Mumbai, June 26 -- The global economy is in a state of flux, reeling from the twin shocks of trade policy uncertainties and a spike in geo-political tensions. The optimism from a temporary tariff freeze and trade deals has kept financial market sentiments buoyed in May and early-June 2025. However, following the outbreak of the Iran-Israel conflict, heightened uncertainty and volatility have once again gripped financial markets.
Meanwhile, the OECD and World Bank reports released in June have reaffirmed the possibility of a marked deterioration in the medium-term global economic prospects amidst rising trade barriers and restrictions.
Reflecting the trade policy uncertainties, high-
frequency indicators on global manufacturing activity f...