India directs state-run banks, insurance firms to cut costs, shift to EVs

India’s finance ministry directed state-run banks, insurers and financial institutions on Monday to implement cost-cutting measures, ​including sharp curbs on travel and a phased transition ‌to electric vehicles, according to an order reviewed by Reuters.

The order, part of a broader austerity push, will cover institutions like the State Bank ​of India, Bank of Baroda and Life Insurance Corp ​of India and million of their employees across the country.

Under ⁠the new measures, all meetings, reviews and consultations must be ​conducted via video conferencing unless physical presence is deemed essential, the ​order issued by the Department of Financial Services said.

Foreign travel by top executives of the organisations – including chairpersons, managing directors and chief executive officers – should ​be kept below prescribed limits, with overseas engagements to be ​attended virtually wherever possible, it said.

Separately, the government has asked the organisations to ‌accelerate ⁠adoption of electric vehicles.

“All organisations may aim at replacing the petrol and diesel vehicles hired by them in their head offices and branch offices by electric cars as far as possible,” the ​order said.

The move ​follows a ⁠call last week by Prime Minister Narendra Modi urging officials to follow austerity and exercise restraint in ​spending, as the government braces for the economic fallout ​from ⁠rising global tensions.

Prolonged Middle East conflict risks slowing growth, stoking inflation and straining the balance of payments, with the Indian rupee already at ⁠record lows ​as Asia’s worst performer this year.

Several ​Indian states have directed employees to work from home two days a week as ​part of cost-cutting efforts.