India’s Economy Is Resilient Amid Global Structural Shift: FM Sitharaman
Finance Minister Nirmala Sitharaman stated that the global economy is facing a structural transformation, not a mere disruption, fueled by intensifying geopolitical conflicts, sanctions, and shifting supply chains.
The core challenge for nations is two-fold: not only to manage uncertainty but also to confront trade, financial, and energy imbalances.
For India, however, the outlook is strong. The FM highlighted India’s robust capacity to absorb external shocks, driven by growth that is firmly anchored in domestic consumption and investment. This resilience minimizes the impact of global turbulence.
Sitharaman asserted that India’s rise as a stabilizing force is a conscious outcome, and the nation’s choices now will determine whether this resilience becomes a foundation for global leadership.
FM: Global Economy Redrawing, But India’s Shock-Absorption is “Strong”
- The Global Picture: Geopolitical conflicts, tariffs, and decoupling are creating a structural transformation in the world economy. Alliances are being tested, and new boundaries of cooperation are emerging.
- The Mandate: Nations must move beyond just managing uncertainty to confront trade, financial, and energy imbalances.
- India’s Edge: India’s capacity to absorb external shocks is declared “strong.” The economy’s growth is anchored in its domestic factors—steady consumption and investment share of GDP—making it resilient to global turmoil.
- The Future: The FM suggests India’s economic resilience is setting the stage for it to become a stabilising force and a potential global leader.
FM Sitharaman: We Face a ‘Structural Transformation,’ India’s Choices Must Lead to ‘Leadership’
Speaking at the Kautilya Economic Conclave 2025, Finance Minister Nirmala Sitharaman emphasized that the global economy is undergoing a structural transformation—not just a temporary disruption—as “sanctions, tariffs, and decoupling strategies are reshaping global supply chains.”
She stressed that the international task is to “confront trade, financial and energy imbalances.”
Crucially for India, the FM affirmed, “Our capacity to absorb shocks is strong… India’s growth is firmly anchored in its domestic factors,” minimizing the impact of external shocks. She concluded with a challenging note: “Our choices will determine whether resilience becomes a foundation for leadership or merely a buffer against uncertainty.”
