India’s capability to soak up exterior shocks is powerful when international financial system see structural transformation, says Sitharaman

Finance Minister Nirmala Sitharaman on Friday (October 3, 2025) stated India’s capability to soak up exterior shocks is powerful at a time when the world financial system is present process a structural transformation.

She stated the duty earlier than nations isn’t solely to handle uncertainty however to confront commerce, monetary and power imbalances.

“Geopolitical conflicts are intensifying. Sanctions, tariffs, and decoupling methods are reshaping international provide chains… For India, these dynamics spotlight each vulnerability and resilience. Our capability to soak up shocks is powerful, whereas our financial leverage is evolving.

“Our choices will determine whether resilience becomes a foundation for leadership or merely a buffer against uncertainty,” Ms. Sitharaman stated at Kautilya Economic Conclave 2025 in New Delhi.

Addressing the session on ‘Seeking Prosperity in Turbulent Times’, Ms. Sitharaman stated wars and strategic rivalries are redrawing the boundaries of cooperation and battle. “Alliances that once appeared solid are being tested, and new coalitions are emerging.” “Thus, what we face isn’t a brief disruption however a structural transformation,” she stated.

Stating that the Indian financial system is resilient and continues to develop sustainably, Sitharaman stated that with the regular share of consumption and funding within the total GDP over time, India’s development is firmly anchored in its home components, which minimises the affect of exterior shocks on total development.

“India’s rise as a stabilising force is neither accidental nor transient; instead, it results from a powerful combination of factors,” Ms. Sitharaman added.