Tariffs reshaping global economy while India stays on the hunt for 8% GDP growth, FM Sitharaman says

Tariffs are reshaping the global economy amid intensifying geopolitical tensions, even as India continues to aspire for 8% GDP growth, Union Finance Minister Nirmala Sitharaman said on Friday.

“We have to reach 8% GDP growth to get to the goal for Viksit Bharat. By 2047 becoming Viksit Bharat by self reliance does not mean we want to be a closed economy. We are in an era of unprecedented global volatility. India, however, has a strong capacity to absorb external shocks” she added.

The Finance Minister was delivering her inaugural address at the Kautilya Economic Conclave 2025.


During her address, Sitharaman said that the disruptions currently affecting global trade and investment are not merely short-term shocks but represent deeper structural changes.

"Geopolitical conflicts are intensifying. Sanctions, tariffs and decoupling strategies are reshaping global supply chains. For India, these dynamics highlight both vulnerability and resilience. Our choices will determine whether resilience becomes a foundation for leadership or merely a buffer against uncertainty," Sitharaman said.


“What we face is not a temporary disruption but structural transformation. The ask before us is not only to manage global uncertainties, but also to confront trade & energy imbalances,” she said.

The Finance Minister also stressed the importance of strengthening multilateral institutions, noting that their deterioration is eroding global confidence.

“Reform of multilateral institutions is important as their deterioration is chipping away global confidence,” she said, adding that renewed cooperation and trust are essential for stabilising international trade and investment flows.

Sitharaman described the broader global economic scenario as a historic inflection point.

“For most of us, the arc of history never bends. But it is bending now, and the global economy reflects this. Low investments, ever-present tension between growth, sustainability represent this,” she said.

Further, she reiterated India’s commitment to sustained high growth. The government aims to achieve an 8% GDP growth rate, a level she described as critical to realizing the vision of a self-reliant and developed nation by 2047.

By balancing domestic reform with engagement in the global economy, India hopes to navigate rising tariff barriers, shifting trade alliances, and heightened geopolitical tensions without losing momentum.