India’s Chief Economic Advisor V Anantha Nageswaran described 2025-26 as an inflection point, citing supply disruptions that can halt production when essential inputs are unavailable.
In an Oct. 29 video distributed by Press Trust of India, Nageswaran pointed to semiconductor shortages, trade retaliation linked to tariffs and India’s exposure to crude oil among disruptions over the previous six years. He said the loss of a necessary input can bring production to a stop. He also noted that building data centers for artificial intelligence requires capital, fresh water and power.
Nageswaran said his comparison with 1991 was about the significance of the moment, not a claim that the periods shared a balance-of-payments crisis. The Government of India’s Economic Survey for 1991-92 put foreign-currency assets at $1.1 billion in June 1991 and said the country came close to default in July.
In a separate preface dated Jan. 29, 2026, to the Economic Survey 2025-26, Nageswaran urged India to build resilience. He wrote that geopolitical shifts would influence investment decisions and supply networks for years to come.
