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Global uncertainty to continue; need to design policies to build resilience: Finance Minister
Oct-05-2026

Finance Minister Nirmala Sitharaman has indicated that global uncertainty is expected to continue in coming period, therefore there is a need to design policies which build resilience. Highlighting priorities for India for dealing with the next decade of global economic shock, Sitharaman said it is now time to have ‘autonomy’ in building resilient supply chains, and for the private sector to lead investments, including in R&D. She also emphasized that the industry must play a greater role in designing and delivering training, for skill development amidst a ‘changing world of work’. She said that India’s expenditure on R&D stands at 0.83% of GDP, compared with 2.7% for the OECD, while the private sector contributes only 36% of India’s total R&D expenditure. 

She has called for the private sector to lead the cycle of investments, saying raising both the scale of investment and private sector participation is essential to strengthening the country’s innovation capacity. Besides, she noted that for India, resilience means building upon the structural foundations laid over the past decade to accelerate and broaden growth. On resilience, she said that the evidence of resilience lies in the counterfactual, in the outcomes that did not materialise, such as an inflation spiral that did not take hold, queues that did not form at the fuel outlets, banking stress that did not surface and a fiscal correction that was never forced.

Amid persistent global uncertainty, Sitharaman has called upon nations to have an open, predictable and rule-based global economic relationships. She suggested that nations should engage with one another through dialogue and negotiated agreements, rather than allowing geopolitical differences to become barriers to trade and investment. She added that international trade policy should provide greater certainty for businesses, respect national development priorities, and avoid unnecessary restrictions that fragment markets.
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