India resilient amid global uncertainties on strong domestic demand, macro fundamentals: FM Sitharaman

Finance minister Nirmala Sitharaman today said India’s resilience continues and the country is standing out amidst the global uncertainties on the back of several favourable factors, such as strong domestic demand and macroeconomic fundamentals. Addressing Bank of Maharashtra’s 91st Foundation Day in Pune today, Sitharaman said India's economic resilience has continued, particularly in the April to June quarter this year, as well, where our GDP has grown by 7.8%.

“Amidst this uncertain global environment, India’s resilience stands out. Several favourable factors, such as strong macroeconomic fundamentals, a young demography and greater reliance on domestic demand, provide core strength to the Indian economy to withstand global spillovers and grow at a higher aspirational trajectory,” Sitharaman said.  

“Post-COVID, India rebounded strongly, recording an average annual growth of about 8% during 2021-22 to 2024-25. It stood out as the fastest-growing major economy in the world. This economic resilience has continued, with India’s GDP growing by 7.8% in the April-June quarter,” she added.

Sitharaman pointed out that the country’s resilience is not accidental. “It reflects proactive fiscal and monetary policies, bold structural reforms, massive infrastructure creation, both physical and digital, improved governance and enhanced competitiveness over the last decade,” FM said.

In fact, it is based on these reforms and developments that the country has received three rating upgrades recently.  

“S&P’s upgraded India's sovereign credit rating to ‘BBB’ (from BBB-) in August 2025 after 18 years, and Morningstar DBRS upgraded us to ‘BBB’ from BBB (low) in May 2025. Recently, Japanese credit rating agency, Rating and Investment Information, Inc. (R&I), upgraded India’s long-term sovereign credit rating to ‘BBB+’ from ‘BBB’,” the FM said.

“The success of UPI shows what interoperability can achieve. A recent IMF note highlights the potential of UPI’s interoperable design as a model for the world. It is, however, important to remember that digitalisation alone is not enough. Integrity, empathy and human judgment remain irreplaceable,” she added.  

FM said with uncertainty remaining a defining feature of the global landscape, the role of banks becomes even more critical, not just as custodians of savings, but as engines of growth, providing the finance and support that businesses and entrepreneurs need to navigate volatility, seize opportunities and drive innovation.

“One principle which we can never forget to adhere to is adhering to the core principle of customer trust, which is the foundation of banking. Every complaint must be seen as an opportunity to improve, innovate and reinforce trust. Grievance redressal must go hand-in-hand with root cause analysis, systemic corrections in products, processes and conduct, and a commitment to ensure the same complaint does not arise again,” Sitharaman added.