Union Finance Minister Nirmala Sitharaman on Saturday said India’s economic resilience has been built consciously over the past decade through fiscal prudence, infrastructure creation, banking reforms, last-mile delivery and sustained reforms, while stressing the need for greater strategic autonomy and preparedness to deal with emerging global challenges.
Addressing the 5th Kautilya Economic Conclave, Sitharaman said resilience meant the ability to absorb shocks without losing the growth path and retaining sufficient policy space to respond to future disruptions.
“The evidence of resilience lies largely in the counterfactual, in the outcomes that did not materialise: an inflation spiral that did not take hold, queues that did not form at fuel outlets, banking stress that did not surface and a fiscal correction that was never forced,” she said.
Referring to Kautilya’s Arthashastra, Sitharaman cited the principle “koshapurvah sarva-arambhah”, meaning all undertakings depend first on the treasury, and said sound public finances provide the State with the freedom to act when economic conditions deteriorate.
She said India had navigated the shocks of the past four years with its fundamentals intact, citing 7.8 per cent real GDP growth in Q1 FY27, CPI inflation of 4.82 per cent in August 2026, a current account deficit of 0.5 per cent of GDP in Q1 and foreign exchange reserves of about USD 766 billion.
Listing the foundations of resilience built since 2014, the Finance Minister highlighted the Jan Dhan-Aadhaar-Mobile trinity and Direct Benefit Transfer, along with initiatives such as PM Awas Yojana, Swachh Bharat, Ujjwala, Ayushman Bharat and food security measures.
She also pointed to more than 52 crore collateral-free loans sanctioned under PM MUDRA Yojana, banking-sector reforms and an 18.8 per cent growth in non-food credit in the year to August 2026.
On infrastructure development, Sitharaman said capital expenditure for FY27 had been budgeted at Rs 12.22 lakh crore.
