Archive · 24 Sep 2026
India Urged to Build Buffers Beyond Protectionism
India’s chief economic adviser says the country should not simply shut out foreign competition.
Instead, India should make important goods at home while still being able to sell products around the world.
He also wants India to keep large supplies of important items, such as six months of oil.
This could help the country cope when wars, politics or trade disputes disrupt supplies.
He said countries are increasingly using trade, technology and energy as tools of pressure.
The adviser also warned that prices, interest rates and government debt may stay high for a long time.
Artificial intelligence is changing what countries trade and may reduce some junior-level jobs.
He said India needs both jobs that use AI and jobs that are less affected by AI, including work in factories, tourism, hospitality and elder care.
Chief Economic Adviser V. Anantha Nageswaran urged India to combine indigenisation with global export competitiveness.
He called for physical buffers, including at least six months of oil storage, to withstand supply shocks.
Nageswaran warned that geopolitical trade weaponisation is making market access increasingly conditional.
He said AI-related goods accounted for half of world merchandise trade growth in 2025, benefiting chip exporters such as South Korea and Taiwan.
He argued India must create both AI-related and AI-insulated jobs through manufacturing and services including tourism, hospitality and elder care.
- Who
- V. Anantha Nageswaran, India’s Chief Economic Adviser.
- What
- He urged India to combine domestic indigenisation with export competitiveness, build commodity reserves and create jobs suited to an AI-changing economy.
- When
- Thursday; the article also references trade growth in 2025 and China’s surplus during the first eight months of 2026.
- Where
- The SBI Banking & Economics Conclave in Mumbai.
- Why
- To improve India’s resilience against geopolitical supply shocks, trade restrictions, higher commodity prices and changing labor-market conditions.
- Speaker
- V. Anantha Nageswaran, Chief Economic Adviser
- Recommended oil reserve
- At least six months of storage
- China’s goods surplus
- Roughly $800 billion in the first eight months of 2026
- AI trade impact
- AI-related goods accounted for half of world merchandise trade growth in 2025
- Imported crude price
- India’s crude basket reached approximately $114-$115 per barrel
- Priority job areas
- Labour-intensive manufacturing, elder care, tourism and hospitality
- Policy focus
- Tax-policy certainty, investor protection, contract sanctity, infrastructure and workforce skills