New Delhi: Finance Minister Nirmala Sitharaman on Friday said the world is facing “profound imbalances” in trade and energy security, and is undergoing a structural transformation, with India standing out as a ‘stabilising force’ that can withstand external shocks.
Sitharaman said geopolitical conflicts are intensifying, and sanctions and tariffs are reshaping global supply chains. India must continue to remain vigilant, and there is no room for complacency, she said, speaking at Kautilya Economic Conclave 2025 here.
“Wars and strategic rivalries are redrawing the boundaries of cooperation and conflict. Alliances that once appeared solid are being tested, and new coalitions are emerging. For India, these dynamics highlight both vulnerability and resilience. Our capacity to absorb shocks is strong, while our economic leverage is evolving,” she said.
“The international order is morphing. Trade flows are being reshaped, alliances are being tested, investments are being rerouted along geopolitical lines, and shared commitments are being re-examined,” she said in her inaugural address.
The minister underlined that describing the present as merely “turbulent” would be an understatement. “Omnipresent uncertainty has become the new norm,” she noted, adding that what the world is witnessing is not just a disruption but a “structural transformation.”
Reflecting on global power shifts, she said, “The global dominance of one power has given way to contestation, with Asian nations asserting alternative models of growth and governance. What we face is not a temporary disruption but a structural transformation. The question is: What lies on the other side of this transformation? What will the new equilibrium look like? Who will shape it, and on what terms?”
Sitharaman highlighted India’s role as a reliable pillar in this changing landscape, pointing to fiscal consolidation, structural reforms and inflation control. “Our growth is firmly anchored in domestic factors, which minimises the impact of external shocks,” she stressed, while also cautioning against complacency.
The finance minister drew attention to the difficult choices before developing economies. “These trade-offs are not easily resolved, yet they cannot be ignored,” she said, citing challenges such as balancing energy security with energy transition, growth with sustainability, and innovation with job creation.
She argued that “trade, financial and energy asymmetries” have created distortions in the global order. “We must ask ourselves: how can we build a global order where trade is fair, finance serves productive ends, energy is both affordable and sustainable, and climate action aligns with development imperatives?” she said.
Sitharaman also pointed to new disruptions — from digital currencies to geopolitical conflicts — that are forcing nations to adapt quickly. “Our capacity to absorb shocks is strong, while our economic leverage is evolving. Our choices will determine whether resilience becomes a foundation for leadership or merely a buffer against uncertainty,” she remarked.
