Though the issues discussed at the meeting were not completely made public, the West Asia conflict and its impact on crude oil prices, fertilisers, transportation, goods and the rupee would definitely have been the focus
Mr Narendra Modi’s meeting with the members of the Economic Advisory Council to the Prime Minister (EAC-PM) to review measures to boost India’s economic growth is timely. It could also help him navigate the country out of the global turmoil.
The meeting, Mr Modi said, discussed a wide range of issues related to India’s economic transformation and long-term development priorities. It also appears to have discussed the prospects of adding momentum to the reforms journey and ensuring “Ease of Living” and “Ease of Doing Business”.
Though the issues discussed at the meeting were not completely made public, the West Asia conflict and its impact on crude oil prices, fertilisers, transportation, goods and the rupee would definitely have been the focus.
While India has partially offset the impact of the crude oil shortage by expanding its supplier base, the Modi government must remain vigilant to the rupee weakness which has been exacerbated by the relatively higher valuation of stocks and poor foreign remittances.
Last year, foreign portfolio investors pulled out nearly $19 billion from India. The net foreign direct investment (FDI) shrank from $28 billion to $1 billion in 2024-25 and $3 billion in 2025-26, which is worse than the $21-billion that India received in 2013.
As a percentage of the GDP, according to World Bank data, the country received the lowest ever net FDI in 2024-25 since 1992. Yet, the government did not take any proactive and aggressive steps to attract foreign investment because it had the cushion of NRI remittances and hot money infused by FPIs.
The government must, therefore, open up sectors crucial for India’s shift to energy independence, such as freight lines and services, public transport, electric vehicles and batteries, among others. As India is still the fastest-growing major economy, several global corporations would be keen to be a part of the country’s growth story.
