Nirmala Sitharaman Says India Economy Remains Resilient
Finance Minister Nirmala Sitharaman has said India has navigated a period of global economic turbulence with its fundamentals intact and strengthened, highlighting banking reforms, infrastructure investment and inflation management as key pillars of resilience.
Sitharaman Says India Withstood Global Turbulence
Speaking at the Kautilya Economic Conclave 2026 in New Delhi, Sitharaman said uncertainty had become a persistent feature of the global economy, with rising public debt, geopolitical tensions and shrinking fiscal buffers creating new risks.
She noted that global public debt reached nearly 94% of GDP in 2025 and is projected to approach 100% by 2029.
Against this backdrop, she said India had maintained economic stability while strengthening its capacity to absorb external shocks.
Banking Reforms and Infrastructure Strengthen Economy
Sitharaman highlighted banking-sector reforms including recapitalisation, resolution of stressed assets and improvements in governance and risk management.
She also pointed to sustained infrastructure investment since 2014. National highways have expanded by around 60%, while Indian Railways commissioned 36,429 km of new track between 2014 and 2026.
Operational airports have more than doubled, while cargo-handling capacity at major ports has increased by nearly 60%.
Inflation Framework Supports Economic Resilience
The Finance Minister said the flexible inflation-targeting framework introduced in 2016 had helped anchor inflation expectations.
She highlighted continuous monitoring of prices, agricultural arrivals, stocks and crop conditions, along with interventions supported by the Price Stabilisation Fund.
Sitharaman also cited GST, the Insolvency and Bankruptcy Code, labour reforms and Jan Vishwas measures as structural changes aimed at making economic activity more predictable and productive.
