Reserve Bank Governor Sanjay Malhotra on Friday flagged rising global economic risks, warning that geo-economic fragmentation is reshaping supply chains and disrupting global capital and financial flows. “Geo-economic fragmentation caused by tariffs, trade restrictions, and industrial policies are reshaping not only global supply chains, they are also affecting the free movement of capital and led to fragmentation of financial flows,” he said. Addressing the FIMMDA-PDAI Annual Conference in Amsterdam, Malhotra cautioned that stretched valuations in certain asset classes—particularly equities, including some technology stocks—could have spillover effects across markets and regions. Malhotra also identified artificial intelligence as a key source of uncertainty, noting that while it promises productivity gains, concerns persist over the viability of some business models, the pace and scale of efficiency improvements, and potential job impacts.…