NEW DELHI: Finance minister Nirmala Sitharaman said on Friday there will be limited impact of external shocks on India’s growth, due to strong domestic consumption and investment.
“The Indian economy is resilient and continues to grow sustainably,” she said at the Kautilya Economic Conclave.
The Indian economy is estimated to have grown 7.8% during the June quarter on the back of a revival in consumption, which is expected to get a further boost after the reduction in GST rates last month. India is projected to remain the world’s fastest growing major economy and earlier this week, the Reserve Bank of India (RBI) revised the annual growth projection for FY26 to 6.8%.
RBI governor Sanjay Malhotra also said India has distinguished itself as an anchor of stability in a turbulent global economy due to strong reserves, low inflation and narrow current account deficit. “Despite all odds, the economy seems well settled into an equilibrium of resilient growth,” he said at the event organised by the finance ministry and the Institute of Economic Growth (IEG).
“Current trade policies and restrictions could damage, perhaps permanently, growth in some of the economies,” Malhotra said, while also noting the fiscal strain on countries across the globe.
The economy is grappling with the impact of a stiff 50% tariff on shipments to the US, casting some shadow on exports but govt has refused to buckle under pressure from Donald Trump to open up the farm sector and stop purchase of Russian oil. Even other countries are dealing with unilateral tariff actions by the American president.
“The international order is morphing. Trade flows are being reshaped, alliances are being tested, investments are being rerouted along geopolitical lines, and shared commitments are being re-examined,” Sitharaman said.
She said that the world is seeing structural transformation and not just temporary disruption. “Wars and strategic rivalries are redrawing the boundaries of cooperation and conflict. Alliances that once appeared solid are being tested, and new coalitions are emerging. For India, these dynamics highlight both vulnerability and resilience. Our capacity to absorb shocks is strong, while our economic leverage is evolving.”
The minister said the world is facing an era of unprecedented global uncertainty and volatility, and the task before nations is not only to manage uncertainty but to confront trade, financial and energy imbalances.
IEG president N K Singh said that the reforms initiated by govt will help the economy. “Notwithstanding the uncertainties, the deepening of the structural reforms process continues at a formidable pace. The far-reaching changes to GST will enhance fiscal space, boost consumption, ameliorate ease of business, reinforce investor confidence, and seek higher economic growth. It would be an important factor in mitigating the adverse effects of external factors.”
“The Indian economy is resilient and continues to grow sustainably,” she said at the Kautilya Economic Conclave.
The Indian economy is estimated to have grown 7.8% during the June quarter on the back of a revival in consumption, which is expected to get a further boost after the reduction in GST rates last month. India is projected to remain the world’s fastest growing major economy and earlier this week, the Reserve Bank of India (RBI) revised the annual growth projection for FY26 to 6.8%.
RBI governor Sanjay Malhotra also said India has distinguished itself as an anchor of stability in a turbulent global economy due to strong reserves, low inflation and narrow current account deficit. “Despite all odds, the economy seems well settled into an equilibrium of resilient growth,” he said at the event organised by the finance ministry and the Institute of Economic Growth (IEG).
“Current trade policies and restrictions could damage, perhaps permanently, growth in some of the economies,” Malhotra said, while also noting the fiscal strain on countries across the globe.
The economy is grappling with the impact of a stiff 50% tariff on shipments to the US, casting some shadow on exports but govt has refused to buckle under pressure from Donald Trump to open up the farm sector and stop purchase of Russian oil. Even other countries are dealing with unilateral tariff actions by the American president.
“The international order is morphing. Trade flows are being reshaped, alliances are being tested, investments are being rerouted along geopolitical lines, and shared commitments are being re-examined,” Sitharaman said.
She said that the world is seeing structural transformation and not just temporary disruption. “Wars and strategic rivalries are redrawing the boundaries of cooperation and conflict. Alliances that once appeared solid are being tested, and new coalitions are emerging. For India, these dynamics highlight both vulnerability and resilience. Our capacity to absorb shocks is strong, while our economic leverage is evolving.”
The minister said the world is facing an era of unprecedented global uncertainty and volatility, and the task before nations is not only to manage uncertainty but to confront trade, financial and energy imbalances.
IEG president N K Singh said that the reforms initiated by govt will help the economy. “Notwithstanding the uncertainties, the deepening of the structural reforms process continues at a formidable pace. The far-reaching changes to GST will enhance fiscal space, boost consumption, ameliorate ease of business, reinforce investor confidence, and seek higher economic growth. It would be an important factor in mitigating the adverse effects of external factors.”
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