The government clarified that there are currently no proposals to enforce work-from-home setups for the IT sector following Prime Minister Narendra Modi’s call to reduce fuel consumption amidst rising fuel prices. The IT industry has widely embraced hybrid work models post-pandemic, and no formal directive is under consideration, as per sources cited by NDTV Profit. Policy decisions regarding mandatory remote work fall within the Labour Ministry’s jurisdiction, with no imminent actions planned.
PM Modi’s plea to conserve fuel, revive work-from-home practices, curtail non-essential spending, and avoid overseas travel aims to assist India in navigating economic challenges amid ongoing geopolitical tensions. Emphasizing India’s reliance on imported fuel, PM Modi highlighted that cutting fuel usage could safeguard valuable foreign exchange reserves amidst surging global energy costs. He encouraged citizens to refrain from destination weddings and foreign trips, advocating for domestic tourism and local celebrations.
RBI Governor Sanjay Malhotra warned that if the Middle East conflict persists, India might have to raise petrol and diesel prices due to escalating crude oil costs globally. The Governor noted that soaring energy prices due to the Iran conflict are straining India’s flexible inflation targeting, potentially requiring intervention by the Reserve Bank. The central bank’s upcoming monetary policy meeting on June 5 will determine key interest rates, currently unchanged to stimulate economic growth.
Malhotra indicated that increasing retail fuel prices is inevitable if the West Asia crisis lingers, leading to higher transportation expenses and inflation. A report from Crisil Ratings projected Brent crude to average $90-95 per barrel in FY27, marking a 32% year-on-year increase.
