In Netherlands, Modi warns global crises could push millions into poverty

At a time when the global economy is grappling with the fallout of escalating tensions in West Asia, Prime Minister Narendra Modi has warned that the combined impact of the Covid-19 pandemic, ongoing wars and the energy crisis could undo decades of global progress.

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Addressing the Indian diaspora in the Netherlands during the second leg of his five-nation European tour, Modi said the world is facing an era of overlapping crises that could push millions back into poverty if corrective measures are not taken swiftly.

Word of caution

“The world is dealing with new challenges,” Modi said at a community event in The Hague. “First came the coronavirus pandemic; then wars began to break out, and now there is an energy crisis. This decade is turning into a decade of disasters for the world.”

He cautioned that unless the global situation stabilises rapidly, the gains achieved over the past several decades could be severely undermined.

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Modi also stressed that the current global disruptions underline the importance of self-reliance for every nation, particularly in areas such as energy security, supply chains and economic resilience.

Austerity measures

The remarks come against the backdrop of austerity and fuel conservation measures that the Prime Minister had appealed for before beginning his multi-nation visit.

Last week, Modi urged citizens to adopt work from home practices wherever possible, reduce overseas travel and limit gold purchases as part of efforts to conserve fuel and protect foreign exchange reserves.

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He described fuel conservation and saving foreign exchange as an act of “patriotism” and encouraged greater use of public transport, carpooling and lower fertiliser consumption.

Energy crisis

The appeal was followed by a Rs 3-per-litre increase in petrol and diesel prices announced by state-owned oil companies on Friday (May 15), the first retail fuel price hike in four years.

The ongoing energy crisis has been triggered largely by Iran’s closure of the Strait of Hormuz, one of the world’s most critical maritime oil routes through which nearly 20 per cent of global oil trade passes. The International Energy Agency has described the disruption as one of the most severe supply shocks in the history of the global oil market.

India-Netherlands ties

Speaking about India’s partnership with the Netherlands, Modi said both countries are working together to build trusted, transparent and future-ready supply chains capable of withstanding global disruptions.

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He also highlighted the role of the Indian diaspora, saying the community is uniquely positioned to bridge India’s development ambitions with European standards and innovation ecosystems.

Modi urged the diaspora to contribute towards mitigating economic challenges and supporting India’s “Viksit Bharat 2047” vision.