India's Economic Resilience Strengthens Global Leadership Prospects
Finance Minister Nirmala Sitharaman on Saturday emphasized the need to maintain open, predictable, and rules-based global economic relationships, urging countries to pursue dialogue and negotiated agreements rather than allow geopolitical tensions to become barriers to trade and investment. Speaking at the 5th Kautilya Economic Conclave in New Delhi, Sitharaman noted that geopolitical tensions, trade barriers, and thinner financial buffers are reshaping the global economy. She stressed that international trade policy should provide greater certainty for businesses, respect national development priorities, and avoid unnecessary restrictions that fragment markets.
Sitharaman described uncertainty as a "standing condition" of the global economy, emphasizing that building resilience is "not a one-time exercise" but a continuous process. She highlighted the government's efforts to strengthen strategic autonomy through initiatives including the National Critical Mineral Mission, Rare Earth Corridors, and the India Semiconductor Mission, designed to replace fragile single-source dependencies with domestic capacity. The finance minister also called for strengthening multilateral development banks, an effort advanced under India's G20 presidency, noting that the global financial architecture must reflect economies where growth now lies.
Addressing the changing nature of work, Sitharaman stressed that artificial intelligence and frontier technologies are reshaping workplaces and employment demands, requiring skill-development initiatives to prepare people accordingly. She called on the private sector to lead the investment cycle in research and development, noting that private sector R&D spending currently accounts for only 36% of India's total, with overall R&D expenditure at approximately 0.83% of gross domestic product—well below the OECD average of 2.7%. A ₹1 trillion Research, Development and Innovation Scheme has been launched to support increased private sector participation in strengthening India's innovation capacity.
