Indian economy is resilient and continues to grow sustainably, says FM Sitharaman

Finance Minister Nirmala Sitharaman on Friday emphasised that India’s growth is firmly rooted in domestic fundamentals, even as global volatility and shifting international rules redefine the world economic order.

Speaking at the inaugural session of the Kautilya Economic Conclave 2025 in New Delhi, the finance minister highlighted the resilience of the Indian economy and its capacity to absorb external shocks.

“We are in a shifting global landscape that resembles a zero-sum approach. The Indian economy is resilient and continues to grow sustainably,” Sitharaman said . She added that India’s pursuit of Viksit Bharat 2047 through self-reliance does not imply a closed economy. “We need to achieve 8 per cent GDP growth to attain the status of a developed nation,” she said.

Stressing the need for active participation by nations amid global economic changes, Sitharaman said, “We must be active participants. Tariffs, sanctions, and decoupling strategies are reshaping supply chains. International institutions need to reflect today’s realities,” she noted.

Highlighting the structural nature of current global challenges, the minister said: “The scale of the challenge is immense. It would be an understatement to call this a temporary disruption; it is a structural transformation. The world is looking to emerge from uncertainty. The post-Cold War global order that pushed for liberalisation and globalisation seems to be a thing of the past. Rules of international engagement are being rewritten.”

Sitharaman also underlined the declining trust in multilateral institutions, referring to recent G20 discussions that explored reforms to strengthen global stability.

The finance minister reiterated India’s twin-track approach: striving to attain developed nation status by 2047 while strengthening self-reliance, clarifying that the latter does not mean isolation from global markets.

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