India’s strong domestic demand, calibrated policy interventions and rapidly expanding digital infrastructure will help the country navigate an increasingly volatile global environment, Union Finance Minister Nirmala Sitharaman said during the opening conversation at the Mindmine Summit 2026, themed “Uncertain Times, Confident Choices: India Recalibrates.”
Also read: Budget 2026 Inflection Point for AI, Infrastructure and Capability-Led Growth
In a wide-ranging discussion moderated by Sunil Kant Munjal, Chairman, Hero Enterprise, alongside Raamdeo Agarwal, Chairman, Motilal Oswal Securities, Sitharaman addressed concerns around global supply chains, foreign capital, exchange reserves, monsoon uncertainties, data infrastructure and India’s long-term growth story. The Finance Minister emphasised that while India’s challenges are becoming more complex as the economy expands, the country’s large domestic market and policy agility provide significant resilience.
Growing Economy Brings New Challenges
Speaking about the pressures on foreign exchange reserves amid rising imports, Sitharaman said that increasing demand itself reflects a healthy economy. “Growing demand is good because a growing economy requires critical inputs. Every expanding business has to make similar calculations about sourcing and financing, and India is no different. The comfort for India, however, is that we have a large domestic market with consumption continuously rising,” she said.
She added that the country’s dependence on imported intermediary goods and raw materials has become a key challenge amid global disruptions. “We still have substantial imports of intermediary and raw material products, and those imports are now under severe strain. That is one of the biggest challenges we are managing today.”
Monsoon Uncertainty Remains a Key Concern
Addressing agricultural risks due to El Niño Effect, Sitharaman acknowledged that the monsoon continues to be one of India’s annual variables but noted that this year presents additional concerns: ”Every year we prepare for monsoon-related uncertainties, but this year we are preparing for the possibility of a less-than-ideal season due to El Niño. We have sufficient buffer stocks created over the last year, so there should not be any food shortage, but farmers’ incomes could certainly come under stress.”
She pointed out that global volatility makes planning increasingly difficult: ”I’m not saying anything people don’t already know, but these are the realities we have to deal with. The question is how much provision one can realistically make for every uncertainty.”
Fertiliser Markets Illustrate Global Volatility
Using fertiliser imports as an example, the Finance Minister explained how rapidly changing geopolitical developments require constant recalibration. “During the Budget, we believed we had adequate fertiliser supplies and could comfortably manage demand. But between Budget day and today, there have been at least three major fluctuations,” she added.
She explained that some traditional suppliers chose to retain inventories instead of exporting, creating fears of shortages: ”Just when concerns about supply intensified, China re-entered the market after being absent for almost a year. One week’s challenge gets addressed the next week, but new challenges emerge immediately. Governance today is about being prepared for every such exigency.”
Domestic Participation Has Strengthened Indian Markets
The discussion also touched upon India’s capital markets, with Raamdeo Agarwal highlighting that India is among the few countries to have delivered sustained stock market compounding over long periods. Responding to concerns over rising foreign institutional investor (FII) holdings relative to India’s foreign exchange reserves, Sitharaman said the country’s own growth story has become its greatest strength. “I think you have answered the question yourself. Our own growth and our own participation in the market have considerably buoyed the stock market.”
She noted that government and RBI have already begun implementing measures to diversify capital inflows: ”Between the RBI and the government, we have analysed the situation and announced measures to make the bond markets an attractive destination for capital. We are simplifying compliance requirements and have provided favourable withholding tax treatment as the first step towards drawing more capital.”
RBI Framework to Support Overseas Capital Raising
The Finance Minister also highlighted new RBI initiatives designed to make overseas fundraising easier for Indian institutions: ”We recognise the need for more foreign capital. RBI has now allowed public sector agencies and banks to go out and raise resources under a structured framework.” She added that one of the most significant features is the handling of currency risks:
“Hedging for exchange rate volatility will be managed by RBI, meaning institutions will not have to bear those risks themselves. This calibrated approach is intended to ensure that markets receive the support they require while maintaining financial stability.”
Data Centres and GCCs Emerging as India’s Next Growth Engine
Beyond financial markets, Sitharaman highlighted the rapid expansion of data centres and Global Capability Centres (GCCs) as one of India’s most promising investment opportunities: ”I am actively discussing the importance of data centres and GCCs with states because these are immediate job-generating investments. As long as this growth happens in India, it strengthens our data security while simultaneously creating employment and adding vibrancy to the economy.”
She observed that the ecosystem is expanding well beyond traditional technology hubs: “Earlier, one would primarily think of Bengaluru, perhaps Hyderabad or Noida. Today, cities like Bhubaneswar, Coimbatore and several emerging centres are also becoming hosts for data centres.” According to Sitharaman, the pace of expansion has surprised many observers: ”It is spreading so quietly and yet so rapidly. People are not asking, ‘What is a data centre?’ Instead, India’s technicians and young workforce are embracing these opportunities with remarkable speed.” Calling it one of India’s most significant digital opportunities, she concluded, “The story of data centres and GCCs is really about how quickly we can capture this advantage and benefit from the opportunity before us. Looking at the speed with which states are responding, I believe the story is moving in a very positive direction.”
