In turbulent global economy, FM Sitharaman says India’s growth resilience remains intact
Finance Minister says global turmoil will have limited impact on GDP, stresses domestic growth drivers and India’s role in reshaping new world order at Kautilya Economic Conclave.
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Union Finance Minister Nirmala Sitharaman has said that India must sustain a growth rate of 8 percent to achieve its goal of becoming a developed economy by 2047, while emphasising that ongoing global turmoil will have only a limited impact on India’s GDP.
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Speaking at the fourth edition of the Kautilya Economic Conclave (KEC) in New Delhi, Sitharaman said India’s growth trajectory is anchored in domestic factors, even as the world navigates “an era of unprecedented global uncertainty and volatility,” which she described as a structural transformation rather than a temporary disruption.
The finance minister underscored India’s twin-track approach—pursuing developed economy status by 2047 while strengthening self-reliance. She clarified that self-reliance does not mean a closed economy, but rather active participation in shaping outcomes in the new global order.
“History teaches us that crises often precede renewal,” Sitharaman said. “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.”
On the shifting global landscape, she warned that international rules of engagement are being rewritten amid low investment, volatile energy prices, sanctions, tariffs, and geopolitical rivalries. “Alliances that once appeared solid are being tested, and new coalitions are emerging,” she noted.
For India, these dynamics highlight both “vulnerability and resilience,” she said. “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.”
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This year’s conclave is themed “Seeking Prosperity in Turbulent Times” and has drawn over 75 participants from more than 30 countries. The three-day event will conclude on October 5 with Union Minister for External Affairs Dr. S. Jaishankar sharing reflections on India’s foreign and economic policy.
