Finance Minister Nirmala Sitharaman on Friday highlighted India’s resilience amid ongoing global economic transformations, emphasizing the country’s strong capacity to absorb external shocks.
Structural Transformation in Global Economy
Speaking at the Kautilya Economic Conclave 2025, Sitharaman noted that the world economy is witnessing a structural transformation driven by geopolitical conflicts, trade disruptions, and shifts in global supply chains.
“Sanctions, tariffs, and decoupling strategies are reshaping global supply chains. For India, these dynamics highlight both vulnerability and resilience. Our capacity to absorb shocks is strong, while our economic leverage is evolving,” she said.
She added that nations must not only manage uncertainty but also address trade, financial, and energy imbalances, as alliances are being tested and new coalitions are emerging.
India’s Economic Resilience
The Finance Minister emphasized that India’s growth remains firmly anchored in domestic factors, including a steady share of consumption and investment in GDP. This foundation, she said, minimizes the impact of external shocks on overall economic growth.
“India’s rise as a stabilising force is neither accidental nor transient. Our choices will determine whether resilience becomes a foundation for leadership or merely a buffer against uncertainty,” Sitharaman remarked.
Outlook Amid Turbulent Times
Addressing the session on ‘Seeking Prosperity in Turbulent Times’, Sitharaman stressed that wars and strategic rivalries are redrawing boundaries of cooperation and conflict, and that countries need to strategically navigate these changes to ensure sustainable growth.
