Arvind Subramanian Warns of Deep Economic Challenges Amid Oil Surge

Amid escalating tensions in West Asia and surging global oil prices, concerns are rising over pressure on the Indian rupee and the country’s external sector stability. Former Chief Economic Adviser Arvind Subramanian told NDTV that India is not facing a 1991-style balance of payments crisis, but rather a “price adjustment problem” driven by taxes, subsidies and widening gaps between domestic and global energy prices. He also warned that private corporate investment has sharply declined despite reforms like GST and stressed the need for deeper structural reforms and renewed investor confidence.