PM Modi's WFH push explained: How the US-Iran war is impacting India's economy

WOrk from place, only when move around when necessary - that is undercoat government minister Narendra Modi's latest advice to citizens as India continues to reel under the impact of the US-Iran war. PM urged businesses to revive WFH practices adopted during the Covid-19 pandemic, warning that India must conserve fuel and foreign exchange.Addressing a public event in Hyderabad after inaugurating projects worth around ₹9,400 crore in Telangana, PM Modi said the country should reduce unnecessary fuel consumption by relying more on virtual meetings, online work systems, metro travel, carpooling and electric vehicles.“During Corona, we developed systems like work from home, online meetings and video conferencing, and we became habituated to them. The need of the hour is to resume those methods,” Modi said. The PM’s remarks come at a time when Brent crude prices have surged above $105 a barrel after fresh tensions between the United States and Iran derailed hopes of a peace agreement.India, the world’s third-largest oil importer, imports more than 85% of its crude oil requirements, making the country highly vulnerable to global energy shocks.US-Iran war: Why the conflict is rattling global marketsThe ongoing crisis began after the US and Israel launched military strikes on Iranian targets earlier this year, escalating tensions across West Asia and triggering a prolonged confrontation involving Iran-backed groups in the region.While Washington and Tehran have been engaged in indirect peace negotiations for weeks, efforts to end the conflict suffered another setback after US President Donald Trump rejected Iran’s latest proposal, calling it “totally unacceptable”.Iran’s proposal reportedly sought an end to hostilities, removal of sanctions and restoration of shipping access in the Strait of Hormuz while postponing negotiations over its nuclear programme. However, the US insisted that Iran dismantle key parts of its nuclear infrastructure — a condition Tehran rejected.The war has already caused widespread damage across parts of Iran and Lebanon and sparked repeated drone and missile incidents across the Gulf region.Strait of Hormuz crisis and why it matters to IndiaAt the centre of the global energy crisis is the Strait of Hormuz - a narrow but strategically critical shipping route through which nearly one-fifth of the world’s oil and liquefied natural gas supplies normally pass.The waterway has remained partially disrupted for weeks due to military tensions, naval blockades, drone attacks and fears of strikes on commercial vessels.Reuters reported that maritime traffic through the strait has been severely affected, with tanker operators avoiding the region or switching off trackers amid fears of attacks.The disruption has sent crude oil prices soaring globally. Brent crude jumped over 4% after Trump rejected Iran’s latest peace response, intensifying concerns about prolonged supply shortages.For India, the impact is especially severe because a major share of the country’s imported crude oil passes through the Strait of Hormuz.Why Modi is pushing work-from-home againAgainst this backdrop, PM Modi's push for WFH is being seen as part of a broader fuel conservation strategy aimed at reducing India’s oil consumption and limiting pressure on foreign exchange reserves.“Today, the need of the hour is to use petrol, gas, diesel and such things with great restraint. We have to use imported petro products only as needed. This will not only save foreign exchange but reduce the adverse impact of war,” Modi said. The Centre fears that prolonged high crude prices could increase inflation, weaken the rupee further and widen India’s import bill.The rupee has already come under sharp pressure due to rising oil prices and foreign investor outflows. Market analysts warn that sustained crude prices above $100 a barrel could significantly impact India’s growth outlook.WFH arrangements could reduce daily fuel consumption by lowering office commuting, cutting aviation demand and decreasing road traffic.Modi also urged people to use metro rail networks, adopt electric vehicles, shift parcel transportation to railways and avoid unnecessary foreign travel.Also read: Why PM Modi asked Indians to avoid buying gold for a yearIndia’s push towards energy self-relianceAlongside conservation measures, Modi highlighted India’s push towards renewable and alternative energy sources to reduce dependence on imported fuels.The prime minister said India has emerged as one of the world’s leading solar power producers and has made rapid progress in ethanol blending with petrol.He also said the government is expanding piped gas infrastructure, strengthening the CNG ecosystem and promoting cleaner energy alternatives.Apart from fuel conservation, Modi also appealed to citizens to postpone gold purchases and non-essential foreign travel for a year to help conserve foreign exchange reserves during the global crisis.Congress attacks Centre over handling of crisisThe Opposition, however, criticised the government over the situation. Congress leader Rahul Gandhi termed Modi’s remarks “proofs of failure” rather than mere appeals for sacrifice, accusing the Centre of shifting the burden of the crisis onto ordinary citizens.In a post on X, Gandhi said, “Modi ji demanded sacrifices from the public yesterday — don't buy gold, don't go abroad, use less petrol, cut down on fertilizer and cooking oil, take the metro, work from home.”“These are not sermons, but proofs of failure,” he said. The Congress MP said that after 12 years in power, the government had pushed the country into a situation where citizens were being told “what to buy, what not to buy, where to go and where not to go.”“Every time, they shift the responsibility onto the people so they can escape accountability themselves,” Gandhi alleged, while also repeating his earlier “compromised PM” attack on Modi.