Stable consumption and steady investment have contributed to growth in the South Asian nation, Nirmala Sitharaman has said
India has the capacity to absorb “shocks” from economic measures such as the recent tariffs imposed by the US, Finance Minister Nirmala Sitharaman has said.
Speaking at the Kautilya Economic Conclave in New Delhi on Thursday, she emphasized the importance of self-reliance at a time when India is facing the pressure of 50% tariffs on its exports from the administration of US President Donald Trump.
“Our capacity to absorb shocks is strong, while our economic leverage is evolving,” Sitharaman said. “Our choices will determine whether resilience becomes a foundation for leadership or merely a buffer against uncertainty.”
Sitharaman pointed out that stable consumption and steady investment have contributed to economic growth driven largely by domestic factors.
In August, Trump imposed 25% punitive tariffs on most Indian imports due to the country’s continued purchases of Russian oil. The levies were in addition to the 25% slapped on the South Asian nation after Washington and New Delhi could not conclude a trade agreement.
India has also faced US sanctions in the past, most notably for testing nuclear weapons in 1998.
“Global conflicts and strategic rivalries are redefining the landscape of international cooperation and confrontation,” Sitharaman said. “Long-standing alliances are being put to the test, while fresh partnerships and coalitions are taking shape.”
She added that the world faces “a structural transformation” and not “a temporary disruption.”
The Indian finance minister also noted that despite the current fractured global landscape, there is potential for new cooperative opportunities to emerge, provided they are approached with a constructive mindset.
New Delhi has repeatedly called Washington’s tariffs over its economic ties with Moscow unacceptable and has refused to bow to US pressure.
At the 2025 Shanghai Cooperation Organization (SCO) summit in Tianjin, Modi met with Chinese President Xi Jinping, marking a key diplomatic engagement as New Delhi and Beijing stabilize relations.
