Finance Minister Nirmala Sitharaman has highlighted terrorism as a major concern that businesses must consider when making investment decisions. Speaking at the Kautilya Economic Conclave, Sitharaman emphasized that the impact of global terrorism heavily influences the risk landscape for investors and businesses. While businesses have traditionally factored in terror-related risks when investing in regions like South Asia, recent years have seen an increase in terror attacks in other parts of the world, such as the US and Europe. Sitharaman also discussed the disruption caused by wars on global supply chains, referencing the recent West Asia conflict and its minimal impact compared to the Russia-Ukraine conflict, which greatly affected the supply of various commodities.
Furthermore, Sitharaman addressed the issue of global food security, stating that the developments related to wars and the pessimistic outlook on globalization have raised concerns in this area. She highlighted the importance of considering global risks for businesses that rely on global sourcing. Additionally, the Finance Minister acknowledged the challenges posed by energy transition for climate change mitigation, emphasizing the significant need for climate finance in developing and poor countries. Sitharaman also mentioned the government’s focus on reducing debt while maintaining responsible spending.
In conclusion, Sitharaman emphasized the need for businesses to factor in the impact of global terrorism on their investment decision-making. She also highlighted the disruptions caused by wars on global supply chains and the concerns regarding global food security. Additionally, the Finance Minister stressed the urgency of climate finance for developing countries and discussed the government’s efforts to reduce debt.
