The future of global economic growth will be shaped by strategic partnerships instead of traditional multilateral trade, she said.
Sitharaman, who is on a visit to the US until October 26, was delivering a special lecture on India’s Economic Resilience and Prospects Amidst a Challenging and Uncertain Global Environment at Columbia University.
India is boosting its domestic capacities, turning self-reliant in critical areas and building resilience against external headwinds, she said.
The shift towards a more fragmented global economy amid redefined alliances and changing trade patterns could, in fact, work to India’s advantage, the minister said.
The country’s macroeconomic fundamentals remain strong even amid the trying times for the global economy, providing a strong foundation for its future growth, the minister stressed.As countries look inwards, there is heightened risk of regress towards de-industrialisation globally. So, a nuanced approach to diplomacy would be required where economic interests are balanced with strategic concerns, she said.While there are external challenges ahead, there are also abundant opportunities for India to lead the way, not just in economic terms, but in shaping the global discourse on technology, sustainability and inclusive growth, the minister said.
Sitharaman underscored the country’s emergence as the world’s fifth-largest economy under the Modi regime from 10th largest in 2013. Citing the International Monetary Fund forecast, she said it would become the world’s third-largest economy by 2027.
India’s contribution to global growth is forecast to rise 200 basis points over the next five years, bolstering its role in the fast-evolving global economic order, she indicated.
The country’s growth trajectory is supported by a broad range of government initiatives, she said, highlighting astute pandemic management, enhanced manufacturing capabilities, digital and financial reforms, regulatory simplifications and a focus on ease of doing business. India’s trade policies, too, have also undergone reforms, with a focus on facilitation and greater integration with major economic partners.
The country is fostering a more competitive and export-oriented economy by pursuing free trade agreements with nations like the UAE and Australia, on top of initiatives such as the production-linked incentive schemes and One District One Product schemes, she said.
