Finance Minister Nirmala Sitharaman on Friday flagged that uncertainty has become a “standing condition” of the global economy and thus, advised the policy makers to build frameworks that will build resilience, with strategic resource security, private investment in research and development and diversified trade partnerships emerging as key priorities.
During her address at the Kautilya Economic Conclave 2026, Sitharaman said, "Uncertainty is now a standing condition of the global economy, and policy must be designed around it. We need to keep building resilience as we go along; it is not a one-time exercise. The coming years call for preparation, and India approaches them from strength. "
To remain resilient at such tumultuous time, Finance Minister highlighted that there is a need to develop a national security with special focus on the “structural autonomy” in strategic inputs, making resource security an important part of macroeconomic policy. Supply chains optimised purely for cost, she noted, can create hidden vulnerabilities.
While she emphasized that the government has focused on reducing dependence on single-source supplies through initiatives including the National Critical Mineral Mission, Rare Earth Corridors and India Semiconductor Mission 2.0, the private sectors also need to come forward in terms of contributing more fof research and development and also help in skill developments. Sitharaman also stressed the need for private investment to lead the next investment cycle, particularly in research and innovation.
"Private investment must now lead the cycle, including in research and innovation. India's expenditure on R&D stands at 0.83% of GDP, compared with 2.7% for the OECD, while the private sector contributes only 36% of India’s total R&D expenditure, " added the Minister.
The government’s ₹1 lakh crore Research, Development and Innovation Scheme is aimed at encouraging greater private sector participation and supporting the transition from “Made in India” to “Imagined and Made in India”, she said.
On trade, Sitharaman said countries should rely on dialogue and negotiated agreements rather than allowing geopolitical differences to create barriers to trade and investment.
