India Urged to Address Economic Vulnerabilities Amid West Asia Conflict
EAC-PM calls for mapping economic vulnerabilities in food, other areas
Business StandardImage: Business Standard
S Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister of India, emphasized the need to map economic vulnerabilities in energy, food, and other sectors to mitigate impacts from global crises like the ongoing conflict in West Asia. He highlighted strategies to reduce import dependence and bolster domestic resilience.
- 01India must proactively address economic vulnerabilities in energy, food, and critical minerals.
- 02The ongoing West Asia conflict has led to a spike in crude oil prices, reaching USD 126 per barrel.
- 03Strengthening physical buffers, like strategic petroleum reserves, is essential for economic stability.
- 04India's GDP growth is projected at 6.7% for FY27, assuming crude prices stabilize at USD 95 per barrel.
- 05The rupee's decline is seen as a temporary issue due to global uncertainties.
Advertisement
In-Article Ad
S Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister of India, has called for a comprehensive mapping of economic vulnerabilities, particularly in energy, food, and critical minerals, to mitigate the impacts of crises like the ongoing conflict in West Asia. The conflict has caused crude oil prices to soar to USD 126 per barrel, up from USD 73 before the war began on February 28. Dev emphasized the importance of reducing dependence on imports through diversification of supply sources and strategic trade agreements. He noted that India must strengthen its physical buffers, including expanding strategic petroleum reserves and creating stockpiles of essential commodities. Despite the challenges posed by the West Asia crisis, Dev highlighted India's economic resilience, with a projected GDP growth of 6.7% for FY27 under a scenario where crude prices reach USD 95 per barrel. He also mentioned that the current account deficit is expected to remain manageable, although it may increase in FY27. The rupee's recent decline against the US dollar is viewed as a temporary issue rather than a structural problem, and Dev remains optimistic about foreign direct investment inflows, which are expected to reach USD 90 billion by 2025-26.
Advertisement
In-Article Ad
The mapping of economic vulnerabilities is crucial for ensuring food security and energy stability in India, which could affect prices and availability of essential goods.
Advertisement
In-Article Ad
Reader Poll
How should India address its economic vulnerabilities amid global crises?
Connecting to poll...
Read the original article
Visit the source for the complete story.

