Parliament panel to review India's economy amid global turmoil and growth concerns

A key parliamentary panel has decided to undertake a detailed study of India's evolving economic conditions as policymakers grapple with the impact of geopolitical tensions, trade disruptions and slowing global growth.

According to a Lok Sabha bulletin, the Standing Committee on Finance has selected 'Evolving Economic Conditions in the Country' as an additional subject for examination during 2025-26.

Parliamentary committees typically identify subjects for review soon after they are constituted. However, they can also take up additional issues during their tenure in response to changing economic and policy circumstances.


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The decision comes at a time when the Indian economy is navigating an increasingly uncertain global environment marked by geopolitical conflicts, tariff-related tensions, supply-chain disruptions and volatility in commodity prices.

India's economy is estimated to have expanded 7.7% in 2025-26, supported by a strong 7.8% growth rate in the January-March quarter. The economy had grown 7.1% in 2024-25.

Despite the strong recent performance, the Reserve Bank of India (RBI) expects growth to moderate to 6.6% in the current fiscal year. The central bank has flagged risks from ongoing tensions in West Asia, which have pushed up global prices of crude oil and fertilisers. India remains heavily dependent on imports for both commodities.

As part of its study, the committee is expected to seek inputs from the finance ministry, the RBI, economists and other stakeholders before preparing a report containing its observations and recommendations.

The review is likely to cover a broad range of issues, including economic growth, inflation, employment, investment trends, fiscal management, developments in the banking sector, trade performance and the impact of global events on the domestic economy.

The panel's examination assumes significance as India seeks to sustain high growth while managing external challenges ranging from geopolitical tensions and trade uncertainties to supply-chain bottlenecks and commodity price fluctuations.

For 2026-27, the Standing Committee on Finance, chaired by Bhartruhari Mahtani, has selected subjects across the ministries of Finance, Corporate Affairs, Planning (NITI Aayog) and Statistics for detailed scrutiny.