Washington: India’s top economic adviser on Wednesday cautioned about the impact of rising oil prices on the global economy and said normalisation could take longer.
Addressing a conference organised by the US-India Strategic Partnership Forum here, Chief Economic Anantha Nageswaran said the impact of the global conflict may be felt in four broad areas – higher energy prices, supply disruptions in other commodities, rising logistics and insurance costs, and a decline in remittance flows.
“So I think that we need to be more patient in the conflict cessation and the resumption of economic activity as per normal, that we may call it,” Nageswaran said, addressing the US-India Economic Forum 2026.
He said there was a need to understand the range of uncertainty arising out of the conflict, particularly in South Asia and in general in the Asia-Pacific region. “It is not purely about the price of oil… it is about the commodities that matter,” he said.
India’s landed crude cost rose to about USD 113 per barrel in March, Nageswaran said.
“The kind of challenges that India will face with respect to the global inflation and the external impact is something that needs to be watched,” he said.
Nageswaran said remittances, particularly from the Gulf nations, could also come under pressure.
The Chief Economic Adviser said despite these risks, India’s fundamentals remain strong, citing sustained growth, moderate inflation and improving fiscal balances.
Nageswaran said India has expanded its global engagement through new trade agreements such as with the UK, the European Union and the United States.
He said these agreements would help cushion external shocks and strengthen India’s role in global value chains.
Nageswaran said capital expenditure has increased more than threefold in recent years.
“If you look at the total number of highways, the length of highway kilometres, 10 times, the railway network, and if you look at the port handling capacity, and lastly, the amount of goods that India transports to inland waterways, is on the rise,” Nageswaran said.
