India’s Finance Minister, Nirmala Sitharaman, declared on Friday, October 3, 2025, that India possesses a formidable capacity to absorb external economic shocks, particularly as the world economy undergoes significant structural changes. She underscored that nations are currently tasked not only with managing widespread uncertainty but also with actively confronting deep-seated imbalances across trade, finance, and energy sectors.
“Geopolitical tensions are escalating, and new strategies involving sanctions, tariffs, and economic decoupling are fundamentally reshaping global supply chains,” Ms. Sitharaman explained during her address at the Kautilya Economic Conclave 2025 in New Delhi. “For India, these evolving dynamics present both potential vulnerabilities and clear evidence of our inherent resilience. Our ability to absorb shocks remains strong, and our economic influence is steadily growing.”
She elaborated, “The decisions we make will determine whether this resilience becomes a foundation for global leadership or merely a temporary shield against instability.”
Speaking at a session titled ‘Seeking Prosperity in Turbulent Times,’ Ms. Sitharaman observed that ongoing conflicts and strategic rivalries are redrawing the lines of international cooperation and discord. “Alliances once considered steadfast are now being tested, and new partnerships are continuously forming,” she noted. “This suggests that we are not merely facing a fleeting disruption, but rather a fundamental structural transformation of the global economic landscape.”
Emphasizing the Indian economy’s sustained strength, Sitharaman highlighted its consistent and sustainable growth. She attributed this stability to India’s domestic factors, particularly the consistent contributions of consumption and investment to its Gross Domestic Product over many years. This internal strength, she added, effectively minimizes the impact of external shocks on the nation’s overall growth trajectory.
“India’s emergence as a stabilizing force is neither accidental nor fleeting; instead, it is the direct outcome of a potent blend of various contributing factors,” Ms. Sitharaman concluded.