Will work from home make a comeback in India after PM Modi’s appeal?

Prime Minister Narendra Modi has urged a return to Covid-era measures as the 10-week-old war in Iran has sparked a global energy crisis. He stressed the revival of methods like remote work "in the national interest" to conserve fuel amid the conflict in West Asia.

Many countries, including Thailand and Pakistan, have already adopted work from home policies to ease pressure on energy demand. Will remote work make a comeback in India as well?

We take a deep dive.

WFH in India

On Sunday (May 10), PM Modi called on citizens to use petrol and diesel with restraint, reduce overseas travel, and halt gold purchases.

At a public meeting in Hyderabad, the Indian leader underlined that global fuel prices have surged and urged people to use public transport, work from home, and carpool to conserve fuel.

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"During the corona period, we adopted work from home, online meetings, video conferences, and developed many such systems. We had also become accustomed to them," Modi said.

"Today, the demands of the times are such that if we restart these systems, it will be in the national interest. We must prioritise work from home, online conferences, and virtual meetings again. We must also place a strong emphasis on saving foreign exchange, as petrol and diesel have become so expensive globally," he added.

India had adopted work-from-home policies during the Covid-19 pandemic. Offices, meetings and classes shifted online as the lockdown restricted outdoor travel and social distancing became the norm as coronavirus cases peaked.

In recent years, as normalcy returned, several companies around the world abolished remote work, even forcing employees to return to the office. Some companies, including those in India, have settled into a hybrid work model, which requires workers to be in the office for certain days of the week.

While the government has not mandated a WFH policy so far, PM Modi’s appeal could push companies to encourage remote work.

A revival of work-from-home in India could also depend on how long the conflict between the United States-Israel and Iran lasts. Despite over a month of ceasefire, a peace deal remains elusive.

President Donald Trump on Sunday rejected Iran's response to a US peace proposal, dubbing it “TOTALLY UNACCEPTABLE!”

His rejection sent oil prices further spiking on Monday amid concerns that the war in West Asia will drag on and shipping through the Strait of Hormuz will remain affected.

Before the conflict that Israel and the US launched against Iran on February 28, the narrow waterway carried one-fifth of the global oil and natural gas supply.

India imports about 85 per cent of its fuel needs. Nearly 50 per cent of its crude oil shipments pass through the Strait of Hormuz. It also relies on the vital chokepoint between Iran and Oman for 60 per cent of its liquefied natural gas (LNG), and roughly all of its liquefied petroleum gas (LPG) supplies.

As the Strait of Hormuz remains largely closed, India’s LPG imports reportedly witnessed a sharp decline in March and April.

The country is also expected to experience fuel price hikes as supplies remain disrupted. Higher energy costs could widen India’s trade deficit and current account deficit, as per CNBC.

Amid the economic pressure, PM Modi has urged citizens to cut fuel consumption. Reducing foreign travel and gold imports will help conserve India's foreign currency reserves as higher oil prices enhance pressure on the South Asian country's import bill.

Which other countries have adopted WFH?

Several countries, especially in Asia, have turned to remote work to ease pressure on energy demand amid the war in Iran.

Pakistan has mandated a four-day work week and partial remote work for public employees. While key sectors like banking are exempt, the government has suggested similar WFH measures for other private industries. The measures were brought to lower fuel consumption and protect the country's foreign exchange reserves.

Pakistan has also directed all educational institutions to shift to online classes to conserve fuel.

As a fuel-saving step, the Philippines, which receives around 95 per cent of its crude oil from West Asia, has ordered public workers to switch to a four-day work week. In March, President Ferdinand Marcos Jr had declared a national energy emergency, rolling out measures to stabilise supplies and protect the economy from increasing fuel costs.

To save fuel, Thailand’s energy minister asked public offices to set air conditioner temperatures at more than the usual 26 degrees Celsius. The Southeast Asian country also announced remote work for civil servants, with exceptions.

Thai Prime Minister Anutin Charnvirakul directed civil servants to conserve energy, including by suspending overseas trips and taking stairs instead of elevators.

Vietnam, which also heavily relies on imported fuel, requested businesses to adopt work from home following a significant rise in gasoline and diesel prices. “Businesses need to encourage work from home when possible to reduce the need for travel and transportation,” the Trade Ministry said in a statement in mid-March.

Malaysia has implemented a three-day-a-week WFH policy for ministries, agencies, statutory bodies and government-linked companies. The measure is applicable to only public servants in Putrajaya, Kuala Lumpur, Selangor and all state capitals who live more than 8 km from their offices. Those working in security, defence, health and education sectors are exempted.

Qatar briefly introduced a work from home arrangement soon after the war began, but it was later suspended. In late March, employees were asked to return to offices after weeks of flexible working announced earlier that month.

Indonesia has rolled out a one-day WFH for civil servants, who can work remotely every Friday as part of wider energy-saving measures. It has also put restrictions on buying fuel for private vehicle owners, capping it at 50 litres per day.

Beyond Asia, the European Commission has urged citizens to work from home, drive and fly less to conserve fuel.

With inputs from agencies