Page 30 - Policy Economic Report - April 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Implications for the Global Economy

• Resilience vs efficiency trade-off: Diversified supply chains improve resilience but may increase
production and logistics costs

• Capital reallocation: Investment flows are increasingly aligned with supply chain positioning and
strategic sectors

• Inflationary pressures: Higher costs may contribute to structurally elevated inflation

• Regionalisation of trade: Greater importance of regional blocs and bilateral partnerships, as noted
by the IMF

India’s Position

India is emerging as a key connector economy, benefiting from supply chain diversification and supportive
policy initiatives. As highlighted by UN Trade and Development and the World Bank, India’s growing role
in global trade is supported by:

• Production-linked incentives (PLI) schemes

• Infrastructure expansion

• Trade diversification efforts

However, fully leveraging this opportunity will require:

• Strengthening logistics and infrastructure efficiency

• Improving ease of doing business

• Enhancing export competitiveness

• Deepening integration into global manufacturing value chains

The global economy is transitioning from a model driven by efficiency and hyper-globalisation to one
shaped by resilience, diversification, and strategic alignment. As emphasised by UN Trade and
Development and the International Monetary Fund, countries that successfully position themselves
within reconfigured global value chains are likely to gain from evolving trade and investment patterns.

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