India Weathered Global Economic Turbulence With Fundamentals Intact, Says Nirmala Sitharaman

Finance Minister Nirmala Sitharaman has said India has successfully navigated a period of significant global economic turbulence while keeping its economic fundamentals strong. Speaking at the Kautilya Economic Conclave 2026, Sitharaman highlighted the resilience of the Indian economy and pointed to reforms and policy measures undertaken in recent years as important factors behind its ability to withstand external pressures.

Sitharaman said the global economy continues to face several challenges, including elevated public debt, geopolitical uncertainties and disruptions affecting trade and investment. Against this backdrop, she said India had focused on strengthening its domestic foundations while continuing to pursue structural reforms. The finance minister pointed to developments in the banking sector, saying reforms had helped improve the resilience of financial institutions. She also highlighted the government’s efforts to strengthen infrastructure and expand the country’s physical connectivity.

According to Sitharaman, investment in highways, railways, airports and ports has increased significantly, creating greater capacity while supporting economic activity. She said infrastructure development remained an important component of India’s broader strategy to sustain economic growth and improve productivity.

The finance minister also referred to the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC) as major structural reforms. She said these measures had contributed to improving the functioning of the economy and creating a more integrated and transparent business environment.

Labour reforms were another area highlighted by Sitharaman. She pointed to the implementation of the labour codes as part of efforts to simplify the regulatory framework and support employment and economic activity. Sitharaman also discussed India’s approach to inflation management. She said maintaining price stability remained an important priority and that the government and the Reserve Bank of India had worked to contain inflationary pressures while supporting economic growth.

Her remarks came at a time when several major economies are dealing with high levels of public debt and uncertainty over the global economic outlook. Sitharaman said India’s experience demonstrated the importance of strengthening domestic economic fundamentals while remaining connected to the global economy. She also stressed the need for continued reforms and investment to ensure that the country remains capable of responding to external shocks. Infrastructure expansion, financial-sector strengthening and policy reforms, she indicated, would remain important elements of India’s economic strategy.