Parliamentary Panel Takes Up Economic Review Amid Geopolitical and Trade Concerns

In view of rising geopolitical tensions , trade uncertainties and concerns over the global economic outlook, the Parliamentary Standing Committee on Finance has decided to undertake a detailed study of the country's evolving economic conditions.

According to a Lok Sabha bulletin, the committee has selected "Evolving Economic Conditions in the Country" as an additional subject for examination during 2025-26 . Parliamentary committees are empowered to take up additional subjects beyond their original agenda in response to changing circumstances and emerging policy challenges.

The decision comes at a time when India is navigating a complex global environment marked by conflicts in West Asia , supply chain disruptions, tariff-related uncertainties and fluctuations in commodity prices. These developments have raised concerns over inflationary pressures and their potential impact on economic growth.

While the Indian economy is estimated to have expanded by 7.7 per cent in 2025-26 , with growth accelerating to 7.8 per cent in the January-March quarter , the Reserve Bank of India (RBI) has projected growth to moderate to 6.6 per cent in the current fiscal year. Higher global prices of crude oil and fertilisers , both of which India imports in significant quantities, are among the factors contributing to the cautious outlook.

As part of its study, the committee is expected to seek inputs from the Finance Ministry , the RBI, economists and other stakeholders. The examination is likely to focus on key areas such as economic growth, inflation, employment generation, investment trends, fiscal management, banking sector developments, trade performance , and the impact of global developments on India.

The committee's report is expected to provide an assessment of the economy's current trajectory and offer recommendations aimed at sustaining growth while addressing emerging risks . Its findings could help inform future policy decisions as the government seeks to maintain economic stability amid an uncertain global landscape.

For 2026-27 , the panel has also identified subjects relating to the ministries of Finance, Corporate Affairs, Planning and Statistics for detailed scrutiny.