‘India well poised to take advantage of its strategic economic partnerships’: FM Sitharaman

Finance Minister Nirmala Sitharaman, expressing confidence in India's ability to capitalise on new growth opportunities despite challenges posed by the global economic environment, highlighted its potential to become a key partner for countries seeking to diversify their supply chains. She was speaking at Columbia University in New York on Monday.

India is focused on enhancing domestic capacities and building resilience against external shocks, said FM during her special lecture on 'India’s Economic Resilience and Prospects Amidst A Challenging and Uncertain Global Environment', organised by the Deepak and Neera Raj Center on Indian Economic Policies. 

“While the past decades saw global growth led by broad multilateral trade, the coming years, I think, will likely be defined by strategic economic partnerships and India is very well poised to take advantage of this transition,” said Sitharaman. 

“The shift towards a more fragmented global economy, characterised by redefined alliances and changing trade patterns, could in fact work to India's advantage. As nations re-evaluate their supply chains, India hopes to become a key partner for many countries seeking to diversify their sources of goods and services,” she said.

Finance Minister Nirmala Sitharaman arrived in New York on Sunday after her visit to Mexico, where she chaired the Tech Leaders Roundtable in Guadalajara and visited the TCS headquarters. In New York, she addressed a Roundtable on 'Investment Opportunities in India' at the New York Stock Exchange. She also participated in a fireside chat on India’s economic reforms and growth with IBM Chairman and CEO Arvind Krishna.

Following her engagements in New York, Sitharaman is scheduled to travel to Washington DC. There, she will take part in the Annual Meetings of the International Monetary Fund (IMF) and the World Bank. Additionally, she will attend the 4th G20 Finance Ministers and Central Bank Governor (FMCBG) Meetings, the G20 Joint Meeting of FMCBGs, Environment Ministers, and Foreign Ministers, as well as the G7 – Africa Ministerial Roundtable.

“The world today grapples with multiple challenges, such as the conflict in the Middle East and between Russia and Ukraine,” said Sitharaman, highlighting the possibility of other destabilising events such as the dollar liquidity shocks, increases in global tariffs due to trade wars and oil price shocks at the same time. 

“In addition to these events, the emergence of a veritable China terms of trade, and that as a shock, has made it necessary for countries to take measures to safeguard their domestic production,” she said.

Sitharaman assured that India's macro-economic fundamentals remain strong. She noted India's rise from the 10th largest economy in 2013 to the fifth largest currently, with the International Monetary Fund projecting it to become the third-largest by 2027. India's contribution to global growth is expected to increase by 200 basis points over the next five years.