Iran War Strain: India Weighs WFH, Austerity Due to Energy, Economic Toll

Will work-from-home norms make a comeback? Back in 2020, India announced a nationwide lockdown in the wake of the Covid-19 pandemic, prompting companies to pivot to work-from-home arrangements. With time and the pandemic being a thing of the past, most companies returned to the old regime or adopted a hybrid setup. Now, it appears that India Inc. may again go back to the WFH regime following a new appeal from Prime Minister Narendra Modi.

The heart of the matter is Modi’s new speech where he advised citizens to practice austerity in order to help the country preserve foreign reserves and reduce the burden caused by the ongoing Middle East conflict. 

With India being one of the import-dependent large economies, the impact is gradually making its way to different industries. Already, there have been price surges in select categories/applications of oil and gas.

Modi’s proposed austerity measures include postponing foreign trips and buying gold for some time, focus on buying local products, and reduce consumption of oil. He also called for working from home in his appeal. 

“…During the Corona period, we adopted work from home, online meetings, video conferences, and developed many such systems. We had also become accustomed to them. Today, the need of the hour is that we restart those practices, as it would be in the national interest, and we must once again give them priority,” he said in a public event in Hyderabad. 

“Today, the need of the hour is that we restart those practices, as it would be in the national interest, and we must once again give them priority,” he added.

It may be recalled that the long spell of crisis in the Middle East has led to rising global energy prices around the world. Several economies have already increased prices of fuel and gas in their respective countries. Meanwhile, gold prices have continued to fluctuate.

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Responding to the PM’s appeal, the industry body Nasscom said that the technology industry in India continues to operate on well-established hybrid work models, with organisations calibrating work-from-home and in-office arrangements based on role requirements and customer needs. 

“In light of the ongoing Middle East tensions, companies have adopted prudent energy management measures across campuses, including optimising non-essential consumption, rationalising select facility services, and enabling remote or hybrid work where operationally appropriate to reduce overall energy usage and commuting,” it added.

Nasscom also noted that these measures are not new but are part of the industry’s broader approach to operational resilience and sustainability. India’s technology sector has well-established business continuity frameworks and distributed delivery models, which enable seamless operation with flexibility when required while ensuring uninterrupted service delivery. 

“While this remains an evolving situation, we are closely monitoring developments and remain engaged with industry stakeholders and government authorities to ensure a coordinated and responsible response,” it said.

In a statement to Entrepreneur India, Gaurav Moda, Partner and Energy Sector Leader, EY-Parthenon India said: “Given nearly 80% of our oil is imported, and major domestic discoveries still some time away, optimizing each of our fuel usage even by a small margin could give India a huge advantage at scale to deal with ongoing geopolitics on the front foot. We as Indians have done it several times in the past for our country on ask from our leaders, worthwhile to consider again for collective benefit, on the back of this imperative set by Honorable PM.”

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Athar Shahab, Managing Director of Zuari Industries, added that India cannot build long-term economic resilience while remaining heavily dependent on imported crude. Global oil volatility directly impacts inflation, logistics, industrial costs, fiscal stability, and the current account.

The strategic direction is clear: India has to progressively move toward electricity and alternative domestic fuels.

Shahab also noted the adoption of ethanol as an important pillar of India’s energy transition. 

“It strengthens energy security, reduces import dependence, supports farmers and creates rural industrial capacity. Alongside electrification, it offers India a practical and scalable pathway to diversify its energy basket while lowering exposure to external shocks.

At a time of global uncertainty, every litre of fuel replaced through domestic energy solutions improves national resilience. The challenge now is to sustain policy momentum and accelerate the transition with long-term clarity and consistency,” he added.