AI, Supply Chain Threats Highlight Need For Faster Policy Action: Finance Ministry

New Delhi, Jul 30 (KNN) The Ministry of Finance has underlined the need for India to strengthen its long-term economic resilience in response to global developments in Artificial Intelligence (AI) and the growing weaponisation of supply chains.

In its latest Monthly Economic Review, released by the Department of Economic Affairs (DEA), the ministry noted that these global trends highlight the distance India still needs to cover to achieve strategic leverage and economic stability.

The review said, “Global developments related to AI and weaponisation of supply chains in general are reminders of the distance India needs to travel to achieve long-term resilience and strategic leverage,” ANI reported.

Faster Policy Action Needed

The review emphasised that quicker policy responses and effective implementation will be key to attracting both domestic and foreign investment.

It noted that policymakers must remain prepared for continued global uncertainties, adding that “swifter policy responses and their implementation are vital to encourage foreign and domestic investment in the Indian economy.”

Push for Industrial and Manufacturing Strength

The ministry highlighted ongoing strategic initiatives aimed at strengthening domestic manufacturing and supply-chain resilience. These include programmes such as Semicon 2.0, as well as efforts in critical minerals, coal gasification and shipbuilding.

Such measures are expected to enhance industrial competitiveness and support long-term growth, alongside steps to simplify regulatory compliance and promote manufacturing activity.

Emerging Sectors Show Progress

According to the review, advancements in sectors like commercial space and hydrogen-based mobility indicate a broadening of India’s technological and industrial capabilities, contributing to sustainable economic development.

Focus on Resource Security

The ministry also cautioned that firm global prices of industrial metals, rare earth elements and other critical minerals underscore the need to build resilience rather than react to disruptions.

It stressed the importance of creating adequate buffers in energy resources and key industrial inputs to maintain macroeconomic stability and industrial strength.

(KNN Bureau)