India's economic policy this week was significantly influenced by global market volatility, particularly in energy prices due to tensions in West Asia. Finance Minister Nirmala Sitharaman highlighted how rising crude oil, gold, and fertilizer prices are straining the country's foreign exchange reserves and inflation outlook. The government responded by waiving customs duties on cotton imports to support the textile industry and extending the SARTHAK-PDS food distribution scheme, which has a budget of ₹25,530 crore. Additionally, fuel prices continued to rise, with CNG in Delhi increasing by ₹5 per kg since mid-May, raising concerns about inflation driven by energy and food costs. India's trade dynamics are also shifting, with a notable increase in Russian crude imports and a rise in finished steel imports, indicating strong domestic demand. The ongoing trade negotiations with the US could further reshape India's economic landscape as it seeks to navigate these challenges.