Finance Minister Nirmala Sitharaman said on Saturday that India has navigated a period of global economic uncertainty with its economic fundamentals intact and strengthened. Addressing the special plenary on “Resilience in an Age of Flux: India’s Economic Priorities” at the 5th Kautilya Economic Conclave 2026, she said the West Asia crisis and other global disruptions had created significant challenges for economies worldwide.

Sitharaman pointed to rising global public debt as one of the major vulnerabilities facing the world economy. She said global public debt had reached nearly 94 per cent of GDP in 2025 and was projected to touch 100 per cent by 2029, a level last seen in the aftermath of the Second World War. She noted that while price shocks could be addressed through monetary and fiscal measures, quantity shocks tested the capacity of economic and public delivery systems.

The Finance Minister cited several indicators to underline India’s current economic position. Real GDP grew 7.8 per cent in the first quarter of FY 2026-27, while consumer price inflation stood at about 4.8 per cent in August 2026. She also said the current account deficit was 0.5 per cent of GDP in the first quarter. According to Sitharaman, policy measures since 2014 have focused on strengthening household resilience, productive capacity and citizens’ and businesses’ participation in economic activity.

Also Read: Swiss President Guy Parmelin To Visit India From October 5-7, Hold Talks With PM Modi

She highlighted the role of financial inclusion and welfare delivery in strengthening household resilience. The Jan Dhan-Aadhaar-Mobile framework and Direct Benefit Transfer system have been used to facilitate the delivery of government assistance, while schemes covering housing, sanitation, cooking fuel, healthcare and food security have addressed different areas of household vulnerability. Sitharaman also referred to PM MUDRA, which she said had sanctioned more than 52 crore collateral-free loans to support self-employment and small businesses.

Sitharaman also outlined infrastructure investment and financial-sector reforms as key components of India’s economic strategy. She said the Centre had budgeted Rs 12.22 lakh crore for capital expenditure in FY 2026-27, while effective capital expenditure stood at Rs 17.15 lakh crore, equivalent to 4.4 per cent of GDP. She said national highways had expanded by about 61 per cent since 2014, operational railway routes had more than doubled and major-port cargo-handling capacity had increased by nearly 60 per cent.

The Finance Minister further pointed to reforms including the Goods and Services Tax, Insolvency and Bankruptcy Code, Labour Codes and Jan Vishwas measures as part of the government’s reform framework. She also highlighted banking-sector measures such as recapitalisation, resolution of stressed assets and stronger governance and risk-management systems. Sitharaman said these measures, along with continued infrastructure investment, were intended to strengthen India’s capacity to withstand external disruptions while supporting sustained economic activity.

Also Read: PM Modi Says India Shifted From Government As Sole Provider To ‘Nagrik Devo Bhava’ Model