New Delhi, May 12 -- The war in West Asia has exposed India to risks not seen in over a decade. The pressure on the current account deficit (CAD) is mounting, the rupee is depreciating, and demand needs to be curbed to adjust to supply chain disruptions.

Against this backdrop, Prime Minister Narendra Modi, late on Sunday, urged citizens to adopt austerity measures to help navigate pressures.

Yet, India is still in a better position than the 'fragile five' era of 2013. The current scenario, however, requires policy measures, such as a hike in fuel prices and higher gold duties, to keep the macro situation in check.

Fragile five refers to a group of emerging economies identified during the 2013 taper tantrum as highly vulnerable to exter...