India Resilient Amid Global Shocks, Notes U.S. Tariff Dispute

At the Kautilya Economic Conclave 2025, Finance Minister Nirmala Sitharaman said India's economy is resilient and can absorb external shocks because growth is anchored in strong domestic demand, steady consumption and investment, fiscal consolidation, structural reforms and controlled inflation. She warned the world economy is undergoing a structural transformation—trade flows, alliances and financial systems are being reshaped by geopolitical rivalries, sanctions, tariffs and decoupling—creating pervasive uncertainty and difficult trade-offs for developing nations. Sitharaman described India as a stabilising force whose choices will determine whether resilience becomes a foundation for leadership or merely a buffer, and she urged active participation to preserve autonomy while pursuing inclusive cooperation. She acknowledged vulnerabilities as economic leverage evolves, pointing to intensified conflicts, rerouted investments along geopolitical lines and an ongoing U.S.-India tariff dispute, and called for managing trade, financial and energy imbalances amid high borrowing costs and investment needs. She reiterated the government's target of reaching 8% GDP growth and achieving Viksit Bharat by 2047 and called for reforming international institutions to better reflect developing nations' voices.