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Finance Minister Nirmala Sitharaman said the escalation of the West Asia conflict has moved beyond a regional issue to become a broader global risk, warning of its impact on energy markets and the global order.
“This current year is even more challenging as we move from a landscape of ‘shocks’ to one of ‘permanent volatility.’ The escalation of the Middle East conflict has evolved from a regional security concern into a systemic tremor, threatening the vital arteries of global energy and hardening the lines of a new, multipolar world order,” she said.
She added that the current global environment reflects a deeper shift. “It is what it is: a world of volatility, uncertainty, complexity, and ambiguity, all at once,” she said.
The minister highlighted that global public debt has surged to around $106 trillion, exceeding 95% of global GDP. As per the International Monetary Fund (IMF), the US debt-to-GDP ratio stands at 125% for 2025, while Japan’s is significantly higher at 235%, limiting policy flexibility for advanced economies.
Against this backdrop, Sitharaman said India continues to stand out. The country’s general government debt-to-GDP ratio is around 81% — among the lowest for major economies, and is projected to decline to 75.8% by 2030.
Also Read: FM sees fiscal space for capex push, RBI rate cuts amid global risks
India’s external debt remains relatively low at about 19%, while foreign exchange reserves provide import cover of roughly 11 months, offering a buffer against external shocks.
She said these factors position India better to navigate an increasingly volatile global environment.
“This current year is even more challenging as we move from a landscape of ‘shocks’ to one of ‘permanent volatility.’ The escalation of the Middle East conflict has evolved from a regional security concern into a systemic tremor, threatening the vital arteries of global energy and hardening the lines of a new, multipolar world order,” she said.
She added that the current global environment reflects a deeper shift. “It is what it is: a world of volatility, uncertainty, complexity, and ambiguity, all at once,” she said.
The minister highlighted that global public debt has surged to around $106 trillion, exceeding 95% of global GDP. As per the International Monetary Fund (IMF), the US debt-to-GDP ratio stands at 125% for 2025, while Japan’s is significantly higher at 235%, limiting policy flexibility for advanced economies.
Against this backdrop, Sitharaman said India continues to stand out. The country’s general government debt-to-GDP ratio is around 81% — among the lowest for major economies, and is projected to decline to 75.8% by 2030.
Also Read: FM sees fiscal space for capex push, RBI rate cuts amid global risks
India’s external debt remains relatively low at about 19%, while foreign exchange reserves provide import cover of roughly 11 months, offering a buffer against external shocks.
She said these factors position India better to navigate an increasingly volatile global environment.
