Indian Prime Minister Narendra Modi delivered one of his strongest warnings yet on the state of the global economy, cautioning that the world risks losing decades of progress against poverty if ongoing crises are not urgently addressed.
Addressing the Indian diaspora at a community event in The Hague during the second leg of his five-nation European tour, PM Modi said the world was passing through an exceptionally difficult period marked by war, economic instability and an escalating energy crisis.
“The world is dealing with new challenges,” PM Modi said while speaking in Hindi. Referring to the continuing geopolitical turmoil, especially in West Asia following the US and Israel’s attacks on Iran, he described the current period as a “decade of disasters”.
“First came the coronavirus pandemic; then wars began to break out, and now there is an energy crisis. This decade is turning into a decade of disasters for the world,” he said.
PM Modi Warns Poverty Reduction Gains Could Be Reversed
The Prime Minister cautioned that if the international community failed to act quickly, the consequences could be severe for millions of people worldwide.
“If these situations are not changed rapidly, the achievements of the past many decades would be washed away, and a huge section of the world’s population would be pushed back into poverty,” he warned.
The remarks come at a time of growing economic anxiety in India and across several countries dependent on imported energy supplies, as tensions in West Asia continue to disrupt global oil markets.
PM Modi Earlier Urged Indians To Practice Voluntary Austerity
Days before beginning his European tour, PM Modi had appealed to citizens to adopt voluntary austerity measures to help reduce pressure on the economy during the ongoing energy crisis.
Speaking in Hyderabad earlier this month, he urged people to work from home wherever possible, reduce unnecessary overseas travel and limit purchases of gold. He also encouraged the use of public transport and carpooling to save fuel and reduce foreign exchange outflow.
Calling fuel conservation an act of “patriotism”, PM Modi said behavioural changes introduced during the Covid-19 pandemic, such as remote work, could once again help manage economic stress.
“We must make efforts to use only as much as is needed to save foreign currency and reduce the adverse effects of war crises,” he said.
Fuel Prices Increased After Four-Year Freeze
The Prime Minister’s comments come just days after state-owned oil companies raised petrol and diesel prices by ₹3 per litre — the first major retail fuel hike in four years.
Public sector companies including Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum announced the revision on May 15.
In Delhi, petrol prices increased to ₹97.77 per litre, while diesel rose to ₹90.67 per litre. Prices were even higher in several states due to local taxes and levies.
Industry experts and economists warned that the impact of higher fuel prices would extend beyond transport costs and eventually affect food prices, freight charges and manufacturing expenses over the coming months.
BJP Defends Fuel Price Hike Amid Opposition Criticism
The ruling Bharatiya Janata Party defended the price hike, arguing that India had shielded consumers from the global oil shock for more than two months despite rising crude oil prices.
Government leaders said oil marketing companies absorbed much of the increase in international crude prices for nearly 76 days before implementing what they described as a “limited and calibrated” hike.
Opposition parties, however, accused the government of delaying the fuel price revision until after key state elections concluded. Critics pointed out that prices remained unchanged even when global crude rates were comparatively lower.
Strait Of Hormuz Crisis Deepens Global Energy Concerns
The current energy crisis has largely been triggered by Iran’s closure of the Strait of Hormuz, one of the world’s most critical oil shipping routes.
Around 20 per cent of global oil trade passes through the narrow waterway. The International Energy Agency has described the disruption as the largest supply shock in the history of the global oil market.
India remains particularly vulnerable because it imports nearly 90 per cent of its crude oil requirements, with roughly half of its supplies usually transported through the Strait of Hormuz.
Several Asian nations have already introduced emergency measures to cope with the crisis. The Philippines declared a national energy emergency, South Korea advised citizens to conserve electricity, while Japan initiated its largest-ever release of emergency oil reserves.
PM Modi Continues Multi-Nation European Tour
PM Modi arrived in the Netherlands after completing a visit to the United Arab Emirates. His ongoing five-country European tour also includes visits to Sweden, Norway and Italy.
The visit comes amid intensifying global diplomatic efforts to manage the economic and geopolitical fallout from the conflicts in West Asia and the continuing Russia-Ukraine war.