Indian Prime Minister Narendra Modi is scheduled to visit five countries from May 15 through May 20, the foreign ministry said on Monday. The itinerary begins in the United Arab Emirates on May 15 before continuing to the Netherlands, Sweden, Norway and Italy.
The ministry framed the trip against a backdrop of rising global oil prices that have put pressure on India’s foreign currency reserves. As a net energy importer, India faces an elevated risk from higher crude costs, which can affect external balances and domestic economic indicators.
Modi has recently urged measures aimed at reducing energy demand, including calls for fuel conservation, cutting back on imports and gold purchases, and curbing travel. Those appeals reflect concerns about the strain higher energy prices place on the nation’s foreign exchange position.
During his stop in the UAE, Modi will hold discussions with President Mohammed bin Zayed Al Nahyan. The foreign ministry said bilateral ties - with an emphasis on energy cooperation - will be central to their talks, along with regional and international topics of mutual interest.
The foreign ministry statement linked the jump in global oil prices to the Middle East crisis, saying that higher energy costs have contributed to pressures on India’s foreign currency reserves. Officials have highlighted the potential consequences of sustained oil price increases for the country’s economic outlook.
Context and implications
Rising crude prices have the potential to widen India’s current account deficit, a risk explicitly noted by the foreign ministry. The statement also tied higher oil costs to the possibility of slower economic growth and an uptick in inflation - outcomes that would have ramifications across sectors dependent on energy and trade flows.
As the government seeks to limit external vulnerabilities, the prime minister’s trip includes a focus on energy partnership with a key Gulf supplier. Beyond energy, the meetings are intended to cover a range of bilateral, regional and international matters, as outlined by the ministry.