Economy resilient, can mitigate global headwinds: Sitharaman

Amid challenges posed by the US tariffs, Union Finance Minister Nirmala Sitharaman on Friday emphasised that India’s growth driven by stable domestic consumption and investment mitigated the global headwinds such as tariffs, sanctions and decoupling of supply chains. Addressing the inaugural session of Kautilya Economic Conclave in New Delhi, she said India’s growth anchored in its domestic factors, which minimised the impact of external shocks on overall growth.

Referring to strategic reforms implemented over the past decade, she underlined that India’s rise as a stabilising force was “neither accidental nor transient”, instead it resulted from powerful combination of factors.

“Over the past decade, our government’s focus on fiscal consolidation, improved quality of capital expenditure and reining in inflationary pressures has been consistent. We have implemented strategic reforms that enhance the ease of doing business, promote financial inclusion and improve the quality of life for the average citizen in the country,” Sitharaman said.

Underlining that the Indian economy was resilient and continued to grow sustainably, the minister cautioned that there was no room for complacency or self-congratulation beyond a quite confidence in abilities to take the right decision and execute them.

She underscored the necessity of sustaining 8 per cent annual GDP growth to achieve ‘Viksit Bharat’ by 2047, clarifying that self-reliance did not mean a closed economy but strategic engagement in a transforming global order.

Addressing recent US trade measures, which included an additional 25 per cent tariff on most Indian imports imposed in August 2025, bringing the total to 50 per cent due to India’s Russian oil purchases and stalled bilateral trade talks, she positioned India as a stabilising force. She called for reforms in multilateral institutions to restore global confidence.