Global Uncertainty Is Structural, Not Temporary: FM Sitharaman

Finance Minister Nirmala Sitharaman on Friday said the world is undergoing a structural transformation, not a temporary disruption, as she addressed the 4th Kautilya Economic Conclave 2025. She said that the foundation of the global order is shifting rapidly, with traditional rules of international engagement being rewritten.

“We are in an era of unprecedented global uncertainty,” Sitharaman said, adding that the expansion of globalisation now appears to be a relic of the past. She noted that shifts which once took decades are now unfolding within weeks, leaving policymakers grappling with volatility and diminished confidence in continuity.

The minister stressed that India's rise as a stabilising force is neither accidental nor transient. With a steady share of consumption and investment, she said India's growth is anchored in domestic factors, supported by improved capital expenditure and controlled inflationary pressures.

On trade and energy, Sitharaman highlighted the acute trade-offs faced by developing economies, especially in a world trending toward decoupling. She pointed out that trade imbalances have hollowed out some nations, while energy dependencies have made others vulnerable to costly imports.

Calling for reform of multilateral institutions, she said they must reflect today's realities rather than outdated frameworks. “Problems exist, and we'll have to find solutions. A new equilibrium must be decided,” she said.

Sitharaman also emphasised that self-reliance is key to achieving the 2047 Viksit Bharat goal, but clarified that it does not mean shutting the economy. Reaching 8% GDP growth will be crucial to gaining momentum toward that vision, she added.

The minister acknowledged that India's strategic independence comes at the cost of consistent performance, and said the country must remain open to possibilities that were previously unconsidered. “Fragmentation may result in unforeseen cooperation,” she said, urging India to be an active participant in shaping the new global order while preserving its autonomy.