Nationalist Congress Party (SP) leader Sharad Pawar warned on Tuesday (May 12, 2026) that Prime Minister Modi’s austerity appeal indicates a long-term impact on the Indian economy and demanded an all-party meeting to discuss the instability caused by the West Asia conflict.

“Due to the sudden nature of Prime Minister Narendra Modi’s announcements, the economy is likely to face far-reaching impacts, creating an atmosphere of unease among citizens, the industry-business sector, and investors,” said Mr. Pawar, also former Chief Minister of Maharashtra.

He demanded that Mr. Modi convene an all-party meeting under his own chairmanship, given the “seriousness” of this issue. “He should involve leaders from all parties in the decision-making process on matters of national interest for the welfare of the country,” Mr. Pawar posted on X.

PM Modi’s call for cut back

Two days ago, during an event in Hyderabad, Mr. Modi, appealed to citizens to cut back on fuel, gold, and edible oil due to the West Asia conflict.

He also recommended that the Central Government prioritise greater sensitivity and consult prominent economists and industry experts to handle the emerging instability. 

The Maharashtra Navnirman Sena (MNS) chief Raj Thackeray also questioned Mr. Modi’s appeal and pointed to the impact on foreign institutional investments.

“Investors have been steadily pulling money out of the Indian markets. Estimates suggest that nearly ₹1.5 lakh crore has exited over the past few months,” he added.

Citing the 2008, 2011, and 2013 financial crises, Mr. Thackeray said, “Crude oil today is hovering around $90–100 per barrel. This is not the first time the world has seen such prices. When prices were high in the past, the BJP had attacked the UPA aggressively on fuel prices. . However, Dr. Manmohan Singh never asked citizens to stop travelling abroad.”

“When crude prices fell to $60–65 per barrel, why were citizens paying high prices for petrol and diesel. The government earned lakhs of crores through fuel taxes. Where did that money go?” he asked. 

Maharashtra Chief Minister Devendra Fadnavis backed PM Modi. He said that India is doing better compared to neighbouring countries. “In Pakistan, petrol prices have reached 450 per litre. The PM has created a stable environment.”