India, March 4 -- As stock prices drop like hot potatoes, crude oil surges like a mega gush, and the rupee takes a massive beating, the Indian policy-makers have devised a multi-faceted strategy to counter the Iran-Israel-US-Middle-East crisis that has engulfed the entire world. The short-term solutions range from lower exports, and higher output to increase local supplies, higher dependence on the US and Russia (despite American protests) for oil offtake, and means to arm-twist domestic users to consume less. However, the latter may create a new cycle of destruction, as India will trade-off one set of crises with another one.

First, let us examine the solutions, and then we will look at the possible repercussions. Although India is a bu...