India’s Rise as a Stabilising Force: FM Sitharaman on Global Shifts

India’s Rise as a Stabilising Force Not Accidental; Absolute Dominance of a Hegemon Now Contested: FM Sitharaman

Introduction

India’s Finance Minister Nirmala Sitharaman recently made a striking observation: “India’s rise as a stabilising force in the global order is not accidental; absolute dominance of a hegemon is now contested.”

Her statement reflects a shifting balance of power in global politics and economics, where India has emerged as a reliable partner, a stabilising force in turbulent times, and a voice for the Global South.

From being once seen as a developing nation struggling with its own challenges, India is now increasingly shaping debates on geopolitics, economy, climate, technology, and security. The idea that no single hegemon (a dominant superpower) can unilaterally dictate global affairs anymore is a powerful recognition of this transformation.

In this blog, we will explore:

• What Sitharaman meant by her statement.

• How India rose as a stabilising force.

• Why hegemonic dominance is weakening.

• India’s role in regional and global affairs.

• Implications for the future of world order.

The Context of Sitharaman’s Statement

Sitharaman’s words come at a time when:

• The global economy is under stress from wars, trade tensions, and supply-chain disruptions.

• The Russia-Ukraine conflict and Middle East instability have highlighted the limits of Western power.

• The US and China are locked in a contest for influence.

• The Global South is asserting its voice in world forums like G20, BRICS, and SCO.

Against this backdrop, India has stood out for its measured diplomacy, economic resilience, and strong growth trajectory.

Her remarks also reflect a deeper truth: the era of unipolar dominance, where one superpower (like the US after the Cold War) could dictate terms, is fading. Instead, we are moving toward a multipolar world, with India as one of the key poles.

India’s Rise: Not Accidental, But Strategic

India’s growing influence is not a coincidence. It is the result of decades of strategic choices, economic reforms, and geopolitical positioning.

1. Economic Transformation

• From a struggling economy in the 1990s to the world’s 5th largest economy in 2024.
• Powered by reforms, IT boom, services sector, and manufacturing growth.
• Forecasts suggest India could be the 3rd largest economy by 2030.

2. Demographic Dividend

• With over 1.4 billion people, India has the world’s largest youth population.

• A dynamic workforce fuels both domestic consumption and global supply chains.

3. Strong Democracy & Institutions

• Despite challenges, India remains the world’s largest democracy.

• Stable governance and democratic values enhance credibility.

4. Strategic Diplomacy

• Balancing relations with the US, Russia, China, and the EU.

• Championing the cause of the Global South at G20 and BRICS.

• Advocating for reforms in institutions like the UN Security Council and IMF.

5. Defense & Security Role

• Strengthened military capabilities and maritime presence in the Indian Ocean.

• A key player in Quad (India, US, Japan, Australia).

• Leading peacekeeping missions under the UN.

Clearly, India’s global standing is the outcome of deliberate choices and resilience, not mere chance.

Absolute Dominance of a Hegemon Now Contested

For decades, the world order revolved around one hegemon — a single superpower that dictated terms.

• After World War II, it was the United States, with unmatched economic, military, and cultural power.

• The Cold War created a bipolar world (US vs USSR).

• Post-Cold War, the unipolar moment saw the US dominate global affairs.

But in the 21st century, this dominance has been contested.

Reasons Why Hegemon Dominance Is Weakening:

Rise of China as a major economic and military power.

Resurgence of Russia, challenging Western dominance in Eastern Europe and West Asia.

India’s emergence as a balancing power in Asia.

Regional Powers like Brazil, South Africa, Turkey, and Indonesia gaining influence.

Globalization & Technology: Power is no longer limited to military might; digital and economic influence matter equally.

Multipolarity in Practice: Institutions like BRICS, SCO, and G20 reflect multipolarity over unilateral dominance.

In this world, India’s rise challenges the notion that any single hegemon can dictate global order.

India as a Stabilising Force in Global Politics

India’s foreign policy has consistently aimed at balancing global tensions. Let’s see how:

1. Neutral Stance in Conflicts

• On the Russia-Ukraine war, India maintained neutrality while pushing for dialogue.

• On Middle East crises, India called for peace and humanitarian aid.

2. Champion of Global South

• India has become the voice of developing nations, highlighting issues like climate finance, debt relief, and equitable trade.

• The G20 Presidency in 2023 was a turning point, where India pushed the Global South’s agenda.

3. Promoter of Multilateralism

• Advocating for a more representative UN Security Council.

• Supporting climate agreements while protecting developing nations’ rights.

4. Connector Between East and West

• Strong ties with the US and EU, while also maintaining close relations with Russia and Asian neighbors.

• This makes India a bridge between conflicting powers.

5. Economic Stability

• Amid global recession fears, India’s consistent 6–7% growth adds stability to global markets.

India’s Role in Global Economy

• Manufacturing Hub: “Make in India” and PLI schemes attract global companies.

• Tech Powerhouse: IT services, digital payments, and startups lead globally.

• Energy Transition: Investment in renewables makes India a leader in climate action.

• Trade Partnerships: Expanding FTAs with UK, UAE, and others.

India’s economic performance is not only stabilising for its 1.4 billion people but also for the global supply chain.

Military & Strategic Importance

• India has one of the world’s strongest militaries, ranking in the top 5 globally.

• Plays a crucial role in ensuring stability in the Indian Ocean Region (IOR).

• Engages in defense diplomacy, providing training and support to friendly nations.

• Strengthens alliances via Quad, Indo-Pacific partnerships, and defense exports.

This makes India a security stabiliser, not just an economic one.

Technology, Innovation & Digital Leadership

India’s rise also comes from its digital revolution:

• UPI & Digital Payments: Exported to many countries.

• AI & Startups: A booming ecosystem attracting global investors.

• Space Leadership: Chandrayaan-3 and Aditya-L1 boosted India’s global standing.

Such innovations make India a technological stabiliser, especially for developing nations.

Implications for the Future World Order

Sitharaman’s statement reflects a global transition:

• No longer will the US, China, or any single nation dominate.
• Power is becoming diffused across multiple poles.
• India’s role as a responsible, democratic, and stabilising force will be critical in shaping this multipolar world.

For the Global South, India offers representation.
For the West, India offers partnership.
For Asia, India offers balance against China.

Challenges India Must Address

While India’s rise is promising, challenges remain:

• Geopolitical Pressures: Managing ties with both US and Russia while countering China.
• Economic Inequality: Balancing growth with inclusive development.
• Defense Modernisation: Keeping pace with evolving threats.
• Climate Commitments: Meeting net-zero targets while ensuring energy security.

How India navigates these challenges will define whether it can sustain its stabilising role.

FAQs

1. What did FM Sitharaman mean by “India’s rise is not accidental”?

She meant that India’s global influence is the result of deliberate policies, reforms, and strategic positioning, not mere chance.

2. What does “hegemon dominance contested” imply?

It means no single superpower can unilaterally dictate global affairs anymore; multiple powers like India, China, EU, and others are shaping the world order.

3. Why is India considered a stabilising force?

Because of its neutral diplomacy, strong economy, democratic values, and ability to balance relations between East and West.

4. How has India helped the Global South?

By voicing concerns about climate finance, debt restructuring, trade justice, and inclusivity at global forums like G20.

5. Can India replace a hegemon like the US?

India may not replace the US but can become a key pole in a multipolar world, influencing global decisions significantly.

Conclusion

FM Nirmala Sitharaman’s statement captures the essence of India’s transformation. The country’s rise as a stabilising force is a story of resilience, reforms, diplomacy, and strategic foresight.

As absolute dominance of a single hegemon fades, the world looks toward multipolarity. In this shift, India stands tall as a trusted voice, a reliable partner, and a balancing power.

Its journey is far from accidental — it’s a deliberate path, charted over decades. And as the world grapples with uncertainty, India’s stabilising role will only grow stronger in shaping a more balanced, inclusive, and multipolar global order.

India’s Rise as a Stabilising Force Not Accidental: FM Sitharaman 

Power of Compounding in One-Time Investment: How ₹3 Lakh Can Grow Bigger Than ₹30 Lakh

Power of Compounding in One-Time Investment: Can ₹3 Lakh Grow Bigger Than ₹30 Lakh?

Introduction

“Money makes money, and the money that money makes, makes more money.” This simple idea perfectly explains the power of compounding. When you invest a certain amount of money and let it grow over time, not only does your original investment earn returns, but those returns also start earning more returns. This is how wealth is built steadily, even from small beginnings.

Now comes the big question: Can a one-time investment of ₹3 lakh actually grow into more than ₹30 lakh? The answer is yes—with the magic of compounding, disciplined patience, and the right investment choice, this is absolutely possible.

In this article, we will explore how compounding works, how a ₹3 lakh lump-sum investment can multiply into more than ₹30 lakh, the best options to achieve it, and the mindset needed to stay invested for the long haul.

What is Compounding?

Compounding means earning interest on both your initial investment (principal) and the returns you have already earned. Over time, this creates an exponential growth effect.

For example:

If you invest ₹10,000 at 10% annual return, in the first year you earn ₹1,000.

In the second year, you don’t just earn 10% on ₹10,000 but on ₹11,000 (your principal + first year’s interest).

By the 10th year, your ₹10,000 grows into ₹25,937, not just ₹20,000.

This shows how time and reinvestment make a huge difference. The longer you stay invested, the more powerful compounding becomes.

Rule of 72: The Shortcut to Understand Growth

The Rule of 72 is a simple trick to estimate how fast your money doubles.

Formula: 72 ÷ Rate of Return = Years to Double

Examples:

At 6% return → 72 ÷ 6 = 12 years to double.

At 12% return → 72 ÷ 12 = 6 years to double.

At 15% return → 72 ÷ 15 = 4.8 years to double.

This means, at 12% return, your ₹3 lakh becomes ₹6 lakh in 6 years, ₹12 lakh in 12 years, and so on. With time, the multiplication accelerates.

Can ₹3 Lakh Really Become More Than ₹30 Lakh?

Yes, and here’s the math:

Scenario 1: Conservative Growth (8% annual return)

• 10 years → ₹6.47 lakh
• 20 years → ₹13.98 lakh
• 30 years → ₹30.48 lakh

👉 At just 8% annual growth, ₹3 lakh turns into over ₹30 lakh in 30 years.

Scenario 2: Moderate Growth (12% annual return, typical for equity mutual funds)

• 10 years → ₹9.32 lakh
• 20 years → ₹29 lakh
• 25 years → ₹51.5 lakh
• 30 years → ₹93 lakh

👉 At 12% growth, ₹3 lakh becomes ₹30 lakh in less than 20 years.

Scenario 3: Aggressive Growth (15% annual return, long-term stock market average for best companies)

• 10 years → ₹12.14 lakh
• 20 years → ₹49 lakh
• 25 years → ₹100 lakh+
• 30 years → ₹198 lakh

👉 At 15% growth, ₹3 lakh crosses ₹30 lakh in just 16 years.

This shows that the time horizon and return rate are the two most critical factors. Even a modest return rate, when combined with patience, can turn a small one-time investment into life-changing wealth.

Why Patience is the Secret Ingredient

The most common mistake investors make is breaking compounding too early.

• They withdraw money after 5–7 years, expecting big gains.
• They panic during market downturns and redeem their investments.
• They underestimate the exponential effect of “time”.

To turn ₹3 lakh into ₹30 lakh, you must stay invested for at least 20–30 years depending on your chosen investment option. Compounding is slow in the beginning but explosive in the later years.

Think of it like planting a tree. In the first few years, growth is hardly visible. But after a decade, it grows rapidly, giving fruits and shade for life.

Best Investment Options to Harness Compounding

Not every investment vehicle allows compounding to show its true power. Here are the best long-term investment options for growing ₹3 lakh into ₹30 lakh:

1. Equity Mutual Funds

• Average return: 12–15% over the long term.
• Ideal for: 15–25 years horizon.
• Example: Investing ₹3 lakh in a diversified equity mutual fund could become ₹93 lakh in 30 years (at 12% return).

2. Direct Equity (Stocks)

• High risk, high return.
• If invested in quality blue-chip or growth companies, returns can reach 15–18%.
• Example: ₹3 lakh in a stock like Infosys or HDFC Bank (20 years ago) would now be worth crores.

3. Public Provident Fund (PPF)

• Average return: 7–8% (government-backed).
• Safe and tax-free.
• Example: ₹3 lakh becomes ~₹30 lakh in ~30 years. Perfect for risk-averse investors.

4. National Pension System (NPS)

• Hybrid of equity + debt.
• Returns: 9–12%.
• Long lock-in ensures compounding works without interruption.

5. Fixed Deposits (FDs)

• Returns: 6–7% only.
• Safe but not ideal for wealth creation.
• ₹3 lakh grows to only ~₹17 lakh in 30 years, not enough to beat inflation.

Inflation: The Silent Wealth Eater

While compounding grows your money, inflation reduces its purchasing power.

For example, ₹30 lakh today may seem huge, but after 25–30 years, its real value will be much lower. Assuming 6% inflation:

• Value of ₹30 lakh after 20 years = ~₹9 lakh in today’s terms.
• Value of ₹30 lakh after 30 years = ~₹5 lakh in today’s terms.

👉 This is why investing in instruments that beat inflation (like equities and equity mutual funds) is critical.

Mindset Needed for Compounding to Work

1. Think Long-Term – Wealth through compounding is not built in 5 years, but in 20–30 years.
2. Don’t Panic in Market Crashes – Markets may fall, but long-term investors always win.
3. Reinvest Returns – Never withdraw interest or dividends; reinvest them to maximize growth.
4. Be Consistent – Even if it’s a one-time investment, review and hold with discipline.
5. Avoid Greed – Don’t chase unrealistic returns (Ponzi schemes, speculative bets).

Real-Life Examples

Example 1: Warren Buffett

Buffett started investing at 11. Today, 99% of his wealth was made after the age of 50. Why? Because he let compounding do its magic for decades.

Example 2: Infosys IPO (1993)

• IPO price: ₹95 per share.
• Today’s price (2025): Over ₹1,600 (excluding bonuses and splits).
• ₹3 lakh invested in Infosys IPO would be worth crores today.

Example 3: PPF Account

Many Indian middle-class families who invested just ₹500/month in PPF 30 years ago now have lakhs in their account, simply because they let compounding and tax-free returns grow quietly.

The Mathematics of Compounding (Formula)

The formula for compound interest is:

A = P (1 + r/n) ^ (n × t)

Where:

• A = Final Amount
• P = Principal Investment
• r = Rate of Return (in decimal)
• n = Number of times interest is compounded per year
• t = Time (years)

Example:
₹3,00,000 invested at 12% annual return for 25 years →

A = 3,00,000 (1 + 0.12/1) ^ (1×25) = ₹51,47,570

This is the mathematical proof of how compounding transforms money.

FAQs

1. Can ₹3 lakh really grow into more than ₹30 lakh?

Yes. At 8% return, it takes ~30 years. At 12% return, it takes ~20 years.

2. What is the best option for compounding?

Equity mutual funds and long-term stock investments are the best for high growth.

3. Is PPF enough to reach ₹30 lakh from ₹3 lakh?

Yes, but it will take around 30 years due to lower returns (7–8%).

4. Should I invest lump-sum or in SIPs?

Both work. A lump sum benefits from starting early, while SIPs add discipline and reduce risk.

5. How important is time in compounding?

Time is the most important factor. The longer you stay invested, the more exponential the growth.

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Conclusion

The power of compounding is often called the eighth wonder of the world, and rightly so. What looks like a modest ₹3 lakh investment today can grow into ₹30 lakh, ₹90 lakh, or even crores if given enough time. 

The key lies in starting early, choosing the right investment vehicle, and staying invested for the long term.

So, the answer to the question—Can ₹3 lakh grow bigger than ₹30 lakh? —is a resounding YES. All it needs is patience, discipline, and trust in the process of compounding.

If you plant the seed of ₹3 lakh today and let it grow without interruption, you will harvest not just ₹30 lakh but potentially far more, securing your financial freedom in the years ahead.

Power of Compounding in One-Time Investment,