India Urged to Build Reserves Amid Global Tensions: EY Report Highlights Strategic Needs

Amid global tensions and rising prices, EY advises India to expand strategic reserves of oil, fertilizers, and essential goods. The West Asia crisis underscores the need to safeguard the economy by reducing dependency on imports and enhancing domestic security, aiming to shield consumers from global supply shocks.

As geopolitical tensions escalate and global commodity prices surge, consultancy firm EY has advised India to strengthen its strategic reserves of crude oil, fertilizers, rare earth materials, and essential medicines. Its Economy Watch May 2026 report warns of potential vulnerabilities exposed by the ongoing West Asia crisis.

The report highlights India's reliance on imported energy and critical supplies, directly impacting fuel prices, inflation, and the availability of essential goods. It suggests a policy shift is necessary to shield the Indian economy and its consumers from future global disruptions.

EY emphasizes the importance of building larger reserves to provide protection against sudden price spikes in vital commodities during conflicts or supply disruptions. With India's strategic crude oil reserves currently covering only four to five days of consumption, the call for action is urgent.