News that fits you

Highlights

  • World facing profound trade and energy imbalances, says Sitharaman
  • Geopolitical conflicts, sanctions, and tariffs reshape global supply chains
  • India emerges as stabilising force amidst global economic turbulence

Latest news

Putin hails Ukraine gains, threatens more, in annual press conference

Putin hails Ukraine gains, threatens more, in annual press conference

OnePlus Pad Go 2 Review: No drama, just a good tablet  

OnePlus Pad Go 2 Review: No drama, just a good tablet  

Parliament Moment: Priyanka Gandhi shares tea with Rajnath Singh. PM Modi and Om Birla

Parliament Moment: Priyanka Gandhi shares tea with Rajnath Singh. PM Modi and Om Birla

Cold wave deepens in Kashmir as Chillai-Kalan nears, temperatures dip below freezing

Cold wave deepens in Kashmir as Chillai-Kalan nears, temperatures dip below freezing

Pakistan accuses India of attempting to undermine Indus treaty

Pakistan accuses India of attempting to undermine Indus treaty

Vande Mataram discussion in UP legislature to mark 150th anniversary: Yogi Adityanath

Vande Mataram discussion in UP legislature to mark 150th anniversary: Yogi Adityanath

Ashes 2025: Travis Head slams unbeaten 142 to crush England's Ashes hopes

Ashes 2025: Travis Head slams unbeaten 142 to crush England's Ashes hopes

Tipra Motha youth wing protests Bangladesh leader's anti-India remarks in Agartala

Tipra Motha youth wing protests Bangladesh leader's anti-India remarks in Agartala

India a 'stabilising force' in global economy, can withstand external shocks: FM Sitharaman

Finance Minister Nirmala Sitharaman said India stands out as a resilient economy amid global trade, energy, and geopolitical upheavals, highlighting its capacity to withstand external shocks.

Updated: Sep 02, 2022 10:53
|

PTI

India a 'stabilising force' in global economy, can withstand external shocks: FM Sitharaman

Finance Minister Nirmala Sitharaman on Friday said the world is facing "profound imbalances" in trade and energy security, and is undergoing a structural transformation, with India standing out as a 'stabilising force' that can withstand external shocks.

Sitharaman said geopolitical conflicts are intensifying, and sanctions and tariffs are reshaping global supply chains. India must continue to remain vigilant, and there is no room for complacency, she said, speaking at Kautilya Economic Conclave 2025 here.

"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," she said.

She 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.

"The task before us, therefore, is not simply to manage uncertainty but to confront imbalance. We must ask ourselves: how can we build a global order where trade is fair, finance serves productive ends, energy is both affordable and sustainable, and climate action aligns with development imperatives?" the minister said, addressing a session on 'Seeking Prosperity in Turbulent Times'.

She said there is a need to work on ways for international institutions to reflect today's realities rather than yesterday's hierarchies, besides ensuring that the voices of developing nations are no longer marginalised in rule-making, and are instead amplified in shaping the future.

Further, Sitharaman said dislocations define this new global era wherein trade flows are being reshaped, alliances are being tested, investments are being rerouted along geopolitical lines, and shared commitments are being re-examined.

"Thus, what we face is not a temporary disruption but a structural transformation," Sitharaman said.

She added that the foundations of the global order are shifting as the world that emerged after the end of the Cold War, which led to the expansion of globalisation, open markets and the pursuit of multilateral cooperation, now appears to be a relic of the past.

For three decades, a contested equilibrium allowed nations to pursue prosperity through integration and interdependence. That equilibrium has inevitably been upended, and the rules of international engagement are being rewritten, she said.

The global economy is currently facing headwinds, from an increase in trade tensions, higher tariffs, heightened global policy uncertainty and the ongoing Russia-Ukraine conflict.

Sitharaman said the global economy is faced with low investment, high cost of capital, volatile energy prices, and the tension between growth, stability, and sustainability.

In this context, India's rise as a stabilising force is neither accidental nor transient; instead, it results from a powerful combination of factors, she said.

Over the past decade, Sitharaman said, the government has focused on fiscal consolidation, improving the quality of capital expenditure, and reining in inflationary pressures.

"With the steady share of consumption and investment in the overall GDP over the years, India's growth is firmly anchored in its domestic factors, which minimises the impact of external shocks on overall growth. As a result, the Indian economy is resilient and continues to grow sustainably," she said.

ADVERTISEMENT

Up Next

India a 'stabilising force' in global economy, can withstand external shocks: FM Sitharaman

India a 'stabilising force' in global economy, can withstand external shocks: FM Sitharaman

Rupee breaches 91-mark against US dollar for first time in intra-day trade

Rupee breaches 91-mark against US dollar for first time in intra-day trade

Microsoft commits USD 17.5 billion investment in India: CEO Satya Nadella

Microsoft commits USD 17.5 billion investment in India: CEO Satya Nadella

CBI books Anil Ambani's son, Reliance Home Finance Ltd. in Rs 228 crore bank fraud case

CBI books Anil Ambani's son, Reliance Home Finance Ltd. in Rs 228 crore bank fraud case

RBI raises FY26 GDP growth projection to 7.3 pc

RBI raises FY26 GDP growth projection to 7.3 pc

RBI trims policy interest rate by 25bps to 5.25pc, loans to get cheaper

RBI trims policy interest rate by 25bps to 5.25pc, loans to get cheaper

ADVERTISEMENT

editorji-whatsApp

More videos

Rupee slumps to all-time low of 90.25 against US dollar in intra-day trade

Rupee slumps to all-time low of 90.25 against US dollar in intra-day trade

Reliance completes merger of Star Television Productions with Jiostar

Reliance completes merger of Star Television Productions with Jiostar

India to lead emerging market growth with 7pc GDP rise in 2025: Moody’s

India to lead emerging market growth with 7pc GDP rise in 2025: Moody’s

Nifty hits record high after 14 months; Sensex nears all-time peak

Nifty hits record high after 14 months; Sensex nears all-time peak

Reliance stops Russian oil use at its only-for-export refinery to comply with EU sanctions

Reliance stops Russian oil use at its only-for-export refinery to comply with EU sanctions

ED attaches fresh assets worth over Rs 1,400 cr in case against Anil Ambani's Reliance Group

ED attaches fresh assets worth over Rs 1,400 cr in case against Anil Ambani's Reliance Group

India signs one-year deal to import 2.2 million tonnes of LPG from US

India signs one-year deal to import 2.2 million tonnes of LPG from US

India International Trade Fair begins at Pragati Maidan amid tight security

India International Trade Fair begins at Pragati Maidan amid tight security

Stock markets decline in initial trade on foreign fund outflows, weak Asian peers

Stock markets decline in initial trade on foreign fund outflows, weak Asian peers

Amazon to lay off 30,000 office workers amid AI-driven cost cuts

Amazon to lay off 30,000 office workers amid AI-driven cost cuts

Categories

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.