Globalization is a relic, India anchored in domestic strength!

Finance Minister Nirmala Sitharaman stated on Friday that the era of globalization and open markets that shaped the post-Cold War period is now “a relic of the past.” She warned that countries must adapt to a fundamental shift in the global order amidst rising uncertainties.

At the fourth Kautilya Economic Conclave, Sitharaman portrayed India as a “stabilizing force” in this volatile environment, driven by strong domestic factors such as consumption, investment, reforms, and inflation control, which help protect the economy from external shocks.

However, she emphasized that maintaining this stability requires continuous effort. “Just as eternal vigilance is the price of liberty, eternal performance is the price of strategic independence,” she remarked.

Sitharaman noted a weakening of the post-war rules-based trading system, as increased unilateral tariffs and protectionism lead to a more fragmented global economy. Trade patterns, capital flows, and alliances are shifting along geopolitical lines, with deglobalization and risk reduction worsening imbalances in trade, finance, and energy. This, she said, represents a structural transformation rather than a temporary disruption, raising questions about what will emerge from it and under what conditions.