The world is getting riskier. Here’s what the Finance Ministry says India should prepare for

The Finance Ministry’s July Economic Review has flagged a range of emerging global risks to India’s economy, saying persistent geopolitical tensions, rising crude oil prices, rapid advances in artificial intelligence and the weaponisation of supply chains could weigh on growth and macroeconomic stability in the years ahead.The review said the recent resurgence in global crude oil prices, if sustained, could once again put pressure on the government’s fiscal deficit as well as India’s current account balance. It added that the continuing stand-off in the Gulf region poses upside risks to inflation, the fiscal and current account deficits, while also creating downside risks to economic growth.Beyond immediate geopolitical challenges, the review said developments in artificial intelligence and the weaponisation of supply chains underscore the distance India still needs to travel to build long-term economic resilience and strengthen its strategic leverage.Against this backdrop, the Finance Ministry said swifter policy responses and faster implementation would be critical to encourage both domestic and foreign investment and help the economy navigate an increasingly uncertain global environment.”Recent years have been a time for hunkering down and battening down the hatches. Coming years will be no exception,” the review said, signalling that policymakers expect global economic uncertainty to remain elevated for the foreseeable future.(Edited by : Prashant)First Published: Jul 29, 2026 6:49 PM IST

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