Speaking at the 5th Kautilya Economic Conclave in New Delhi, Reserve Bank of India (RBI) Governor Sanjay Malhotra warned that financial stress can build overnight but take years to resolve, and that India cannot afford to become complacent. He said the system has absorbed the West Asia conflict shock quite well and growth has been resilient. But the conflict has added to inflationary pressures and raised financial system vulnerabilities, he said, at a time when a fragmenting global order makes risks harder to predict and model.