New Delhi: We are in an era of unprecedented global volatility where the rules of international engagement are being rewritten. However, India’s growth remains firmly rooted in domestic factors, and the country’s capacity to absorb global shocks is strong, Finance Minister Nirmala Sitharaman said here on Friday.
She highlighted that India’s robust domestic foundation helps minimize the impact of global uncertainties. “We are in a shifting global landscape which resembles a zero-sum approach. The Indian economy is resilient and continues to grow sustainably,” FM Sitharaman said while delivering the inaugural address at the ‘Kautilya Economic Conclave 2025’ in the national capital.
“By 2047, becoming Viksit Bharat through self-reliance does not mean we wish to be a closed economy. We have to reach 8 per cent GDP growth to achieve the goal of becoming a developed nation,” she added.
According to the Finance Minister, India cannot afford to be passive spectators in today’s dynamic era. “We must be active participants. Nations need to make choices between new monetary architectures. No nation can insulate itself from systemic changes; we must prepare to engage with them. Tariffs, sanctions, and decoupling strategies are reshaping supply chains. International institutions need to reflect today’s realities,” she stressed.
FM Sitharaman further stated that the challenges faced today are not temporary disruptions but represent structural transformations. “The scale of the challenge is too big. We would be understating the issue if we called it anything less than structural transformation,” she said.
She added, “The world as a whole is looking to come out of uncertainty. The global order is shifting. The world that emerged out of the Cold War and pushed for globalisation seems to be a thing of the past. Rules of international engagement are being rewritten.”
The Finance Minister also pointed out that multilateral institutions are currently undermining confidence within the international community. She cited recent G20 discussions where experts deliberated on the need for reforms in these institutions to restore global stability.
Highlighting India’s twin-track approach, FM Sitharaman explained that the nation aims to simultaneously attain developed economy status by 2047 and strengthen self-reliance. She clarified that self-reliance does not imply pursuing a closed economy.
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