Trade recalibrations worrisome; India will focus on policy agility, long-term vision: FM

Mumbai, Apr 17: Union Finance Minister Nirmala Sitharaman on Thursday said India will focus on policy agility and long-term vision to navigate the global challenges amid ongoing trade recalibrations worldwide.

The intensification of tariff wars and the rise of protectionist policies have the potential to disrupt global supply chains, increase production costs and create uncertainty in investment decisions across borders, she said while speaking at an event to mark stock bourse BSE's 150th anniversary.

"India is confident...we will navigate these global disruptions with policy agility and long-term vision.

"The recalibration efforts on trade are very challenging...it is worrisome, but also very challenging," she said.

The world is volatile, uncertain, complex and ambiguous, she said, pointing out that India stands firm in this environment with its strong macroeconomic fundamentals.

The country offers investors policy stability, growth, prudent macroeconomic policies and democratic institutions, she noted.

"The most effective path" for building economic resilience is to foster domestic efficiencies and competitiveness, Sitharaman said.

The government's focus remains firmly on building a robust domestic foundation through infrastructure development, inclusive growth and deeper regional cooperation, she added.

Acknowledging that the financial markets have been impacted as a result of the trade recalibration, she said India's financial markets have shown remarkable resilience despite recent global uncertainties.

Stock markets globally have faced turmoil ever since US President Donald Trump announced sweeping tariffs on most nations, including India, earlier this month. The markets recovered some ground after the US government announced a 90-day pause on the implementation of the reciprocal tariff.

Domestic institutional investors transition from lending a supportive hand to being a dominant force underlines the growing maturity and depth of India's capital market, she said.

The finance minister said she appreciates how the retail investors have placed their faith in the markets today, and the role played by women and youth in particular, but warned that any small omission or commission will shatter this newfound faith in the markets.

India stands at a defining point in her economic journey, where the country is set to become the third biggest economy from the current fifth place by the end of the decade, she said.

The BSE's 30-share benchmark Sensex is the sensitive pulse of the Indian economy and the bourse mirrors the growth potential of the Indian economy, Sitharaman noted.