Global Shocks Economy: Axis Bank Economist Warns of Frequent Disruptions

Neelkanth Mishra, chief economist at Axis Bank, has cautioned that global disruptions could become far more frequent.

He warned that economies like India may face geopolitical shocks every one to two years.

Shift Towards a Volatile Global Order

Mishra highlighted that recent global tensions are part of a broader structural shift in the world economy.

A key factor driving this volatility is the growing rivalry between the United States and China.

Temporary Calm Not a Long-Term Solution

He noted that temporary ceasefires or easing of tensions should not be mistaken for lasting stability.

Instead, such developments may only provide short-term relief in an increasingly uncertain global environment.

Implications for India’s Economy

Frequent global shocks could impact:

• Trade flows
• Supply chains
• Inflation and energy prices
• Investment cycles

India must prepare to manage these recurring disruptions effectively.

Need for Economic Resilience

Experts suggest that India should focus on building resilience through:

• Diversified supply chains
• Strong domestic demand
• Policy flexibility
• Strategic reserves

These measures can help cushion the impact of global uncertainties.

Geopolitics Driving Economic Trends

The intersection of geopolitics and economics is becoming more pronounced.

Conflicts, trade tensions, and strategic rivalries are increasingly influencing global markets.

Business and Policy Impact

Frequent disruptions could reshape business strategies and policy decisions.

Companies may need to adapt quickly to changing global conditions, while governments must remain proactive.

Outlook: Preparing for a New Normal

The warning signals a shift towards a “new normal” where global shocks are no longer rare events.

Preparedness and adaptability will be key for economies to navigate this evolving landscape.