The Centre is preparing a comprehensive reform road map aligned with Viksit Bharat 2047, focusing on actionable and near-term measures across ministries.
The ongoing West Asia conflict has increased urgency to secure energy and fertiliser supplies while strengthening domestic supply chains to reduce external vulnerabilities.
Chief Economic Adviser V. Anantha Nageswaran warned of downside risks to India’s 7–7.4% growth projection for 2026–27, citing potential pressure on inflation, fiscal deficit and external balances.
West Asia Conflict Triggers Urgent Reform Push to Shield Economy
Government looks to accelerate Viksit Bharat-aligned reforms and strengthen domestic supply chains as geopolitical tensions threaten energy supplies, inflation outlook and growth momentum
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The Centre is mulling a comprehensive reform road map amid heightened geopolitical tensions in West Asia, in a bid to build on measures already under way, The Economic Times reported, citing sources. Earlier this month, the Prime Minister’s Office asked various ministries and departments to submit reform plans, with a focus on actionable measures and low-hanging fruit, the report said.
The reforms aim to use the current crisis to accelerate efforts across sectors to boost self-reliance and strengthen domestic supply chains. This also aligns with the broader vision of Viksit Bharat 2047.
Last year, the government set up a high-level committee headed by NITI Aayog member Rajiv Gauba to push the implementation of Viksit Bharat goals and non-financial regulatory reforms.
“It involves a ‘whole-of-government’ approach because any such crisis demands coordinated action across ministries,” the report cited a source as saying. It added that reform proposals will span the short, medium, and long term, focusing on specific goals, and will be reviewed at senior levels within the government before being taken forward. The Department of Economic Affairs is working on strategies to mitigate economic risks, including those weighing on energy supplies and costs.
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The ongoing conflict has heightened urgency as global supply chains—particularly in the energy sector—face disruptions, with no clear timeline for a return to normalcy, according to sources familiar with the matter.
Chief Economic Adviser V. Anantha Nageswaran on Saturday cautioned that India faces “considerable downside” risks to its projected growth of 7–7.4% for 2026–27 amid the ongoing conflict. He highlighted potential pressures on inflation, the fiscal deficit, and external balances if the war persists or escalates.
The situation has also prompted policymakers to reassess reform priorities, shifting immediate attention toward securing stable energy and fertiliser supplies while cushioning the impact on households, businesses, and the broader economy.
Although the broader reform agenda remains on track, strengthening domestic supply chains to better withstand global shocks is emerging as a key priority, alongside longer-term structural measures.