The Mar’25 volume of EcoCapsule tries to read between the lines on tariff wars. Concluding that while the intensity and impact changes in trade will be protracted and sector-specific, the uncertainty in the interim could cause more damage. This has led to unprecedented volatility across asset classes in the near term. In the long term, a less globalised world order has encouraged nations to ramp up their fiscal spending, bringing to fore the questions of debt sustainability. India remains relatively well poised amongst global economies, but FY26 has more headwinds from global factors than tailwinds from domestic drivers. The role of the Central Bank will continue to remain critical in juggling multiple priorities, and completing the government in tiding over this wave of uncertainty.
