Amid supply disruptions and commodity price pressures linked to the US-Iran war, the government doubled the corpus of the Economic Stabilisation Fund late last fiscal. Over time, this fund may become an important instrument for enhancing India’s economic resilience, writes Rajnish Gupta l What is an Economic Stabilisation Fund DUE TO THE growing frequency and intensity of geopolitical events and global headwinds, the Indian government had established a dedicated Economic Stabilisation Fund (ESF) in 2025-26 to ensure macroeconomic resilience. The fund is intended to provide the government with some fiscal headroom during periods of uncertainty, reducing the need for abrupt expenditure cuts or excessive borrowing.