At the Kautilya Economic Conclave session, Union Finance Minister Nirmala Sitharaman stated that under current global economic uncertainty, which has become a permanent state, national security requires ensuring structural autonomy regarding strategic resources, as the security of strategic resources is at the center of macroeconomic policy.
Furthermore, she advocated for private investment to lead the economic cycle, including funding research, innovation, and upskilling citizens to adapt to the changing world of work. She emphasized that the global financial architecture must reflect sources of growth.
Sitharaman noted that building resilience is a continuous process, not a one-time event. She is confident that India is approaching the coming years with strong positions.
These statements gained particular significance against the backdrop of global economic instability caused by US tariffs and conflicts in Ukraine and West Asia. These events have disrupted global supply chains and led to rising prices for essential commodities.
The Minister added that price shocks can be mitigated using monetary and fiscal tools, but quantity shocks test the reserves of buffer goods and the efficiency of delivery systems, thereby challenging the state's very capacity.
Sitharaman pointed out that supply chains optimized solely for cost reduction carry hidden fragility. To replace dependence on a single, vulnerable source with internal operational depth, the government has launched programs focused on rare earth minerals, critical minerals, semiconductors, and small modular nuclear reactors.
For India, resilience means strengthening the structural foundations laid over the last decade, such as the development of entrepreneurship, emphasis on efficient last-mile delivery, infrastructure creation, and managing prices of essential goods and external pressures. She stressed that the test of the coming years will be partially invisible: these are shocks that India absorbs without negative impact on households and businesses.
Evidence of this resilience lies in counterfactual scenarios—outcomes that did not happen, such as an inflation spiral that did not strengthen, fuel station queues that did not arise, banking stress that did not manifest, and fiscal correction that was never forced. Sitharaman concluded that economists should pay as much attention to these counterfactuals as they do to growth indicators.
Speaking about open, predictable, and rules-based global economic relations, Sitharaman stated that states should interact with each other through dialogue and agreed arrangements, rather than allowing geopolitical disagreements to become obstacles to trade and investment.
