MUMBAI: Oil prices have shot up to $114 a barrel from below $85 in June and July, exposing India to multiple shocks as trade, technology and energy risks increasingly reinforce one another, chief economic adviser V Anantha Nageswaran said on Thursday.Speaking at the SBI Banking and Economics Conclave, Nageswaran said India’s imported crude basket had risen nearly 30% in Sept from Aug, while the price stood at $115.27 a barrel on Sept 22. “The effects on prices, capital, and trade end up amplifying each other,” he said.Nageswaran said supply shocks had become the dominant force shaping the global economy, with the pandemic, Ukraine war, trade restrictions, supply-chain disruptions, Persian Gulf conflict and the AI investment boom adding to pressures on production and prices.He said the nature of the shocks had also changed, with countries increasingly using trade, technology and energy as strategic tools. “The worst shocks now arrive, not by accident, but by design,” he said. “What India needs is resilience, not just self-reliance,” he said, adding the country should aim for “diversified abundance”.India’s decision to maintain strategic autonomy also carries a cost, he said. “India, given its geography and its size, cannot obviously belong to any bloc,” Nageswaran said. “That sovereignty or that independence comes with its own cost, and we have to be prepared to pay that price.”He said India could face higher energy prices or more frequent supply disruptions as geopolitical blocs become more entrenched.He said the global economy was moving away from the disinflationary conditions that prevailed from the 1990s to around 2020, when globalisation, trade integration and technology helped keep prices under control.“We probably have put the disinflation era of the 1990 to 2015 or 2020 behind us right now. Commodity and real-asset prices are likely to remain under pressure as the global economy becomes more dependent on physical resources,” he added.Nageswaran said energy prices could remain elevated even if the current conflict is resolved because of rising demand from AI-related infrastructure. “The demand for energy in general coming from the AI model… will continue to keep pressure on energy prices in general on the higher side going forward,” he said.The higher cost of energy coincidentally comes at a time when countries are also competing more aggressively for capital.