Rahul Gandhi Criticizes Modi Over Economic Impact of West Asia Conflict
Opposition Leader's Concerns
On Monday, Opposition leader Rahul Gandhi accused Prime Minister Narendra Modi of lacking the courage to address the detrimental effects of the West Asia conflict on India's economy.
Gandhi stated that the ongoing conflict is severely harming the economy, asserting that Modi's reluctance to discuss these issues reflects his compromised position. He expressed these views to reporters outside Parliament.
According to Gandhi, the stock market is experiencing significant declines, LPG prices are increasing, and global crude oil prices are reaching unprecedented heights, all of which are directly affecting ordinary citizens, household finances, and small to medium enterprises.
He further claimed, "Prime Minister Modi is being blackmailed and has no choice but to sacrifice the interests of the Indian populace. He will avoid addressing these issues in Parliament."
Gandhi emphasized that there is a struggle underway that could lead to substantial economic losses, referencing the recent turmoil in the stock market and Modi's signing of a deal with the United States.
He warned that the nation is poised to face significant repercussions, questioning why these matters cannot be openly discussed.
On the same day, the Opposition staged a walkout in Parliament, protesting the government's refusal to allow MPs to pose questions following a briefing by External Affairs Minister S. Jaishankar regarding the conflict. The Congress party is demanding a thorough discussion on the war.
Since February 3, Gandhi has been vocal about his belief that Modi is compromised, alleging that he has betrayed the farmers of India by yielding to U.S. pressure to finalize a trade agreement.
On Friday, he criticized the Modi administration's foreign policy, describing it as a product of the exploitation of a compromised leader.
On Saturday, the price of liquefied petroleum gas was raised by Rs 60 per domestic cylinder due to fluctuations in global energy costs linked to the West Asia conflict.
On Monday, the Indian stock market continued its downward trend, with the benchmark Sensex index dropping approximately 1,400 points, or 1.8%. The Nifty index fell by 1.7%, closing just above the 24,000 mark.
The decline in the Indian market and other Asian economies began on March 2, coinciding with the onset of the conflict.
The India VIX index, which gauges market volatility, surged over 17.5% on Monday.
Global oil prices surpassed the $100 per barrel mark on Monday, reaching their highest level since July 2022. Brent crude prices peaked at $116 per barrel before settling around $104, compared to $72.8 per barrel on February 27, just before the conflict erupted.
Since the conflict began, oil prices have surged by nearly 50%.
The escalating tensions have raised concerns about potential disruptions to shipments through the Strait of Hormuz, a crucial maritime route that facilitates about 20% of global petroleum liquids consumption.
The conflict in West Asia escalated following attacks by Israel and the U.S. aimed at undermining Iran's capabilities. In retaliation, Tehran targeted Israeli and U.S. military installations in the region, as well as major cities in other Gulf nations.
These joint operations by Israel and the U.S. have occurred amid rising tensions over Iran's nuclear program, with Washington serving as a guarantor of Israel's security. Israel has expressed concerns that Iran is nearing the capability to develop a nuclear weapon, which could disrupt the regional security landscape.
Tehran has consistently asserted that its nuclear ambitions are solely for peaceful purposes.