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Finance Minister Nirmala Sitharaman warned that escalating tariff wars and protectionist policies could severely disrupt global supply chains, raise production costs, and create uncertainty in cross-border investments. Speaking at the 150-year celebration of the Bombay Stock Exchange (BSE) in Mumbai, she highlighted the challenges posed by a volatile, uncertain, complex, and ambiguous (VUCA) global environment.
Despite these concerns, Sitharaman emphasized India’s robust economic fundamentals and macroeconomic prudence as pillars of stability. “India offers investors a unique blend of policy stability, growth, governance, innovation, and youthful dynamism,” she said, underscoring the strength of the nation’s democratic institutions and prudent policies.
The recent imposition of tariffs by US President Donald Trump rattled global markets, including India, sparking fears of a potential global economic slowdown. However, a 90-day pause on reciprocal tariffs has eased some uncertainties. Sitharaman noted that India’s financial markets have demonstrated resilience amid these global shocks.
Highlighting the surge in retail investor participation, the Finance Minister called it a reflection of India’s strong economic foundation. “Retail investors are increasingly entering the stock market, moving beyond traditional bank fixed deposits. This is driven by greater transparency in corporate governance, enabling them to make informed investment choices,” she said.
Sitharaman’s address reaffirmed India’s position as a stable and dynamic investment destination, even as global trade tensions loom large.
