Finance Minister Nirmala Sitharaman on Tuesday said India has emerged as a “centre of stability” amid heightened geopolitical tensions and global economic uncertainty, while maintaining a growth rate of 7.8%.
Addressing the convocation ceremony of Dr. M.G.R. Educational & Research Institute in Chennai, Sitharaman highlighted the challenges posed by ongoing conflicts, particularly as India imports crude oil and agricultural fertilisers from regions affected by the tensions.
“You may have read in history books about the global uncertainty that prevailed during the First and Second World Wars. Currently, three major conflicts and tensions are underway: Russia-Ukraine, Israel-Iran and tensions involving Iran, the US and the Gulf countries,” she said.
Sitharaman said the geopolitical uncertainty has not derailed India’s growth, with the economy expanding at 7.8% in Q1FY27. She noted that the country’s growth performance had attracted considerable attention during her recent visit to North America.
“When I visited North America two weeks ago, this was the very topic that other nations inquired about. They expressed astonishment at how India – a highly populous nation – achieved a 7.8% growth rate at a time when the rest of the world is struggling,” she said.
Sitharaman urged graduating students to recognise the significance of India’s economic performance against the backdrop of challenges faced by economies globally.
“Graduating students should bear this in mind. While various nations face diverse challenges, we have ensured that the impact does not adversely affect our people, all while simultaneously driving growth, and the 7.8% growth rate is the result of these efforts,” she said.