Prime Minister Narendra Modi on Saturday, 16th May, delivered one of his most serious warnings yet on the condition of the global economy, cautioning that the world is slowly slipping into what he described as a “decade of disasters.” Speaking during his visit to The Hague in the Netherlands, the Prime Minister said that repeated international crises are threatening to reverse decades of economic progress and could push millions of people back into poverty if urgent corrective steps are not taken.

PM Modi made these remarks while addressing members of the Indian community during the second leg of his five-nation tour across Europe. During the interaction, he spoke in detail about the growing instability affecting countries across the world and highlighted how multiple crises unfolding one after another are putting enormous pressure on global economies.

According to PM Modi, the world is no longer dealing with a single challenge at a time. Instead, nations are being forced to confront several major disruptions together, creating uncertainty in trade, energy supplies, inflation and economic growth.

“The world is dealing with new challenges,” Modi said during the event. Referring to the chain of global disruptions over recent years, he further stated, “First came the corona 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.”

His remarks reflected growing concerns within governments worldwide about the long-term economic consequences of continued geopolitical instability. The Prime Minister warned that the effects of these crises are not limited to a few countries alone, but could impact billions of people globally, especially poorer and developing nations that are heavily dependent on imports and external resources.

PM Modi further cautioned that unless the situation improves quickly, the achievements made over several decades in reducing poverty and improving living conditions could collapse under the pressure of inflation, shortages and economic disruptions.

“Achievements of the past many decades would be washed away, and a huge section of the world’s population would be pushed back into poverty,” he warned.

His statement came at a time when countries across the world are struggling with rising inflation, increasing fuel prices, supply chain disruptions and fears of a prolonged economic slowdown. Several economies are already facing pressure due to rising energy costs, while households in many nations are witnessing growing financial strain because of higher transportation, food and electricity expenses.

PM Modi urges citizens to adopt austerity measures

The Prime Minister’s warning also came against the backdrop of increasing concern inside India over inflation and the rising cost of essential commodities. Just days before beginning his Europe visit, PM Modi had appealed to citizens to voluntarily adopt austerity measures in order to reduce pressure on the country’s economy and conserve vital resources.

While speaking at an event in Hyderabad earlier this week, PM Modi encouraged people to make practical lifestyle adjustments that could help India manage the difficult economic situation more effectively. He advised citizens to work from home wherever possible, reduce unnecessary foreign travel and avoid excessive spending on non-essential items such as gold purchases.

The Prime Minister described the conservation of fuel and foreign exchange as an act of national responsibility and patriotism during challenging global conditions. He appealed to citizens to consciously reduce fuel consumption by using public transport more often, sharing vehicles through carpooling and limiting wasteful usage of fertilisers.

According to PM Modi, every small effort made by citizens could contribute towards reducing economic pressure during a period when global uncertainty continues to affect fuel availability and import costs.

Recalling the Covid pandemic period, he pointed out that people had already successfully adapted to remote work and limited travel during lockdown years. He suggested that similar habits could once again help reduce financial stress on the economy.

“We must make efforts to use only as much as is needed to save foreign currency and reduce the adverse effects of war crises,” he said.

His appeal reflected the government’s growing concern over the increasing burden caused by rising global crude oil prices and supply disruptions linked to international conflicts.

Fuel prices increased after nearly four years

The Prime Minister’s remarks also coincided with a major fuel price hike announced in India. On Friday, 15th May, state-run oil companies including Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum increased petrol and diesel prices by ₹3 per litre. This marked the first major increase in fuel prices after nearly four years without a significant hike.

Following the revision, petrol prices in Delhi rose to ₹97.77 per litre, while diesel prices reached ₹90.67 per litre. In several other states, fuel became even more expensive because of additional local taxes imposed by state governments.

Economic analysts and industry experts warned that the increase in fuel prices could trigger a wider chain reaction across sectors in the coming months. Higher fuel costs are expected to raise transportation expenses, which could eventually increase the prices of food items, household goods and manufacturing operations.

The ruling Bharatiya Janata Party defended the fuel price revision and argued that the government had already shielded consumers from the full impact of rising global oil prices for more than two months.

According to government leaders, public-sector oil companies had absorbed a significant portion of the increase in crude oil prices for nearly 76 days after tensions escalated in West Asia. Officials claimed that this had prevented a sharper and more immediate burden on ordinary citizens during the initial phase of the crisis.

However, opposition parties strongly criticised both the timing of PM Modi’s austerity appeal and the sudden fuel price increase. Several opposition leaders alleged that fuel prices had been deliberately kept unchanged during important state election campaigns despite lower international crude oil prices earlier.

The opposition argued that ordinary citizens were now being forced to bear the delayed burden of rising fuel prices at a time when inflation was already affecting household budgets across the country.

Global energy crisis continues to worsen

The ongoing energy crisis has now expanded far beyond India and is affecting countries throughout Asia and other parts of the world. Governments in multiple nations have already started taking emergency measures to manage shortages and reduce energy consumption.

The Philippines recently declared a national energy emergency as concerns over fuel supplies intensified. In South Korea, authorities advised citizens to reduce electricity usage by taking shorter showers and charging mobile phones during daytime hours to reduce pressure on the power grid.

Japan has also reportedly released emergency oil reserves in an attempt to stabilise fuel supplies and manage the growing shortage caused by disruptions in global oil transportation routes.

The situation worsened significantly after Iran closed the Strait of Hormuz, one of the world’s most critical oil transit routes. Nearly 20% of the global oil supply passes through this narrow maritime corridor, making it one of the most strategically important trade passages in the world.

India remains particularly vulnerable to any disruption in this route because the country imports nearly 90% of its crude oil requirements. Almost half of these imports traditionally pass through the Strait of Hormuz, making the Indian economy highly sensitive to developments in the region.

As tensions continue to rise globally, concerns are growing that prolonged instability in energy supplies could deepen inflation, slow economic growth and increase financial hardship for millions of people across both developing and developed nations alike.