While presenting the Interim Budget 2014-15, the Union Finance Minister Shri P Chidambaram said that since September, 2008, the state of the world economy has been the most decisive factor impacting the fortunes of every developing country, including India. However, India has been among a few countries to keep its head above the water. Hence, to understand the story of India’s growth, it would be pertinent to add a few words on the global economy as well as on the global risks.

The Finance Minister informed that the world economic growth was 3.9 percent in 20011, 3.1 percent in 2012 and 3.0 percent in 2013. He added that among India’s major trading partners, who are also major sources of foreign capital inflows such as the United States, has just recovered from a long recession while Japan’s economy is still responding to the stimulus. He also pointed out that the Eurozone, as a whole, is reporting a growth of 0.2 percent and China’s growth has slowed down from 9.3 percent in 2011 to 7.7 percent in 2013.

Shri P Chidambaram stated in the House that the `Global Risks 2014 Report’ has mapped 31 global risks. Among these, he elaborated, are ten risks which are of highest concern. They include fiscal crisis, structurally high unemployment or underemployment, income disparity, governance failure, food crisis and political and social instability. These are challenges faced by all emerging economies.

Global economic risk mapped as fiscal, employment and governance threats; India urged to factor these into fiscal and policy planning. The Finance Minister connected India's growth to persistent global headwinds and singled out key systemic threats from the Global Risks 2014 mapping-notably fiscal crisis, structurally high unemployment or underemployment, income disparity, governance failure, food crisis, and political and social instability-urging that these cross cutting risks inform fiscal and policy responses to protect macroeconomic stability and social cohesion while recognising India's relative resilience.