War Disrupting Supply Chains Despite India’s Resilience: Nageswaran
CEA says war disrupts supply chains despite India’s economic resilience.
India’s economy remains resilient despite global uncertainties, but ongoing geopolitical conflicts are beginning to disrupt supply chains, Chief Economic Advisor V Anantha Nageswaran has said, cautioning that external shocks could pose near-term challenges.
Speaking on the broader economic outlook, Nageswaran noted that while domestic fundamentals remain strong, global developments — particularly conflicts affecting key trade routes and energy markets — are creating ripple effects across supply chains. These disruptions, he said, could impact the availability and cost of critical inputs for industries.
The Chief Economic Advisor emphasised that India has so far demonstrated resilience due to stable macroeconomic conditions, robust demand, and ongoing policy support. However, he acknowledged that the interconnected nature of global trade means that prolonged disruptions could influence inflation, logistics, and production cycles.
Also Read: DMK Alleges Palaniswami Upset Over Alliance Strategy Missteps
He pointed out that sectors dependent on imports, including energy and manufacturing, are especially vulnerable to supply-side shocks. Rising freight costs, delays in shipments, and uncertainty in commodity markets are among the key risks being closely monitored by policymakers.
Despite these concerns, Nageswaran expressed confidence in India’s ability to navigate the challenges, citing efforts to diversify supply sources, strengthen domestic manufacturing, and improve infrastructure. Initiatives aimed at boosting self-reliance and reducing dependency on external inputs are expected to provide a buffer against global volatility.
The remarks come at a time when geopolitical tensions have led to fluctuations in crude oil prices and disruptions in major shipping routes, affecting economies worldwide. For India, which relies heavily on imports for several critical resources, maintaining supply chain stability remains a key priority.
Looking ahead, the government is expected to continue focusing on structural reforms and policy measures to sustain growth while mitigating external risks. Nageswaran underscored the importance of vigilance and adaptability, noting that while resilience is evident, the global environment remains uncertain and requires careful economic management.
Also Read: Vaishnaw Says Railways Saved Rs 6,000 Crore Via Electrification
