India should prepare for geopolitical disruptions every one to two years and use the current global uncertainty to push long-pending economic reforms, Axis Bank chief economist Neelkanth Mishra said at Kotak Private Banking’s Take and Counter Take (TACT) forum. Speaking at the invitation-only event moderated by Nilesh Shah, Mishra said the temporary ceasefire between Iran and the United States may have eased immediate tensions, but volatility linked to the broader US-China geopolitical rivalry is likely to continue.
Mishra warned that the biggest risks from conflicts emerge through disruptions in supply chains, energy flows, chemicals, fertilisers, logistics and aviation. He said even a four percent disruption in global energy supply could significantly impact global GDP, manufacturing and trade. However, he maintained that India is better prepared than during earlier crises due to stronger capital markets, improved external balances and greater policy credibility.
He urged India to accelerate reforms in electrification, energy pricing, housing and urban infrastructure to reduce dependence on imported fuel and strengthen domestic demand. Mishra also called for reforms in tourism and urban zoning rules to improve competitiveness and generate employment.
In Kolkata, traders and industrial stakeholders are closely monitoring global energy prices and supply chain volatility, particularly in sectors dependent on imported raw materials and logistics networks. Market experts believe faster reforms in infrastructure, electrification and urban development could boost investment sentiment across eastern India, including the Kolkata business corridor.
