Growth driven by domestic factors: FM

Calls India a stabilising force in uncertain world

- FE BUREAU

FINANCE MINISTER NIRMALA Sitharaman on Friday said India’s economic growth was firmly anchored in its domestic factors, but cautioned that there’s no room for complacency.

Stating that the country’s rise as a “stabilising force” on the global stage is “neither accidental, nor transient”, the FM, in tacit reference to the US, said the “absolute dominance once enjoyed by a hegemon is now contested”.

Speaking at the Kautilya Economic Conclave, she said the foundations of global order were shifting, and “what the emerging countries are facing today are not a temporary disruption but a structural transformation”.

Trade imbalances hollowed out industries in some nations, while they created overcapacity in others, she noted. The FM said these imbalances made some countries “chronically dependent” on costly imports, while others were subsidising their industries with cheap, carbon-intensive power.