The global economy is experiencing profound and potentially irreversible changes, moving into a new and uncertain era characterized by geoeconomic fragmentation and shifting international relations. This sentiment, highlighted by the Financial Times, is corroborated by various international organizations and economic analyses. Key drivers of this transformation include escalating geopolitical tensions, which are leading to the breakdown of global cooperation into competing blocs and a redirection of foreign direct investment (FDI) along political lines. Trade tensions, notably the impact of tariffs, are a significant factor, contributing to inflation and exerting downward pressure on global growth forecasts. For instance, tariffs alone have reportedly added 0.7 percentage points to US inflation, costing American households hundreds of dollars annually. Furthermore, global supply chains are undergoing a fundamental re-evaluation, with companies prioritizing resilience and diversification over previous sole focuses on efficiency. This involves practices like nearshoring and reshoring, altering traditional trade routes and manufacturing strategies. While the global economy has shown some resilience, overall GDP growth is projected to slow in 2026, falling below pre-pandemic averages. For instance, UN Trade and Development anticipates global economic expansion of only 2.6% in 2025 and 2026. Inflation, although projected to ease in some regions, remains elevated, leading to a persistent cost-of-living squeeze for many households. The rise of artificial intelligence is also identified as a significant factor, offering potential productivity gains and economic tailwinds, but also posing risks of market bubbles and job displacement. These combined factors signify a departure from the hyper-globalized economic model of past decades, necessitating strategic adjustments for countries and businesses worldwide, including India.