New Delhi: Union finance minister Nirmala Sitharaman said that India cannot afford to remain a passive spectator as geopolitical conflicts and actions such as sanctions and tariffs reshape global supply chains, while observing that the country’s capacity to absorb these shocks remains strong.
While speaking after inaugurating the Kautilya Economic Conclave 2025 in New Delhi on Friday, Sitharaman highlighted the uncertainty shaping today’s world and how it affects both global and Indian interests. She said geopolitical tensions and economic shifts were changing how countries work and trade with each other.
India has shown strength despite global disruptions, she said, adding: “For India, these dynamics highlight both vulnerability and resilience. Our capacity to absorb shocks is strong, while our economic leverage is evolving of.”
“Our choices will determine whether resilience becomes a foundation for leadership or merely a buffer against uncertainty,” she said, noting what India chooses to do now will shape its future position in the world.
The finance minister also pointed out that today’s fractured global order may eventually bring new opportunities for cooperation if approached with the right mindset.
“History teaches us that crises often precede renewal. The fragmentation we see today may give rise to more sustainable and unforeseen forms of cooperation,” she said.
Fairness and inclusion must guide any new economic partnerships, she insisted. “The challenge is to ensure that inclusive principles shape cooperation. For developing countries, this is a necessity, not just a romantic aspiration,” the minister said.
Sitharaman also urged emerging economies to take a more assertive role in shaping decisions that affect them. “In a world where decisions elsewhere determine our destinies, we must be active participants, shaping outcomes where possible and preserving autonomy where necessary,” she said.