Global economy seeing structural transformation, India's capacity to absorb shocks strong: FM

Finance Minister Nirmala Sitharaman on Friday (October 3) said India’s capacity to absorb external shocks is strong at a time when the world economy is undergoing a structural transformation.

She said the task before nations is not only to manage uncertainty but to confront trade, financial and energy imbalances.

”Geopolitical conflicts are intensifying. Sanctions, tariffs, and decoupling strategies are reshaping global supply chains… For India, these dynamics highlight both vulnerability and resilience. Our capacity to absorb shocks is strong, while our economic leverage is evolving.

”Our choices will determine whether resilience becomes a foundation for leadership or merely a buffer against uncertainty,” Sitharaman said at Kautilya Economic Conclave 2025 here.

Addressing the session on ’Seeking Prosperity in Turbulent Times’, Sitharaman said 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.” ”Thus, what we face is not a temporary disruption but a structural transformation,” she said.

Stating that the Indian economy is resilient and continues to grow sustainably, Sitharaman said that 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.

”India’s rise as a stabilising force is neither accidental nor transient; instead, it results from a powerful combination of factors,” Sitharaman added.Read about our editorial guidelines and ethics policy