Prime Minister Narendra Modi's recent appeal to citizens to cut discretionary spending and conserve energy amid the ongoing conflict in West Asia reflects increasing pressure on India's fiscal position, as noted by Nomura Holdings. The firm suggests that the government's measures, such as excise duty cuts on petrol and diesel, while aimed at keeping inflation low, have exacerbated India's fiscal and current account deficits. Nomura estimates the fiscal deficit will reach 4.6% of GDP in FY27, exceeding the Union Budget target of 4.3%. Additionally, the current account deficit is projected to widen to 2.4% of GDP in the same period. The brokerage highlights that state-run oil marketing companies are incurring losses of nearly ₹30,000 crore monthly due to unchanged fuel prices, which may lead to a hike in retail prices. If citizens adopt conservation measures, the government might avoid significant policy changes, but Modi's remarks suggest preparations for potential interventions to alleviate fiscal pressures. Possible measures include discouraging non-essential imports like gold and tightening remittance rules. Nomura warns that a 10% increase in fuel prices could elevate inflation by 0.5 percentage points, prompting the Reserve Bank of India to remain vigilant against inflationary pressures.