India's Economic Trajectory Steady, Reform-Driven: Finance Minister Sitharaman

 India's Economic Trajectory Steady, Reform-Driven: Finance Minister Sitharaman

New Delhi: Union Finance Minister Nirmala Sitharaman, in a candid interaction with The Financial Express, expressed confidence in India’s economic momentum, reiterating that the country’s current position on the global stage reflects years of fiscal discipline, reform, and resilience. “India’s economic buoyancy cannot be overstated; otherwise, we would not be where we are today,” she said, adding that the path to becoming a developed nation by 2047—Viksit Bharat—is well within reach if strategic decisions are implemented in time.

Sitharaman acknowledged that entering into trade and economic partnerships with advanced economies, particularly the United States, will be a cornerstone of this vision. “The sooner we finalise agreements with strong economies, the better positioned we will be to benefit from global integration. These deals are not just about market access—they are about aligning with global value chains,” she noted.

On Trade Talks with the US

When asked about the unpredictability of statements from former U.S. President Donald Trump—particularly his bold claim that the U.S. would “open up” India’s economy—the Finance Minister maintained composure. “India is a sovereign nation. While public commentary from any leader is noted, trade negotiations are formal, bilateral processes guided by mutual respect,” she said. “Such unilateral remarks do not influence our negotiating stance. Our interests will always be safeguarded.”

India and the U.S. have long discussed a comprehensive trade pact that would open up sectors such as agriculture, pharmaceuticals, digital services, and manufacturing. The Finance Minister affirmed that discussions remain constructive, and India will engage based on parity and mutual gain. “Our economic ambitions don’t dilute our policy autonomy,” she asserted.

Second-Generation Reforms Coming

Sitharaman also revealed that a new wave of “second-generation” structural reforms will be rolled out in the coming months. While details remain under wraps, these reforms are expected to focus on improving ease of doing business, land and labour regulations, capital market deepening, and tax simplification.

“The first round of reforms post-1991 focused on liberalisation and opening up markets. What we need now are reforms that empower businesses to scale, reduce compliance burdens, and deepen investor confidence,” she explained.

The Finance Ministry is currently evaluating inputs from industry leaders, economists, and state governments to fine-tune these next steps. “These reforms are not isolated policies—they are part of an integrated effort to modernise our economy.”

India’s Resilience and Growth Prospects

Sitharaman also highlighted India’s post-Covid recovery as one of the strongest among major economies. With GDP growth projected to stay above 7% in the current fiscal year, she attributed the momentum to robust public investment, a growing manufacturing sector under PLI schemes, and a strong digital infrastructure.

“Whether it’s financial inclusion, GST revenues, or credit growth—every key indicator is moving in the right direction,” she said.

As India positions itself to become a $5 trillion economy and beyond, Sitharaman believes consistent policy, openness to global partnerships, and a commitment to reform will be essential. “We’re not looking for shortcuts. Our growth story is real, and it is built to last.”