India’s policy response to trade restrictions has focused on market diversification: FM Sitharaman

FM Nirmala Sitharaman

India’s response to the growing challenge of trade and financial restrictions has been to diversify markets, promote infrastructure-led growth, and implement structural reforms to enhance competitiveness and productivity, Finance Minister Nirmala Sitharaman said on July 7.

The minister was speaking at the BRICS Finance Ministers and Central Bank Governors (FMCBG) meeting held in Rio de Janeiro, Brazil. The event, hosted under Brazil’s BRICS presidency, brought together leaders to deliberate on global economic challenges and the role of BRICS in advancing reforms in international financial institutions.

“India's demonstrated resilience through a combination of strong domestic demand, prudent macroeconomic management, and targeted fiscal measures,” Sitharaman said, according to a post by the Finance Ministry on X.

Sitharaman’s remarks come against the backdrop of intensifying protectionism, supply chain shifts, and fragmentation in the global economy. India’s emphasis on market diversification and structural reforms highlights its strategy to mitigate external vulnerabilities while positioning itself as a key driver of growth in the Global South.

The minister emphasised that BRICS is a vital platform for promoting inclusive multilateralism, particularly at a time when global institutions are struggling with legitimacy and representation issues. She urged BRICS countries to take the lead in reinforcing cooperation and advocating for credible reforms that amplify the voice of the Global South.

On climate action, Sitharaman said that while South-South cooperation is essential to advancing climate and development objectives, the Global South should not bear the main burden of climate action. “BRICS countries are well placed to deepen cooperation on sustainable development,” she stated, reiterating the need for fair and balanced climate commitments globally.

The BRICS Finance Ministers and Central Bank Governors meeting is an important forum for member countries to coordinate positions on global financial stability, development finance, and institutional reforms.