While India Inc believes that the Union government is unlikely to bring back a Covid-era lockdown during the ongoing West Asia crisis, the government is reportedly not mulling a work-from-home mandate either. CNBC-TV18 has quoted government sources which said no such proposal is being considered. PM Narendra Modi's appeal for austerity — reduce travel, work from home where possible, stop buying gold for a year — was exactly that: an appeal, not a policy order.

What's happening on the ground, however, is a different story.

Kerala pump operators cap fuel on their own

In Kerala, petrol pumps have started capping purchases at ₹5,000 per customer for petrol and 200 litres per transaction for diesel. This is not a state government order — Kerala is currently under a caretaker government, with Pinarayi Vijayan continuing as CM after his resignation on May 4. The new Congress-led UDF government has not yet been sworn in.

The cap is a decision reportedly by the Kerala state petroleum traders association and individual pump operators, driven by a sharp change in how OMCs are supplying fuel. Before the Iran war, pumps typically received tanker loads covering a week or more of sales. Now, OMCs are restricting supplies to roughly ₹12-15 lakh worth of stock per day — calibrated against each pump's average daily sales — giving dealers only about two days of buffer at any point. Any tanker delay, traffic jam or logistics hiccup now causes an immediate dry-out. The caps are meant to stretch available stock and prevent bulk buyers from clearing out a pump in one transaction.

Fuel distributors have clarified there is no formal nationwide shortage. But the Kerala state petroleum traders association said the restrictions are needed to ensure continuous availability — not to signal scarcity.

What PM Modi said — and why

At a rally in Hyderabad on May 10, PM Modi asked Indians to conserve fuel, use work-from-home where possible, avoid non-essential travel both domestic and international, and pause gold purchases and overseas trips for at least a year. He tied each ask directly to the Iran war and India's forex exposure.

India spent over $72 billion on gold imports last year. Brent crude is at $107 a barrel, WTI above $104. India imports over 85% of its oil. The rupee has hit record lows. Every dollar saved on gold imports, every trip avoided, every litre of fuel conserved directly reduces the current account pressure.

The Union government has already taken several step like extending the LPG cylinder rebooking window from 21 to 25 days in urban areas to curb hoarding. Kerosene sales were allowed through petrol pumps across 21 states for 60 days. Commercial LPG supply was capped at 20% below pre-crisis monthly averages. The Essential Commodities Act was invoked to prioritise household and transport fuel over industrial use.

India also raised the effective import duty on gold and silver to 15% from 6% was a targeted step to curb overseas buying and support the rupee at a time of elevated global stress. The hike makes bullion imports costlier, which can cool demand in the near term, but it also risks adding pressure to domestic jewellery prices and sentiment in listed jewellers and bullion-linked stocks.

Meanwhile, the Central Secretariat Service (CSS) has urged the government to issue comprehensive guidelines on work from home for government offices.

According to sources, Prime Minister Narendra Modi has asked the SPG to reduce the number of cars in his convoy, and has also pushed for greater use of electric vehicles in the convoy, with no new purchases, while all mandatory SPG security protocols remain fully in place.

India Inc's response

At the CII Annual Business Summit last week, the concern was palpable. Uday Kotak warned that India has not yet felt the full impact of the oil shock. "We haven't seen the impact of the war in two months, but now it's coming, and it's coming big," he said. A Kotak Institutional Equities note flagged that a prolonged Iran conflict could weigh on corporate earnings, widen the current account deficit and dampen foreign investor sentiment.

Sunil Bharti Mittal was equally direct. "We are not going to escape the difficulties," he said, urging India Inc to double down on domestic capex and stop waiting for global conditions to settle. Commerce Minister Piyush Goyal told that "business as usual cannot continue" and that companies need to shift sourcing toward domestic suppliers.

Shapoorji P. Mistry, the chairman of Shapoorji Pallonji Group has said the government has lauded the efforts taken by the Union government.

“In trying times such as these, India is fortunate to have a Prime Minister whose leadership brings clarity, confidence, and a sense of calm. Prime Minister Narendra Modi has once again shown the strength of steady conviction, national purpose, and unwavering resolve. His words are reassuring and deeply inspiring, reflecting the resilience and maturity that define India. In moments like these, leadership matters most and his leadership continues to strengthen the nation’s spirit and unity. India has always risen to every challenge with dignity and determination. Under his leadership, that spirit remains stronger than ever," Mistry said.

Across boardrooms, the response has been quiet but real. Travel budgets are being reviewed. International business trips are being rationalised. Companies in IT, consulting and financial services are quietly expanding hybrid arrangements — not because a government order compelled them to, but because fuel and forex stress makes it the sensible call. Several executives told publications covering the CII summit that they read the PM's message as short-term pain for long-term gains, and most said they are willing to absorb operational disruption to protect the macro picture.

Nasscom said the technology industry is already operating on hybrid models and that no policy reset is needed. Most IT companies have attendance mandates — TCS requires five days a week, Wipro three, HCLTech twelve days a month — and none has reversed them. But none has ruled out flexibility if conditions worsen.

Aviation and consumers

IndiGo and SpiceJet shares fell hard after PM made his foreign travel appeal, Airlines are caught between the Iran war squeezing their fuel costs and now the possibility of softer demand from official discouragement of international travel.

Consumer spending data points to a middle-market squeeze already underway — discretionary categories like dining out, non-essential fashion and premium electronics are softening, while EV demand and premium travel remain relatively resilient.