‘India At Economic Turning Point Like 1991,’ Says CEA Nageswaran; Here’s What It Means

Chief Economic Adviser V. Anantha Nageswaran (File Photo)

India is entering a defining phase in its economic journey, with the challenges confronting the country today bearing similarities to the period around the 1991 economic reforms, Chief Economic Advisor (CEA) V Anantha Nageswaran said on Thursday. He identified FY26 as a crucial turning point for India's economic trajectory, citing repeated global disruptions and mounting pressure on essential supplies.

Nageswaran clarified that the comparison with 1991 did not suggest a repeat of the balance of payments crisis that India experienced at the time. Instead, he drew parallels between the importance of the two periods for the country's long-term economic direction.

The global economy has faced a succession of shocks in recent years, ranging from the COVID-19 pandemic and the Russia-Ukraine war to the ongoing conflict in the Gulf region. These developments have disrupted trade, affected energy markets and exposed vulnerabilities in international supply chains.

For India, dependence on imported crude oil adds to the risks arising from fluctuations in global commodity prices. Trade tensions, shortages of critical materials and disruptions to essential supplies have also emerged as concerns for policymakers.

"2026 resembles 1991, not in terms of balance of payment crisis. It…

Original source: https://www.timesnownews.com/business-economy