Union Finance Minister Nirmala Sitharaman on Friday reaffirmed India’s economic resilience despite the growing global uncertainty triggered by tariff conflicts, supply chain disruptions, and geopolitical shifts. Speaking at the fourth edition of the Kautilya Economic Conclave in New Delhi, the finance minister said that India’s capacity to absorb shocks remains strong and that the nation’s growth trajectory is anchored largely in domestic factors.
She stressed that while international developments continue to create volatility, India’s underlying growth drivers remain intact. According to her, the ongoing global turmoil is unlikely to cause any major dent in India’s growth performance.
The Push Towards ‘Viksit Bharat’
One of the central themes of her address was India’s long-term vision of becoming a developed economy by 2047, a goal framed under the vision of ‘Viksit Bharat.’ For India to achieve this, the finance minister underlined the importance of sustaining GDP growth at 8 percent.
Suntry has been performing strongly. Haritharan noted that while the company compares to global peers, maintaining this higher growth rate consistently is vital to achieve the structural transformation India is aiming for. She clarified that this growth will not only come from external demand but will be powered by domestic consumption, investments, and reforms.
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Structural Transformation in the Global Economy
The finance minister described the current international landscape as one of structural transformation rather than just a temporary phase of disruption. According to her, the world is undergoing a fundamental shift that will reshape the way economies interact and operate.
She highlighted that this transformation includes shifting supply chains, rising tariff barriers, and changing dynamics in energy markets and technology adoption. These developments, she said, demand a new approach from emerging economies like India to ensure stability while also accelerating growth.
Multilateral Institutions Under Scrutiny
Sitharaman also drew attention to the changing role of multilateral institutions in global governance. She pointed out that confidence in these institutions is being undermined, limiting their ability to act as stabilizing forces in turbulent times.
Referring to recent G20 discussions, she said that global experts and policymakers had expressed concern over the need for deep reforms in multilateral institutions. Without such reforms, she suggested, it will be difficult for the world to restore stability in international financial and economic systems.
A Twin-Track Growth Strategy
Emphasising India’s unique approach to growth, Sitharaman said the country is pursuing a twin-track strategy. The first part of this strategy is focused on achieving developed economy status by 2047. The second is about strengthening self-reliance to ensure India is not vulnerable to external shocks.
She clarified that self-reliance does not mean turning inward or becoming a closed economy. Instead, it refers to building stronger domestic capabilities, fostering innovation, and ensuring that India can withstand global headwinds without losing growth momentum.
India’s Domestic Anchors of Growth
According to Sitharaman, one of the main reasons India remains insulated from some global shocks is that its growth is rooted in domestic demand and investment. Unlike many economies that rely heavily on global trade, India has the advantage of a large consumer base and a strong domestic market.
She highlighted that factors such as rising infrastructure spending, government-backed reforms, digitalization, and manufacturing growth are helping India maintain stability. These drivers, she suggested, will continue to shield India even if global conditions remain volatile.
Navigating Tariff Turmoil
The finance minister’s comments came at a time when global markets are grappling with increasing tariff barriers and trade disputes. Countries across the world are resorting to protective measures that are reshaping global trade flows. While such turmoil has caused volatility in many regions, Sitharaman expressed confidence that India’s domestic resilience will help cushion the impact.
She added that India’s policy framework is designed to keep the economy flexible and adaptive. This adaptability, she explained, will be essential as the world moves into an era of uncertain trade alignments and shifting economic priorities.
Confidence in India’s Growth Story
Despite the global headwinds, Sitharaman’s tone remained optimistic about India’s future. She reiterated that the country is well-positioned to continue its growth journey, provided it maintains reforms and focuses on building domestic capabilities.
She also stressed that achieving 8 percent GDP growth is not just an aspirational number but a necessity if India aims to transform into a developed economy within the next two decades. The finance minister emphasized that this level of growth will necessitate ongoing efforts from both the government and the private sector.
The Road Ahead
The finance minister’s speech at the Kautilya Economic Conclave underscored India’s confidence in facing global economic turbulence. With a focus on structural reforms, domestic growth drivers, and resilience against shocks, India is positioning itself as one of the few major economies capable of sustaining growth amid worldwide instability.
While challenges remain, particularly with tariff disputes and weakening global institutions, Sitharaman’s message was clear: India’s growth model is robust enough to withstand external pressures. By combining aspirations for global competitiveness with domestic self-reliance, the country is preparing itself for a more uncertain future.
Conclusion
Finance Minister Nirmala Sitharaman’s remarks reflect both confidence and caution. On the one hand, she acknowledged the unprecedented challenges posed by global structural changes, but on the other, she assured that India has the capacity to absorb shocks and continue on its path towards becoming a developed nation by 2047.
The call for 8 percent GDP growth serves as both a target and a reminder of the scale of effort needed. With strong domestic anchors and a twin-track strategy, India’s economic journey stands out as one of resilience and ambition in a world marked by volatility.
