Washington, Aug 26: The global economy has weathered the oil shock caused by the closure of the Strait of Hormuz “better than feared” due to various factors, including an investment boom in artificial intelligence, IMF Managing Director Kristalina Georgieva has said.

“What started out as a US phenomenon with AI is now becoming a growth engine for the global economy, with other countries ramping up construction of data centres and other infrastructure,” Georgieva told journalists on Tuesday.

She said the global economy had “weathered the energy shock caused by the closure of the Strait of Hormuz better than we feared” due to a combination of factors, including drawdowns of oil and gas reserves and increases in non-Gulf supply.

“And it is enjoying the tailwinds from an AI investment boom, most notably in the US, where both corporate earnings and consumer demand remain strong,” Georgieva said ahead of the G-20 finance ministerial meeting in Asheville, North Carolina, next week.

She said the global economy was witnessing a tug-of-war between the negative supply shock from West Asia and the positive demand shock from AI.

“The net impact of these two forces is asymmetric across countries and depends on their exposure to energy disruptions, macroeconomic vulnerabilities, and their position in the AI chain,” Georgieva said.

Georgieva said risks to the outlook were more balanced than around the Spring Meetings but remained tilted to the downside, while uncertainty remained high.

“Mounting fiscal pressures, as evidenced by rising bond yields, and a stalled disinflation process are sources of worry for both markets and policymakers,” she said.

The IMF chief said oil and gas reserves were shrinking and the northern hemisphere winter would arrive before long.

“This means the energy shock is not over: a renewed rise in oil prices could fuel inflation, forcing central banks to retain a restrictive policy stance, with knock-on implications for debt service and economic activity,” she said.

Georgieva said the future impact of AI remained subject to significant uncertainties, including possible risks to financial stability.

“Should the outlook deteriorate, it will further widen the dispersion of growth prospects around the world. Some countries, especially low-income countries that depend on fuel imports, are already in a tough spot,” she said.

For low-income countries, disruptions in the supply of oil, gas and other key commodities such as fertiliser could translate into food insecurity, a problem potentially exacerbated by extreme weather, Georgieva said.

“The risk of falling behind on AI is also more prominent in the developing world,” she said.

In July, the IMF lowered its 2026 global growth forecast to 3 per cent, warning of downside risks from the West Asia conflict, trade fragmentation and uncertainties surrounding artificial intelligence.

The institution’s next revision of its growth outlook is due in mid-October during the IMF and World Bank annual meetings in Bangkok.

The Jammu and Kashmir Entrepreneurship Development Institute (JKEDI), in collaboration with Government Degree College for Women, Pulwama, today successfully organised the Startup Idea Challenge 2.0.

The programme forms part of JKEDI’s broader efforts under the J&K Startup Policy 2024–27 to foster innovation, entrepreneurship, and youth-led startups across the Union Territory.

Professor (Dr.) Sami Jan, Principal, Government Degree College for Women, Pulwama, attended event as the Chief Guest. The event was attended by distinguished experts and faculty members from various domains, including Nafia Nazir, Range Officer (South Kashmir), JKEDI;

Raiyees Manzoor, District Nodal Officer, JKEDI Pulwama; Dr Tariq H. Ganai, Associate Professor and Former Head, Department of Food Technology, Islamic University of Science and Technology (IUST); Dr Nisar Ahmad Wani, Head, Department of Economics, GDC Women, Pulwama; Dr Tanveer Bilal, Head, Department of Bio-resources, Government Degree College for Women, Pulwama; Professor Surya Shafi, Department of Commerce, GDC Women, Pulwama; Professor Iftikhar, Department of Sociology, GDC Women, Pulwama and M. Ayoub, Senior Bank Official, Cluster office, J&K Bank Pulwama.

The programme witnessed enthusiastic participation from students, who presented a diverse range of innovative ideas before the selection committee. Out of the ideas pitched, seven were shortlisted to represent District Pulwama at the state-level competition.

Professor (Dr) Sami Jan congratulated the selected candidates and encouraged them to put in their best efforts to excel in the final round. Raiyees Manzoor, District Nodal Officer, JKEDI also appreciated the innovative concepts presented and congratulated the participants for taking their first step towards innovation and emerging as the startups of tomorrow.

The Startup Idea Challenge 2.0 provides selected innovators with opportunities for mentorship, incubation support, and pathways to seed funding and co-working facilities at JKEDI hubs, helping transform promising ideas into viable entrepreneurial ventures.

Srinagar, Aug 24: It is early morning in a Kashmir Kandur shop (baker shop). Customers are picking up fresh bread. At the counter, alongside the cash box, sits something that would have seemed unfamiliar here a decade ago — a QR code.

A customer takes out a phone, scans the code, enters the amount and walks away.

There is no exchange of notes, no search for change and, increasingly, no need for the shopkeeper to maintain a running credit entry.

The same scene can be found across Kashmir’s markets.

At grocery shops, mutton outlets, chicken shops, vegetable stores and even small roadside businesses, the small square QR code has become a familiar feature of the counter. In many shops, it is accompanied by a small audio device that announces when a payment has been received.

For Kashmir’s shoppers, the change has been gradual but profound.

A decade ago, everyday shopping largely depended on cash. If a customer did not have enough money, there was always the locality’s shopkeeper’s notebook — a handwritten record of what had been bought on credit and what was still owed.

Today, a mobile phone can do what a wallet once did.

The transformation is closely linked to the Unified Payments Interface (UPI), which completes 10 years on August 25.

Launched in 2016 by the National Payments Corporation of India under the regulatory oversight of the Reserve Bank of India, UPI has grown from a new payment system into a central part of everyday commerce.

According to the Press Information Bureau, annual UPI transaction volumes have risen nearly 13,000-fold, from 1.78 crore transactions in its first year to more than 24,162 crore transactions in 2025-26.

But in Kashmir’s markets, the impact of UPI is perhaps better understood through aRs 20 purchase than through billions of transactions.

At a Kashmir Kandur shop in Srinagar, shopkeeper Muhammad Shafi said the change in payment habits has been particularly noticeable among younger customers.

“Earlier, almost everyone paid in cash. If someone did not have the exact amount, we had to arrange change or sometimes write the amount in the notebook. Now many customers simply scan the QR code and the payment is done,” he said.

Shafi said digital payments have become part of the routine of running the shop.

“Even for a small purchase, people are comfortable paying through their phones. They don’t think of it as something special anymore,” he said.

The shift is equally visible at grocery stores.

Farooq Ahmad, who runs a grocery shop in Buchpora, said the QR code has become as important to his business as the cash drawer.

“Earlier, cash was everything. People would come with notes and coins, and if they were short of money, they would ask us to put it on credit. Now many customers don’t carry cash at all,” he said.

Ahmad said digital payments have also reduced the problem of small change.

“Sometimes a customer buys something for Rs 47 or Rs 83. Earlier we had to look for change. Now they pay the exact amount,” he said.

At a mutton shop in Srinagar, the weighing scale and butcher’s knife share counter space with another increasingly familiar object — a QR code.

Customer Aijaz Ahmad said he now uses digital payments for purchases that he once would have paid for exclusively in cash.

“Earlier, I would make sure I had cash before going to the market. Now I just carry my phone. Whether I am buying groceries or mutton, I can pay directly,” he said.

The same pattern has emerged at chicken shops.

Bilal Ahmad, a poultry shop owner in Anantnag, said digital payments have become part of the daily routine.

“Customers ask for the QR code almost automatically. They scan it, show the payment confirmation and leave. For us also, it is easier because there is a record of the transaction,” he said.

For shopkeepers, however, one of the most noticeable developments has been the arrival of audio payment devices.

The small speakers, placed near cash counters, announce incoming payments, allowing merchants to confirm transactions without constantly checking their phones.

“When the shop is crowded, I cannot look at the phone after every payment. The audio device tells me immediately that the money has come,” said a shopkeeper in Srinagar.

For consumers, the change is even simpler: carrying less cash.