Finance Minister Nirmala Sitharaman on Tuesday highlighted India’s resilience and strong domestic demand as key drivers that will sustain its role as a global growth engine, even as shifting international trade dynamics—particularly US tariffs—reshape the global economic landscape.
Speaking at an event titled “Opportunities and Challenges for India’s Quest to Become a Developed Economy by 2047” at the Indian High Commission in London, Sitharaman said India is well-positioned to leverage its domestic strengths to weather global challenges.
“The world has experienced prolonged periods of sluggish growth—first with persistently low interest rates, and now with low growth projected to continue. That’s not encouraging for anyone,” Sitharaman remarked during her first UK visit in her current term as Union Finance Minister.
She emphasized that despite these global headwinds, India has maintained its status as the fastest-growing major economy for five consecutive years. “While the momentum may see some moderation, India will still lead in growth, supported by robust domestic consumption and a demand for goods meeting global standards,” she said.
Referencing India’s trade ties, Sitharaman pointed out the pivotal role of the United States as India’s top trading partner. She acknowledged that new US tariff policies may influence global trade flows but stressed that India’s strong internal demand remains a powerful magnet for global supply chains.
“This domestic demand makes India an attractive destination for foreign direct investment and international manufacturing—not just to serve local markets, but also to facilitate exports,” she explained.
Looking ahead, Sitharaman said that India, along with a handful of emerging markets, will continue to be among the few engines capable of driving global growth forward.
“If the world economy is to recover from its current stagnation, it will rely on the performance of emerging economies like India,” she concluded.