New Delhi: Finance minister Nirmala Sitharaman on Monday said India faces the same challenges confronting businesses, with tariffs, commodity price volatility, supply-chain disruptions and weather-related risks capable of affecting the economy despite strong fundamentals.
Businesses and exporters continue to operate with limited visibility on external developments, Sitharaman said while speaking at the Mindmine Summit 2026.
“I know my business is doing all right, but yet I don’t know when a challenge externally will come. I am doing good exports, but I don’t know when a tariff can land on me, and I have no control over it,” she said.
The comments come amid ongoing global trade and geopolitical uncertainties. Despite these headwinds, merchandise exports increased to $441.75 billion in FY26 from $437.70 billion in FY25, while imports rose to $776.01 billion from $721.20 billion a year earlier.
The minister said that India’s dependence on imports of critical inputs such as crude oil exposes it to fluctuations not only in commodity prices but also in shipping and insurance costs arising from global uncertainties.
“India’s comfort is that you have a large domestic market with consumption going up, but you still have a lot more intermediary and raw material products which you have to import, and that import is now under severe strain,” she said.
Sitharaman also pointed to weather-related risks, saying monsoon performance remains a major concern because of its impact on agriculture and rural incomes.
She said that the government was preparing for the possibility of a weaker-than-expected monsoon and had maintained adequate foodgrain buffer stocks to avoid shortages. However, she cautioned that any adverse impact on rainfall would affect .
The minister cited as an example of how quickly global supply conditions can change.
“One week you have a challenge, the next week that challenge is addressed, but newer challenges come up. So it’s being ready for every such exigency,” the FM said.
Responding to concerns raised by Motilal Oswal Financial Services chairman Raamdeo Agrawal over the rising size of foreign investor holdings in Indian equities relative to the country’s foreign exchange reserves, Sitharaman said the government and the Reserve Bank of India had analysed the issue and recently announced measures aimed at attracting foreign capital through the bond market.
She said that the government views the bond market as a potential avenue for drawing overseas capital into India and indicated that further steps could be considered beyond the current measures.
Sitharaman also highlighted the RBI’s decision to allow public sector undertakings and banks to raise funds overseas under a defined framework. She noted that exchange-rate hedging risks under the framework would be borne by the RBI, making it easier for institutions to access foreign capital.
“We recognise that we need more foreign capital to come in, and we have taken a very calibrated approach to make sure that the markets do receive the required investments,” she said.
On emerging growth opportunities, Sitharaman said that investments linked to artificial intelligence infrastructure, defence preparedness, energy transition and the expansion of global capability centres () were creating significant opportunities for India.
She said that the Centre and states were actively working on policies to attract investments in data centres and GCCs, sectors that are expected to generate employment and support economic activity over the coming decade.