Finance Minister Nirmala Sitharaman on April 17 said that the intensification of the tariff wars and the rise of protectionist policies have the potential to disrupt global supply chain.
"The intensification of tariff wars and the rise of protectionist policies have the potential to disrupt global supply chains, increase production costs and create uncertainty in investment decisions across borders as well," Sitharaman said during BSE 150 year celebration in Mumbai.
The FM added that amidst this volatile, uncertain, complex, and ambiguous (VUCA) world — one thing stands firm: the strength of India’s economic fundamentals and macro-economic prudence.
"We offer investors a combination of policy stability and growth, governance and innovation, macro-economic prudent policies, democratic institutions and youthful dynamism," she added.
She also said that the tariff war has had a ripple on the financial markets across, including India.
The imposition of the tariffs by US President Donald Trump earlier this month jolted the global markets, including India. Due to this there were growing concerns of potential slowdown in the global growth leading to recession in major economies.
However, uncertainties reduced after Trump paused the reciprocal tariffs for 90 days.
Sitharaman said that the retail participation is also significant and an increase in their participation is a reflection of India's strong economic fundamentals.
She added that India's financial markets have shown remarkable saviors despite recent global uncertainties.
The FM further said that retail investors are coming to the stock markets and taking risk, instead of sticking to the bank fixed deposits amid transparency element in corporate governance, which has given them a chance to learn better about companies and choose to invest them in them directly.
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