India's government has directed state-run banks to adopt electric vehicles and video conferencing as part of broader austerity measures aimed at reducing fuel consumption and preserving foreign exchange reserves. The May 18 directive requires all state financial entities to transition their vehicle fleets to electric power while limiting overseas travel through virtual meetings.

The rupee has declined 6.7% against the dollar this year, pressured by rising energy costs and global tensions. India's position as Asia's third-largest oil importer makes it particularly vulnerable to supply disruptions from the Middle East crisis, where the Strait of Hormuz remains effectively blocked for over two months.

State refiners recently increased petrol and diesel prices for the first time in four years, while the government doubled import duties on gold and silver to protect foreign reserves. Authorities are also considering reduced tax rates on India bonds to attract foreign capital inflows amid mounting economic pressures.

These measures reflect New Delhi's urgent response to balance energy security concerns with fiscal discipline, as external pressures threaten India's fragile economic recovery.