What are the biggest risks for India and the world in 2026? – Firstpost

The World Economic Forum (WEF) on Wednesday released its Global Risks Report.

The WEF, in its paper, warned that geoeconomic conflicts are the biggest risk facing the major powers of the world in 2026. It also said that cybersecurity, wealth inequality and a lack of social safety net as among the biggest threats facing India.

But what do we know about the report? How was it compiled? What did it warn the world and India about in detail?Let’s take a closer look.

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How the WEF compiled its report

This was the 21st edition of the WEF’s Global Risks Report. The international group, in its survey, polled 1,300 business leaders, academics and civil society figures across the world. It uses the Global Risks Perception Survey (GRPS) as its main data source.

The respondents were queried about several facets of risks. This included:

Assessing risk in the short term (1–2 years)

Medium term (up to 10 years)

Long term (beyond 10 years)

The risks were then rated on a sliding scale – from low to high impact. The survey also explored how some risks could trigger others. Respondents were also asked to give feedback on what approaches or strategies they thought could best manage or tamp down the risks. It also asked respondents about how they thought nation states could cooperate and how this could affect the future.

The WEF also used data from the Executive Opinion Survey (EOS) while compiling its report. This data was compiled from over 11,000 business leaders across more than 100 nations. The WEF declared the report identified global trends and localised risks by combining the GRPS and EOS.

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Biggest risks to the world in 2026

The WEF, in its report, listed geoeconomic confrontation, such as sanctions and tariffs, as the top risk for 2026. It remarked 18 per cent of respondents polled labelled such geoeconomic confrontations as the main concern for the world. The WEF warned that “rules and institutions that have long underpinned stability are under siege in a fresh era in which trade, finance and technology are wielded as weapons of influence”.

“It’s very much about state-based armed conflict and the concerns around that. So overall, nearly a third of our respondents are very concerned in 2026 about what that means for the global economy and, essentially, the state of the world,” WEF Managing Director Saadia Zahidi told CNBC.

Trump, after returning to the Oval Office in January 2025, had announced his ‘Liberation Day’ tariffs in April. The United States had levied tariffs on hundreds of its trading partners, including India, China, Japan, Germany and Brazil – which led to tensions between the countries.

It listed state-based armed conflict — such as the war raging in Ukraine — as the second biggest risk for respondents at 14 per cent. Israel and Iran also fought a brief 12-day conflict in 2025. Meanwhile, Trump sent special forces to Venezuela to depose its long-time President Nicolas Maduro.

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Extreme weather events came in third at eight per cent. This indicates that economic and geopolitical tensions now outweigh environmental and technological risks, which have traditionally been a major concern, at least in the short term.

However, the report warned that though the environment may have receded in the background in the short term, it remained a massive risk in the long term.

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The WEF report also listed societal polarisation and misinformation and disinformation as notable social risks. This comes as misinformation has gone viral during elections on platforms such as X and Facebook and amid the rise of deepfakes, particularly content generated by AI.

It remarked that around half of respondents think the next two years will be “turbulent” or “stormy”, a 14-point increase from the survey last year.
However, for the long term, it noted that the biggest risks came from the climate emergency. It listed “extreme weather events” as topping the list, followed by “biodiversity setback and ecosystem collapse” and “critical change to Earth systems”.

“Extreme heat, drought, wildfires and other extreme weather events are likely to become more intense and frequent,” the report stated. “Unlike in the two-year outlook, where these have declined in rankings, the existential nature of environmental risks means they remain as the top priorities over the next decade,” it added.

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Around 57 per cent of respondents remarked they expected ‘prolonged instability’ over the next decade.

Biggest risks to India

The report highlighted cybersecurity as the biggest risk to India in 2026.

Much of this is down to India’s growing dependence on digital infrastructure, particularly when it comes to governance and making payments.
Though it cited India’s Unified Payments Interface as an example of a government improving the banking system, it also flagged income inequality and a lack of social welfare schemes as key risks for India.

It noted India also faces risks to its stability from potential slowdowns and external shocks. It remarked tariffs and supply chain issues could heighten the risk of a slowdown domestically.

It also highlighted how critical infrastructure is becoming a growing flashpoint between nations. It cited water security concerns and noted that the Indus River Basin between India and Pakistan could become a bone of contention. India has already suspended the Indus Waters Treaty with Pakistan in the aftermath of the Pahalgam terror attack.

Experts say the world has much to watch out for in 2026.

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“Today is not a moment of a massive global crisis, it’s a moment of poly-crises,” Marsh CEO John Doyle told CNBC. “It’s a lot for businesses to confront and to manage,” he stated.

Zahidi stated that even though leaders remain “highly distracted” by “wars that don’t end” and other concerns, the climate remains a long-term issue. “That huge looming existential risk around climate is still there. But our collective capacity and mind share … to act on it, that’s what’s been reduced,” she mentioned.

With inputs from agencies

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