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CEA flags US ties, energy as headwinds, calls for strategic buffers

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CEA flags US ties, energy as headwinds, calls for strategic buffers

Home / Economy / News / CEA flags US ties, energy as headwinds, calls for strategic buffers

CEA V Anantha Nageswaran says India cannot afford to choose between global blocs and must build strategic buffers and forge partnerships with foreign technology firms

CEA to the government V Anantha Nageswaran at an event organised by the Public Affairs Forum of India | Photo: X/ @PAFIIndia

Himanshi Bhardwaj Krity Ambey New Delhi 5 min read Last Updated : Sep 25 2026 | 7:32 PM IST

Flagging three near-term headwinds for India — unsettled relations with the United States, an uncertain energy market and what he called the absence of the "so-called" artificial intelligence (AI) play in India — Chief Economic Adviser (CEA) to the government V Anantha Nageswaran emphasised the need for strategic buffers and partnerships with foreign firms that have strengths in AI.

Unsettled relations with the US may impact capital flows into India, especially from portfolio investors, Nageswaran said on Friday at an event organised by the Public Affairs Forum of India (PAFI). More broadly, he described US tariffs, sanctions legislation and trade restrictions as part of "sustained coercion for countries to choose between the blocs."

Nageswaran’s comment comes at a time when the US has passed a law authorising President Donald Trump to impose up to a 100 per cent tariff on India for its energy purchases from Russia. While the US Congress passed the Lindsey O Graham Sanctioning Russia Act of 2026 last week, the final decision on whether to levy tariffs, and their rate and coverage, remains with Trump.


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