BS EDIT: Emerging Challenges

By Business StandardPublished On Jul 2, 2026

Relief, Not Resolution

Falling crude oil prices have eased pressure on India's economy. But the recent crisis exposed deeper vulnerabilities to external shocks

Stability Matters

The RBI warns that preserving financial stability and building resilience are essential in an increasingly uncertain global environment

External Pressures

India's balance of payments has remained in deficit for two years, highlighting challenges in attracting sufficient foreign capital

Global Headwinds

High interest rates, rising debt and tighter financial conditions are making global capital flows more volatile

AI Reshapes Flows

The AI investment boom is drawing global capital to the US, creating fresh challenges for emerging markets like India

The Way Forward

India must strengthen its investment appeal. Lasting reforms, not temporary measures, are key to attracting stable capital