Union finance minister Nirmala Sitharaman emphasized the importance of resource security as global economic uncertainty persists, citing geopolitical tensions and supply chain disruptions as key challenges. Speaking at the Kautilya Economic Conclave, she outlined India’s approach to building resilience through domestic production and strategic autonomy. The minister highlighted initiatives such as the National Critical Mineral Mission, Rare Earth Corridors, India Semiconductor Mission 2.0, and small modular reactors as part of a broader strategy to reduce reliance on single-source dependencies.

Sitharaman noted that while price shocks can be managed through monetary and fiscal tools, quantity shocks—such as disruptions in the physical movement of goods—pose a greater challenge to state capacity. She pointed to India’s ability to withstand global shocks, including the impact of the Russia-Ukraine war, the Israel-Hamas conflict, and trade disruptions from the weaponization of tariffs. India’s real GDP grew 7.8% in the first quarter of 2026-27, and retail inflation remained at 4.82% in August, well below the Reserve Bank of India’s target.

The minister also addressed the issue of oil dependence, noting that India imports over 88% of its crude oil and has faced extreme volatility in prices due to geopolitical developments. Benchmark Brent crude prices fluctuated between $70 and $100 in recent months, reflecting the impact of global tensions on energy markets. Despite these challenges, India’s current account deficit remained at 0.5% of GDP in the first quarter, and foreign exchange reserves stood at about $766 billion.

Sitharaman argued that resilience is not just about economic performance but also about maintaining stability in households and enterprises. She cited counterfactual outcomes—such as an inflation spiral that did not materialize, queues at fuel outlets that did not form, and banking stress that did not surface—as evidence of India’s economic strength. The minister also stressed the need for open, predictable, and rule-based global economic relationships, urging nations to engage through dialogue and negotiated agreements rather than allowing geopolitical differences to impede trade and investment.

India’s economic resilience has been built over the past decade through structural reforms and strategic investments, according to Sitharaman. She noted that the country remains the fastest-growing major economy in the world, with sustained growth and fiscal prudence. The minister also highlighted the importance of private investment in research, innovation, and skilling to prepare for a changing global labor market. India’s approach to economic policy, she said, is rooted in the principles of ancient economic thought, drawing parallels to Kautilya’s treatises on statecraft and economic management.

What remains unclear is how effectively India will manage the long-term implications of its reliance on imported energy and critical minerals. While the government has launched initiatives to boost domestic production, the pace of implementation and the scale of output will determine the success of these efforts. Additionally, the impact of rising global public debt—projected to reach 100% of GDP by 2029—on India’s economic trajectory is yet to be fully assessed. As the minister acknowledged, the coming years will test India’s ability to absorb shocks without disrupting growth or stability.