Business Standard: Time Bought, Not Problems Solved
(This article appeared in Business Standard on 21st April 2026, link below: https://www.business-standard.com/opinion/columns/india-s-buffers-can-steady-markets-but-hard-policy-choices-lie-ahead-126042001216_1.html ) Time Bought, Not Problems Solved India’s buffers can manage markets for now, but hard policy choices still lie ahead India is navigating uncertainties arising from the US-Israel-Iran conflict. Economic and regulatory buffers are in place, and markets have priced in higher risk. However, macroeconomic vulnerabilities remain. India needs more investments and innovation. To this end, appropriate policies can help address external and fiscal imbalances, attract foreign investment, and better support balanced growth. Markets, Flows, and Regulations India has been managing a persistent external imbalance. In FY25, India experienced a core external deficit of $38 billion, across its current account deficit (CAD), net foreign direct investment (FDI), and...