India’s growth firmly anchored on domestic factors, says FM

In an era of unprecedented global uncertainty, India’s rise as a “stabilising force” is neither accidental nor transient, Union finance minister Nirmala Sitharaman said on Friday, underscoring the resilience of the country’s economy fuelled by strong domestic demand and backed by the government's consistent focus on capital expenditure, fiscal consolidation and keeping inflation under check.

- Rajeev Jayaswal

“We have implemented strategic reforms that enhance the case of doing business, promote financial inclusion, and improve the quality of life for the average citizen in the country. With the steady share of consumption and investment in the overall GDP over the years, India’s growth is firmly anchored in its domestic factors, which minimises the impact of external shocks on overall growth. As a result, the Indian economy is resilient and continues to grow sustainably,” she said at the Kautilya Economic Conclave (KEC) 2025.

FMsaid the theme of the conclave — Seeking Prosperity in Turbulent Times — is apt. “In this era of unprecedented global uncertainty and volatility, this conclave provides an invaluable opportunity to bring together distinguished economists and policymakers. KEC is an annual flagship initiative of the Institute of Economic Growth (IEG) and the ministry of finance to foster dialogue across and between countries to promote better understanding on contemporary national and global challenges.