Union Finance Minister Nirmala Sitharaman addresses the 5th Kautilya Economic Conclave, under the theme ‘Resilience in an Age of Flux', in New Delhi on Saturday (Oct 3). Photo: PTI
FM Sitharaman calls for resilient economy, urges private sector to lead investments
At the Kautilya Economic Conclave, finance minister says India must build supply-chain resilience, boost R&D, and keep global trade open, predictable, and rules-based
New Delhi, Oct 3 (PTI) Finance Minister Nirmala Sitharaman on Saturday stressed the need for designing policies that build resilience amidst global uncertainty and called for building an open and predictable global economic relationship.
Listing out priorities for India amidst the global uncertainty, Sitharaman said it is now time for the private sector to lead investments, including in R&D.
"Uncertainty is now a standing condition of the global economy, and policy must be designed around it. We need to keep building resilience as we go along; it is not a one-time exercise. The coming years call for preparation, and India approaches them from strength," the minister said addressing the Kautilya Economic Conclave here.
Stating that national security requires structural autonomy in strategic inputs, Sitharaman said focus should be on optimising supply chains to replace fragile single-source dependencies with domestic operational depth.
Nations should engage with one another through dialogue and negotiated agreements, rather than allowing geopolitical differences to become barriers to trade and investment, she said, adding that global economic relationships must also remain open, predictable, and rules-based.
"International trade policy should provide greater certainty for businesses, respect national development priorities, and avoid unnecessary restrictions that fragment markets," she said.
Calling for the private sector to lead the cycle of investments, Sitharaman said: "Raising both the scale of investment and private sector participation is essential to strengthening our innovation capacity."
Sitharaman said India's expenditure on R&D stands at 0.83 per cent of GDP, compared with 2.7 per cent for the OECD, while the private sector contributes only 36 per cent of India's total R&D expenditure.
The minister said for India, resilience means building upon the structural foundations laid over the past decade to accelerate and broaden growth.
"The test of the coming years will again be partly invisible: the shocks India absorbs without disruption to households and enterprises," she said. PTI