India Poised to Tackle Global Disruptions with Agile Policies: FM Sitharaman

India will address the challenges arising from global uncertainties caused by tariff wars andp trade realignment through policy flexibility and a long-term strategy, Finance Minister Nirmala Sitharaman stated on Thursday.

Finance Minister Nirmala Sitharaman during the 150 years celebration of BSE in Mumbai, Thursday, April 17, 2025 | Photo: KAMLESH PEDNEKAR

Speaking at the 150th anniversary event of the BSE, Sitharaman recognized the risks associated with "tariff wars" but remained optimistic about India's resilient economy. She highlighted that the world is currently experiencing a phase of "trade recalibration" and acknowledged that India is not unaffected by global economic shifts.

“India is confident that we will navigate these global disruptions with policy agility and long-term vision. Our focus remains firmly on building robust domestic foundation — laid and strengthened through infrastructure development, inclusive growth, and deeper regional cooperation. These are not just buffers to external shocks but accelerators to our long-term growth aspirations,” said Sitharaman.

The finance minister cautioned that escalating tariff conflicts and increasing protectionism may disrupt global supply chains, drive up production costs, and generate uncertainties in cross-border investments.

“It is a VUCA — volatile, uncertain, complex, and ambiguous — world. One thing is firm — the strength of the Indian economic fundamentals and the macroeconomic prudence with which the economy is being managed. We offer investors, who are the nerve centres of the stock exchange, a combination of policy stability, growth, governance and innovation, macroeconomic prudent policies, and democratic institutions,” said the finance minister.

She highlighted that the government had foreseen these changes when preparing the 2025-26 (FY26) Budget, stressing that enhancing domestic efficiency and competitiveness is crucial for economic resilience. Sitharaman also commended India's strong regulatory framework, which has consistently drawn both foreign and domestic investments, even amidst global volatility.

Sebi Chief Emphasizes Market Integrity

During the same event, Tuhin Kanta Pandey, Chairperson of the Securities and Exchange Board of India (SEBI), highlighted India’s capital markets as global benchmarks for transparency and efficiency, pointing to innovations like the T+1 settlement cycle. He emphasized the importance for market institutions to focus on governance, disclosure, and public trust, rather than short-term commercial profits.

“Narrow business objectives must never override public interest,” Pandey stated.

Earlier today, at the CII Corporate Governance Summit, Pandey addressed concerns regarding the National Stock Exchange (NSE) IPO, reassuring that Sebi would ensure public welfare is not compromised by commercial interests. He mentioned that the regulator has set up an internal committee to review the IPO proposal.

Highlighting Sebi’s firm stance in cases like Gensol, Pandey emphasized the need to eliminate malpractices and advocated for stronger self-regulation among corporates.

(This Article was originally published by Business Standard)