NEW YORK: Despite a challenging global economic landscape, India is well-positioned to capitalise on emerging growth opportunities, Finance Minister Nirmala Sitharaman said on Monday, highlighting the country’s readiness to become a key partner for nations looking to diversify supply chains.
Delivering a lecture at Columbia University on “India’s Economic Resilience and Prospects Amidst a Challenging Global Environment,” Sitharaman emphasised that the world is witnessing a shift from traditional multilateral trade towards strategic economic partnerships, and India is poised to benefit from this transition.
Fundamentals strong
“India is not only focusing on strengthening its domestic capacities but is also prepared to weather external shocks,” she said, adding that the country’s macro-economic fundamentals remain strong despite global uncertainties.
Sitharaman pointed out that as global supply chains are being restructured, India could emerge as a critical partner for countries seeking alternative sources of goods and services.
“The shift towards a more fragmented global economy, marked by redefined alliances and changing trade patterns, could work to India’s advantage,” she said during the event organised by the Deepak and Neera Raj Center for Indian Economic Policies at Columbia University.
Economic reforms
The Finance Minister, currently on an official visit to the US, addressed a roundtable on ‘Investment Opportunities in India’ at the New York Stock Exchange and participated in a discussion on India’s economic reforms with IBM CEO Arvind Krishna.
Reflecting on India’s economic journey, Sitharaman noted that India has rapidly ascended the global economic ranks, moving from being the 10th largest economy in 2013 to the fifth largest today.
By 2027, the International Monetary Fund (IMF) projects India to become the third-largest economy in the world. She added that India’s contribution to global growth is expected to increase by 200 basis points over the next five years.
India’s economic reforms, particularly in trade and industrial policy, have laid the groundwork for further growth. Initiatives such as Production Linked Incentive (PLI) schemes and free trade agreements with key partners like the UAE and Australia are fostering a more competitive, export-oriented economy, she noted.
Geopolitical landscape
Sitharaman also underlined the importance of India’s role in the evolving geopolitical landscape, stressing that as emerging economies navigate a realignment of global power dynamics, India must balance economic interests with strategic concerns.
“Strengthening India’s financial sector and positioning the country as a hub for high-end goods, renewables, and pharmaceuticals will be key as the global economy continues to evolve,” she said.
She pointed to India’s rise in the Global Innovation Index as evidence of the country’s growing influence, particularly in areas like capital goods and healthcare.
Sitharaman also highlighted the soundness of India’s banking system, noting that the reduction in non-performing assets (NPAs) and improved asset quality reflect the success of financial reforms.
New era of prosperity
Looking forward, Sitharaman said India aims to define a new era of prosperity, not just for itself but for the global community. By 2047, as the country celebrates 100 years of independence, India aspires to play a central role in shaping global discourse on technology, sustainability, and inclusive growth.
India’s commitment to global engagement was underscored during the COVID-19 pandemic when it supplied vaccines to nations worldwide, she said.
“The coming decades will be marked by how effectively India harnesses its demographic dividend and strengthens its global partnerships,” she concluded, asserting that India is prepared to lead on both the economic and global policy fronts.
