Chief Economic Advisor V Anantha Nageswaran stated that India must create strategic buffers to address the severe energy shock resulting from the ongoing crisis in West Asia. He highlighted that crude oil prices have surged to $126 per barrel, a significant increase from $73 prior to the conflict. This rise in prices, along with the global increase in fertilizer costs, poses challenges to achieving the 4.3% fiscal deficit target for the current fiscal year. Nageswaran warned that inflation could spike due to higher energy prices and below-normal monsoon conditions. He noted that the current account deficit (CAD) could rise to over 2% of GDP, up from less than 1% in FY'26. The advisor stressed the importance of building strategic buffers against import dependencies, particularly for materials like nickel, tin, and copper, to strengthen India's manufacturing capabilities. He also mentioned the need for the IT sector to adapt to the challenges posed by artificial intelligence, ensuring job creation rather than loss. Nageswaran concluded that the geopolitical landscape necessitates a nimble approach to policy-making, as the conflict in West Asia represents a persistent price shock rather than a supply shock for India.