New Delhi, Jan. 31 -- The world is seeing a "re-enactment of the Cold War era", the Economic Survey warned, undermining growth and trust in the current global economic system.

Setting out the medium-term outlook, the Survey presented on Friday said rising geopolitical tensions and the breakout of war have further intensified underlying fissures in the global economy.

"In a re-enactment of the cold war era, countries are once again getting grouped into two blocs and phrases like friend-shoring have come to play centre-stage in global policymaking.

"Tensions over trade, technology standards, and security have been growing for many years, undermining growth and trust in the current global economic system. Therefore, fragmentation-economic...