Global oil prices surged past $100 due to Red Sea threats, while US interest rates are set to rise. These global economic ripples, including US inflation, profoundly impact India, a major energy and capital importer. High oil prices fuel inflation and slow growth; rising global interest rates divert capital. Despite weathering recent shocks, India faces challenges. It must boost export competitiveness via duty elimination and infrastructure investment. Attracting long-term foreign investment requires policy predictability and stability. Fiscal prudence is also crucial to manage current account deficits effectively.