New Delhi: Finance Minister Nirmala Sitharaman stated on Monday that India encounters similar difficulties as businesses, including tariffs, swings in commodity prices, interruptions in supply chains and weather-related threats that could influence the economy even with solid fundamentals.
Exporters and companies continue working amid limited clarity on outside events, Sitharaman noted during the Mindmine Summit 2026.
She observed that while operations may proceed normally, external shocks such as sudden tariffs remain beyond control and can affect export performance.
The remarks occur against a backdrop of worldwide trade and geopolitical tensions. Merchandise exports rose to $441.75 billion in FY26 from $437.70 billion the prior year, while imports climbed to $776.01 billion from $721.20 billion.
Sitharaman highlighted India’s reliance on imported critical inputs like crude oil, which leaves the country vulnerable to shifts in commodity prices as well as shipping and insurance expenses tied to global instability.
Although a large domestic consumption base provides some buffer, dependence on imported raw materials and intermediates creates ongoing pressure, she added.
Weather patterns also pose risks, with monsoon outcomes directly affecting agriculture and rural earnings. The government has prepared for possible shortfalls by maintaining foodgrain reserves, yet any rainfall deficit would still reduce farmer incomes.
She cited the fertilizer sector to illustrate how supply conditions can shift rapidly, requiring constant readiness for new issues.
Addressing questions on foreign investor positions in equities versus reserves, Sitharaman said authorities had reviewed the matter and introduced steps to channel overseas funds through bonds. Further measures may follow, and the RBI framework now permits public sector entities to raise overseas capital with exchange risks covered by the central bank.
She stressed the calibrated approach to attract needed foreign investment. Opportunities in artificial intelligence infrastructure, defence, energy transition and global capability centres were also noted as growth drivers.
