India has stepped up supply of smaller 5-kg LPG cylinders and accelerated the rollout of piped natural gas (PNG) connections to manage fuel availability amid disruptions caused by the Middle East conflict, with domestic supplies remaining stable, according to an official statement.More than 13 lakh 5-kg free trade LPG cylinders have been sold since March 23, with daily sales crossing 1 lakh units, as authorities expand access for migrant workers and low-income consumers, PTI reported.At the same time, over 4.24 lakh new PNG connections have been activated since March, with more than 30,000 consumers surrendering LPG connections as part of the transition.The six-week-long war in West Asia has disrupted global energy supply. India relied on import of half of its crude oil, 40 per cent of its gas and 85-90 per cent of LPG from the region, all of which have been impacted.While the country has managed to offset the shortfall in crude oil by sourcing from other regions, LPG supplies have been affected.The government has prioritised LPG supply to domestic households, reducing supplies to commercial users such as hotels and restaurants. To bridge the gap for those without subsidised LPG connections, it has increased supply of market-priced 5-kg cylinders.As against daily sales of about 77,000 5-kg cylinders in February before the crisis, volumes have crossed over 1 lakh per day in the last two to three weeks.The statement said domestic LPG supplies remain stable overall, with no reported stockouts and over 52 lakh cylinders delivered on April 11.Online bookings account for about 98 per cent of demand, while delivery authentication systems now cover 93 per cent of transactions to curb diversion.Commercial LPG availability has been restored to about 70 per cent of pre-crisis levels, supported by targeted allocations and increased supply measures. State-run oil marketing companies — Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited — are coordinating with state governments to streamline distribution.The government has prioritised natural gas allocation, ensuring full supply for household PNG and CNG transport, while increasing supplies to fertiliser plants to about 95 per cent of recent average consumption, aided by additional LNG imports.City gas distributors, including Indraprastha Gas Ltd, Mahanagar Gas Ltd, and GAIL Gas Ltd, have been directed to prioritise PNG connections for commercial users, as part of a broader push to shift demand away from LPG.Refineries are operating at high utilisation with adequate crude inventories, and domestic LPG production has been stepped up. To shield consumers from rising global oil prices, the government has cut excise duty on petrol and diesel by Rs 10 per litre, while raising export levies on diesel and aviation turbine fuel to ensure domestic availability, the statement added.

Top finance officials from around the world will convene in Washington this week under the shadow of the war in the Middle East, which has delivered a third major shock to the global economy after the COVID ​pandemic and Russia’s full-scale invasion of Ukraine in 2022.

Top officials at the International Monetary Fund (IMF) and the World Bank last week said they would downgrade their forecasts for global growth and raise their inflation forecasts as a result of the war, warning that emerging markets and developing countries will be hit hardest by higher energy prices and supply disruptions.

Before the Iran war broke out on February 28, both institutions had expected to lift their growth forecasts given the resilience of the global economy, even in the wake of major tariffs imposed by US President Donald Trump beginning last year. But the war has delivered a series of shocks that will slow progress on recovering growth and beating back inflation.

The World Bank’s baseline estimate now projects growth in emerging ​markets and developing economies of 3.65% in 2026, down from 4% in October, but sees that number dropping as low as 2.6% if the war lasts longer. Inflation in those countries was now forecast ​to hit 4.9% in 2026, up from the previous estimate of 3%, and could spike as high as 6.7% in the worst case.

The IMF warned last week that ⁠about 45 million additional people could also face acute food insecurity if the war persists and continues to disrupt fertiliser shipments needed now.

The IMF and World Bank are racing to respond to the latest crisis and support vulnerable ​countries, even as public debt levels have reached record highs and budgets are tight.

The IMF said it expects demand for $20 billion to $50b in near-term emergency support to low-income and energy-importing countries. The World Bank has said ​it could mobilise some $25b through crisis response instruments in the near-term, and up to $70b in six months, as needed.

But economists are urging governments to use only targeted and temporary steps to ease the pain of higher prices for their citizens, since broader measures could fuel inflation.

“Leadership matters, and we’ve come through crises in the past,” World Bank President Ajay Banga told Reuters, lauding work on fiscal and monetary controls that had helped economies weather previous storms. “But this is a shock to the system.”

Countries now face a ​tough balancing act, managing inflation while keeping an eye on growth and the longer-term challenge of creating enough jobs for the 1.2 billion people who will reach working age in developing countries by 2035.

IMF and World Bank also ​face a far different global landscape with tensions running high between the United States and China, the world’s largest economies, and the Group of 20 major economies hobbled in its ability to coordinate a response.

The United States currently holds the rotating presidency ‌of the ⁠G20, which also includes Russia and China, but it has excluded another member, South Africa, from participation, complicating the group’s ability to coordinate on this crisis.

“You’re trying to operate on consensus when there’s no consensus in the world right now on anything,” said Josh Lipsky, chair of international economics at the Atlantic Council.

Lipsky said statements by the IMF, World Bank and other multilateral lenders about their readiness to support countries hit hard by the war were clearly aimed at reassuring markets.

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“It’s a signal to private creditors. This is not a time to flee countries that are in problematic waters. They will have support from the multilateral development banks and the international financial institutions. This is not going ​to be COVID. This is something that we can handle.”

Tougher conditions for many

Mary Svenstrup, a former senior US Treasury official now with the Centre for Global Development, said many emerging market and developing economies entered the crisis worse off than just a few years ago, with lower buffers, higher debt vulnerabilities and lower reserves.

“We need to have this crisis be a catalyst for IMF stakeholders to really rethink how the Fund supports vulnerable countries with the recognition that ​we’re going to be seeing more global shocks,” she said. “We can’t ask them to sacrifice growth and development for the sake of rebuilding buffers.”

Svenstrup said countries should ​pursue more ambitious reforms if ⁠they received fresh funds. “There probably does need to be more financial support from the [international financial institutions] but it needs to be affordable, and it needs to be in the context of reform programs and potentially broader debt relief,” she said.

Martin Muehleisen, a former IMF strategy chief who is now with the Atlantic Council, agreed, saying the IMF should work with donor countries to accelerate debt restructuring for borrowers and “get them off the debt cycle”. New lending should be tied to a credible ⁠debt-reduction road map, ​he said.

Eric Pelofsky, vice president at the Rockefeller Foundation, said low-income and lower middle-income countries paid twice the amount to service their debts ​in 2025 than before COVID, limiting funds for education, health care and other critical social programs. Half were now in or near debt distress, up from a quarter, just a few years ago.

“This new conflict threatens any recovery that occurred since the pandemic or the Ukraine war, ​and it takes countries that have basically been treading water, trying to stay away from default, and keeps them in a long-term debt-growth-investment trap,” he said.

With the production-linked incentive (PLI) scheme now over, India’s electronics industry has pitched a fresh expansion plan, seeking continued government support as it eyes a strong jump in manufacturing and exports over the next five years. During discussions with the ministry of electronics and IT (MeitY), the industry said that by FY31, India could capture 30–35% of global mobile production. This would take annual output to $110–130 billion, with exports estimated at $55–70 billion. At present, according to ET, India accounts for about 15% of global mobile phone production, with manufacturing output exceeding $64 billion. Industry executives said the current production-linked incentive (PLI) scheme has played a key role in this growth. With the scheme set to end on March 31, companies are pushing for a new version to keep the momentum going. Talks are underway on a proposed PLI 2.0 scheme, which is likely to run from 2026 to 2031. Government officials said a new incentive programme is being considered, though details have not yet been finalised. The industry has also shared a roadmap with the government to meet production and export targets by FY31. “With a strong foundation, we have an opportunity to achieve 30-35% of global mobile production in the next five years,” Pankaj Mohindroo, chairman of India Cellular and Electronics Association (ICEA), told ET. “To realise this ambition, it is critical to sustain the current momentum and continue investments. We are actively engaging with the government to shape the next phase of this growth journey.” Industry players said increasing India’s global share would help strengthen the supply chain, deepen the manufacturing ecosystem and support research and development at scale. One executive said scale is more important than value addition alone for long-term sustainability. The government is also examining how much domestic value addition should be required for incentives and how exports can be increased without breaching World Trade Organization norms. Experts said the growth in production will depend largely on exports, as domestic demand is expected to weaken. India’s smartphone market could shrink by more than 13% this year due to rising memory costs, which may push device prices up by 15–40%, according to an earlier report. Data from the commerce ministry showed smartphone exports rose 47.4%, from $20.44 billion in 2024 to $30.13 billion in 2025. The United States accounted for $19.7 billion, or 65% of total exports. Meanwhile, China’s smartphone exports fell from $132.6 billion to $120.6 billion during the same period, with shipments to the US declining sharply due to fentanyl-related tariffs. India’s tariff advantage in the US market has narrowed after the US Supreme Court struck down sweeping global tariffs imposed by the Trump administration. China continues to have an advantage due to its strong supply chain and advanced manufacturing capabilities, while India is still developing these.