Union Finance Minister Nirmala Sitharaman says ongoing global turmoil may have a limited impact on India's GDP growth. She added that India's growth drivers are anchored in domestic factors. She emphasised that to reach 'Viksit Bharat' goals, India must grow at a rate of 8 percent.
Inaugurating the fourth edition of the Kautilya Economic Conclave in New Delhi on Friday, the finance minister highlighted the country is navigating an era of unprecedented global uncertainty and volatility, calling it a structural transformation rather than a temporary disruption.
Sitharaman pointed out that the global order is shifting, with multilateral institutions currently undermining confidence in the international community. She cited the recent G20 discussions, where experts deliberated on the need for reforms in multilateral institutions to restore stability.
Highlighting India's twin-track approach, she said the nation aims to simultaneously attain developed economy status by 2047 and strengthen self-reliance, clarifying that self-reliance does not imply pursuing a closed economy.
"History teaches us that crises often precede renewal. The fragmentation we see today may give rise to more sustainable and unforeseen forms of cooperation. The challenge is to ensure that inclusive principles shape cooperation. For developing countries, this is a necessity, not just a romantic aspiration. We cannot afford to be passive spectators in a world where decisions elsewhere determine our destinies. We must be active participants, shaping outcomes where possible and preserving autonomy where necessary," the finance minister said during the summit.
FM on changes in global order
The Finance Minister also stressed that the rules of international engagement are being rewritten, and the scale of challenges faced is enormous. Any new global equilibrium must consider multiple complex variables, she added.
Sitharaman further observed that the arc of history is bending, manifesting in low investment and volatile energy prices, signaling pervasive doubt in the global economic landscape.
On current world order, Sitharaman said, "geopolitical conflicts are intensifying. Sanctions, tariffs, and decoupling strategies are reshaping global supply chains. Wars and strategic rivalries are redrawing the boundaries of cooperation and conflict. Alliances that once appeared solid are being tested, and new coalitions are emerging."
Talking about these changing scenarios for the country, the finance minister added, "For India, these dynamics highlight both vulnerability and resilience. Our capacity to absorb shocks is strong, while our economic leverage is evolving. Our choices will determine whether resilience becomes a foundation for leadership or merely a buffer against uncertainty."
This year’s theme, “Seeking Prosperity in Turbulent Times”, is relevant both in the context of India’s growth aspirations and its success in navigating times of exceptional uncertainty, turbulence and changing geopolitics. Building on its rich experience, the KEC has significantly improved both its quality and international presence with 75 participants from abroad, representing over 30 countries, to focus on contemporary challenges.
Union Minister for External Affairs Dr S Jaishankar will close the proceedings with reflections on India’s foreign and economic policy on October 5, 2025.
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