EAC-PM Reviews Impact of West Asia Conflict on India, Explores Measures to Strengthen Economic Resilience
New Delhi: Prime Minister Narendra Modi chaired a high-level meeting with members of the Economic Advisory Council to the Prime Minister (EAC-PM) on Saturday, focusing on strategies to sustain and accelerate India's economic growth amid rising global uncertainties and geopolitical challenges.
The meeting brought together leading economists and policy experts who exchanged views on strengthening India's economic resilience, boosting investment, supporting growth, and mitigating the impact of global disruptions on the country's development trajectory.
PM Modi Reviews India's Economic Outlook
According to sources, Prime Minister Modi and members of the Economic Advisory Council held extensive discussions on a range of policy measures aimed at maintaining India's growth momentum despite ongoing global economic volatility.
The deliberations covered key areas such as economic expansion, investment opportunities, job creation, infrastructure development, energy security, and long-term growth strategies.
Council members also presented their assessment of the evolving international economic landscape and the challenges emerging from geopolitical conflicts affecting global markets.
West Asia Conflict Among Key Topics Discussed
A major focus of the meeting was the ongoing conflict in West Asia and its potential impact on India and the global economy.
The conflict has triggered significant disruptions across international markets, affecting energy supplies, trade routes, transportation networks, and investor confidence.
Experts highlighted that rising geopolitical tensions have led to increased fuel prices, higher freight costs, disruptions in air travel, and growing concerns over global supply chains.
Given India's dependence on imported energy resources, developments in the region continue to be closely monitored by policymakers and economic experts.
Rising Energy Costs Pose Economic Challenges
Since the escalation of tensions in West Asia, global oil and gas markets have witnessed heightened volatility.
Higher crude oil prices have increased transportation and manufacturing costs worldwide, creating inflationary pressures across economies.
Industry experts note that rising energy prices can directly affect household budgets, business operations, and government spending by increasing the cost of essential goods and services.
The Economic Advisory Council reportedly reviewed these developments and explored potential measures to cushion the Indian economy from external shocks.
United Nations Warns of Wider Economic Impact
Recent assessments by the United Nations Development Programme (UNDP) have highlighted the broader consequences of military escalation in West Asia for countries across Asia and the Pacific.
According to the UNDP report titled "Military Escalation in the Middle East: Human Development Impacts Across Asia and the Pacific," the conflict is creating additional economic and social pressures throughout the region.
The report notes that higher fuel costs, increased freight charges, and rising input expenses are reducing household purchasing power, worsening food insecurity, straining public finances, and affecting livelihoods in multiple countries.
India Could Face Poverty and Development Challenges
Preliminary projections cited in the UNDP assessment suggest that prolonged geopolitical instability could have significant implications for developing economies.
The report estimates that approximately 2.5 million people in India could be pushed into poverty if the economic effects of the conflict continue to intensify.
It also warns that the country may experience some setbacks in its broader human development progress due to rising living costs and economic pressures.
Globally, the United Nations estimates that nearly 8.8 million people could be at risk of falling into poverty as a result of the ongoing crisis.
Asia-Pacific Economy Could Lose Billions
The UNDP's preliminary assessment further estimates that the military escalation in West Asia could result in economic losses of up to $299 billion across the Asia-Pacific region.
Analysts believe that prolonged disruptions to trade, transportation, and energy markets could slow economic growth across multiple countries, particularly those heavily reliant on imported fuel and international supply chains.
These concerns have prompted governments across the region to evaluate contingency plans and strengthen economic safeguards.
India Focuses on Economic Resilience
Despite global uncertainties, India remains one of the world's fastest-growing major economies.
The discussions between Prime Minister Modi and the Economic Advisory Council reflected the government's focus on maintaining macroeconomic stability, encouraging investment, promoting innovation, and protecting economic growth from external disruptions.
Experts believe that proactive policy planning, infrastructure development, digital transformation, and energy diversification will play a crucial role in strengthening India's economic resilience in the years ahead.
As geopolitical tensions continue to shape the global economic landscape, policymakers are expected to closely monitor developments and implement measures to safeguard growth, employment, and financial stability.
(With inputs from agencies)