During a keynote at the SBI Banking and Economics Conclave, Chief Economic Adviser V Anantha Nageswaran cautioned that India's imported crude basket climbed 29.9% from August to September. The price peaked at $115.27 a barrel on 22 September. This surge exposes the country to multiple shocks.
Nageswaran said that supply shocks now dominate the global economy. He cited the pandemic, the Ukraine war, trade restrictions, supply‑chain disruptions, the Persian Gulf conflict and the AI investment boom. These forces are tightening production and price levers worldwide.
He warned that India's pursuit of strategic autonomy carries a cost. The country cannot belong to any bloc, he said, and that sovereignty can invite higher energy prices and more frequent disruptions. The price hike could ripple through trade and capital flows.
Nageswaran urged the government to build resilience rather than merely self‑reliance. He echoed the need for a "diversified abundance" strategy. The policy shift must target supply chain flexibility and energy diversification.
The surge threatens domestic trade, as higher energy costs inflate production and transportation across the economy. Small businesses feel the pinch as logistics budgets swell.
He called for an immediate policy review, with the Finance Ministry expected to address the issue in the next cabinet meeting.