The ongoing conflict in Iran has led to increased volatility in global oil prices and trade disruptions, prompting the Indian government to take proactive measures to stabilize its economy. A report from Fitch Ratings' unit, BMI, indicates that New Delhi will implement policies aimed at securing essential supplies, containing business costs, and expanding financial support for firms. Key actions include invoking the Essential Commodities Act to prioritize the supply of natural gas and increasing coal generation to offset the impact of rising energy costs. Additionally, the government has proposed an Economic Stabilisation Fund of ₹1 lakh crore (approximately $12 billion USD) to expand subsidies on energy and fertilizers, which are critical for agriculture and industry. Furthermore, a credit guarantee scheme for small and medium enterprises, valued at ₹2-2.5 trillion (around $24-30 billion USD), is being developed to protect jobs and stimulate economic demand. Despite these measures, the fiscal deficit is projected to remain at 4.5% of GDP for FY2026/27, with potential pressures from the government's response to the Iran conflict.