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.
"There is a meeting with Vayalar Ravi and E Ahmad tomorrow (Tuesday). We will review this and whatever needs to be done will be done. I think we should not allow this to cause any panic. This is routine stuff that every country does periodically. Whatever assistance is required to any one will be provided," Khurshid said.
He said the government is monitoring the situation through its Embassy and is ready to provide assistance to any Indian citizen who needs help.
"If somebody has to go to some other country, they have to satisfy the rules and regulations of that country. There is a discussion to implement the law. If there is any inconvenience or any distress is caused to any Indian citizen, whatever assistance we can give, we will provide," he said.
"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.
Home is where America is! 10 million Indians want to move
Congress washes hands of Beni-Mulayam spat
Cong mulls over candidates to lead party in K'taka polls
Probe into Italian marines case handed over to NIA
Centre REJECTS TN assembly resolution on Sri Lanka