New Delhi: External Affairs Minister S Jaishankar has warned that growing geopolitical conflicts are creating a chain of economic pressures that could push several countries towards serious food, energy and financial challenges.
Speaking at an event in New York, Jaishankar said the effects of conflicts in Ukraine and the Iran Gulf region are spreading well beyond the countries directly involved. He stressed that policymakers need to consider how their decisions affect other nations, particularly developing economies.
Jaishankar pointed to the possibility of a worsening food crisis, citing disruptions to global grain supplies and shortages of fertilisers. Several major grain exporters could face difficulties in shipping supplies, particularly through the Black Sea, while key fertiliser producing regions in Russia and the Middle East are also facing disruption.
He also highlighted the additional threat posed by climate conditions such as a strong El Nino, which can influence rainfall patterns and agricultural production across different parts of the world. A combination of supply disruptions and unfavourable weather could place further pressure on food availability and prices.
The situation is being compounded by instability in global energy markets. Higher energy costs can increase pressure on economies already struggling with inflation, trade disruptions and weaker growth.
Jaishankar also drew attention to the movement of global capital during periods of conflict. As investors seek safer markets, funds can move away from developing economies, leaving them with fewer resources to respond to sudden economic shocks.
He said many developing countries are now dealing with simultaneous challenges involving food, fuel, fertilisers and finance. With limited fiscal space available in several economies, governments may have less capacity to absorb furthe
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