AI bubble burst inevitable, US trade strain looms: Finance Ministry

India's Finance Ministry has flagged strains in trade relations with the United States following the Lindsey Graham Bill, which allows tariffs of up to 100% on countries purchasing Russian crude oil.

The ministry's report cautions that these trade tensions could trigger broader economic headwinds, including elevated oil prices, rising bond yields, and reduced capital inflows. The report also warns of an eventual slowdown in artificial intelligence investment.

These concerns reflect growing anxiety over protectionist trade measures and their potential ripple effects on India's economy and investment climate.