The Nitaqat law makes it mandatory for local companies to hire one Saudi national for every 10 migrant workers.
There has been widespread perception that the new policy will lead to denial of job opportunities for a large number of expatriates from India.
External Affairs Minister Salman Khurshid said whatever needs to be done will be done and that there was no need to panic.
He said the government is monitoring the situation through its Embassy and is ready to provide assistance to any Indian citizen who needs help.
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"If somebody has to go to some other country, they have to satisfy the rules and regulations of that country.
"Our Ambassador has been in touch with us"," the minister said adding that he is going to meet the Chief Minister of Kerala on April eight to discuss the issue while some MPs from Kerala met him today regarding the matter.