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India a victim of geopolitics, capital flows disruption; rupee slide seen as risks stem from possible ‘disorderly multipolar breakdown’: Economic Survey
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The Indian Express
As a country dependent on global capital flows, India has to plan for liquidity and external capital buffers in the coming year, the Survey said, adding that capital flight, including with the advent of the US stablecoins, is another risk to watch out for.
The Survey also noted that India is a victim of geopolitics.
The rupee’s valuation does not accurately reflect India’s “stellar economic fundamentals”, which causes investors to pause.
As per latest data, India’s FDI flows saw a net FDI outflow for the third consecutive month in November at $446 million.
In the second scenario, the probability of a “disorderly multipolar breakdown” rises materially and cannot be treated as a tail risk, the Survey said.