East, and if Israel-Iran got into a prolonged conflict, supplies could be impacted.

"In the midst of these big global uncertainties, we are all witnessing the Indian era; we are discussing India. This shows the confidence in India... Whether it is science, technology, or innovation, India clearly is at a sweet spot. Reform, perform, and transform is the motto; we are taking India forward," Modi said.

He said India today is the fastest-growing major economy, and in terms of GDP, India is the fifth largest economy.

The NDA government, in its third term in office, has made "bold policy changes" and taken measures to boost jobs and skilling and focus on sustainable growth and innovation to help India stay on the high-growth path.

Huge transformation

"Today, the Indian economy is transforming. The Indian economy is on the path of sustained high growth. Today, India is preparing not only to reach the top but to remain at the top. Every sector offers immense opportunities," Modi noted.

He said global leaders and financial experts are optimistic about India's growth. Investors believe it is the right time to invest in India.

"It is not a coincidence. Rather, it is the result of the reforms that have happened in India in the past decade," Modi said.

The Prime Minister said 111 companies have registered on the portal for the PM Internship scheme. This scheme, announced in the budget, aims to help youth get internships in companies.

India is setting up semiconductor plants, and soon, 'Made in India' chips will be accessible to the world, he said.

To boost manufacturing, India introduced a production-linked incentive (PLI) scheme, which attracted investments worth ₹1.25 lakh crore.

He added that 25 crore people have moved out of poverty over the last 10 years.

Modi said the government has strengthened the banking system, rolled out GST, introduced the Insolvency and Bankruptcy Code, opened up mining and defence for private investment, further liberalised FDI, and reduced the compliance burden.

Published - October 04, 2024 11:52 pm IST