Policy Newsletter | April 2026

India’s federal structure offers resilience amidst global turmoil

Events in April 2026 underscored a defining feature of India’s economic trajectory: resilience in the face of external volatility, coupled with an increasingly execution-oriented domestic policy framework.

Rising tensions across the Middle East demonstrated the extent to which geopolitical disruptions can shape India’s macroeconomic environment. With India importing approximately 85 percent of its crude oil requirements, volatility in energy markets had immediate implications for inflation, trade balances, and fiscal management. Higher oil prices, elevated freight premiums, and disruptions to key shipping corridors increased inflationary pressures and widened concerns around the current account. India’s policy response has been measured.