Finance Minister Nirmala Sitharaman underscored the critical need for India to continuously strengthen its economic resilience, citing global uncertainty as a persistent condition. Speaking at the Kautilya Economic Conclave 2026, Sitharaman stated that building resilience is not a one-time task but an ongoing exercise, essential for navigating increasing geopolitical vulnerabilities.
Strengthening India's Economic Foundations
Sitharaman highlighted that for India, resilience involves leveraging the structural foundations established over the past decade to accelerate and broaden economic growth. She noted that a key measure of sound economic management will be India's ability to absorb future shocks without disrupting households and enterprises, much like growth figures.
Private Sector's Role in Innovation and Investment
The Finance Minister called upon the private sector to spearhead the investment cycle, particularly in research and innovation. She pointed out a significant gap in R&D expenditure: India's stands at 0.83% of GDP, compared to 2.7% for OECD nations. Furthermore, the private sector contributes only 36% to India's total R&D spending. Sitharaman stressed that increasing both the scale of investment and private sector participation is vital for enhancing the nation's innovation capacity.
Global Openness and Strategic Priorities
Sitharaman reiterated the importance of global openness, advocating for economic relationships that remain open, predictable, and rules-based. She suggested that a more resilient global economy would require countries to diversify partnerships, keep markets open, honor commitments, and collaborate to ensure stable and predictable movement of goods, services, energy, and capital.
Among other priorities, she emphasized strategic resource security as central to macroeconomic policy and highlighted the necessity of skill development to prepare the workforce for an evolving global landscape. Sitharaman also acknowledged the government's consistent measures since 2014 to build economic stability, noting that fiscal prudence has ensured continuity in development commitments.