India's strong growth fundamentals face risks from prolonged external shocks: Erik Berglof
Economic Times 1 hr ago·4 Oct 2026, 5:27 pm
Economist Erik Berglof warns that India’s strong growth base is being tested by prolonged external shocks such as climate events, geopolitical tensions and the impact of high U.S. Treasury yields on emerging markets.
Investors should note that higher global rates can lift borrowing costs for Indian firms and influence capital flows, while energy and water shortages could pressure sectors like utilities, infrastructure and agriculture, affecting earnings.
Going forward, attention will focus on policy steps to improve energy and water security, any fiscal or monetary actions to cushion higher financing costs, and the trajectory of U.S. bond yields and domestic inflation data.
Key takeaways
- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
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