FM Sitharaman: India’s Emergence as a Stabilising Force Intentional, Global Hegemon’s Absolute Dominance Challenged

Finance Minister Nirmala Sitharaman, addressing the Kautilya Economic Conclave organized by the Ministry of Finance and the Institute of Economic Growth, articulated India’s rise on the global stage as a “stabilising force” that is “neither accidental nor transient.” She stressed that India’s emergence as a reliable and influential player in global affairs has been deliberate, reflecting long-term strategic planning and consistent policy decisions. Highlighting shifts in global power dynamics, Sitharaman observed that the absolute dominance historically enjoyed by a hegemon—an implicit reference to the United States—is increasingly being contested. This indicates a more multipolar world, where no single power can assert uncontested influence, leading to a redistribution of geopolitical and economic leverage.

Sitharaman elaborated on the evolving global environment, emphasizing that sanctions, tariffs, and decoupling strategies are actively testing previously stable alliances. Nations that once appeared to have solid partnerships are reassessing their strategic alignments in response to economic and political pressures. At the same time, new coalitions and collaborative arrangements are emerging, reflecting the shifting landscape of international relations. These dynamics, she said, expose both vulnerabilities and resilience for India, highlighting the dual aspects of opportunity and risk inherent in a rapidly transforming global order. The Finance Minister stressed that the choices India makes today, in navigating these challenges, will determine whether its resilience forms the foundation for global leadership or serves merely as a buffer against uncertainties.

On the domestic front, Sitharaman pointed out that India’s growth trajectory is “firmly anchored” in internal factors. Sustainable development and economic expansion, she asserted, depend on leveraging domestic strengths rather than over-relying on external conditions. For India to achieve its long-term vision of becoming a developed nation by 2047, maintaining a consistent GDP growth rate of around 8 percent is crucial. This ambitious target will require structural reforms, enhanced productivity, and effective policy implementation across sectors.

During the same conclave, N.K. Singh, Chairman of the 15th Finance Commission and President of the Institute of Economic Growth’s Board of Trustees, emphasized the practical steps required to achieve these growth targets. Singh highlighted the importance of raising India’s growth rate to 8 percent and improving the incremental capital output ratio (ICOR), which measures the efficiency of capital investments in generating output. He also stressed that the Centre and state governments should replicate the effective collaboration demonstrated during the implementation of the Goods and Services Tax (GST) regime across other areas of governance and economic management. This partnership model, Singh noted, is essential for translating policy initiatives into measurable outcomes and ensuring coordinated development efforts across all levels of government.

Sitharaman’s address thus underscored the interplay between India’s domestic policy framework and global strategic positioning. While the country navigates international uncertainties and power realignments, it must simultaneously maintain robust domestic growth engines. The dual focus on international resilience and internal economic strength positions India to assert itself as a stabilizing global force, capable of shaping outcomes in an increasingly contested and complex geopolitical environment. The conclave emphasized that India’s rise is not a matter of chance but the result of calculated strategic choices, requiring continuous adaptation, effective governance, and a steadfast commitment to growth and stability.