India To Remain Fastest-Growing Economy, May Perform Even Better: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Monday reaffirmed that India will continue to be the fastest-growing major economy, possibly exceeding its current growth trajectory.

She pointed to a strong performance across key sectors and the expectation of a good monsoon as positive indicators for sustained economic momentum.

According to the latest data from the Reserve Bank of India (RBI), India’s GDP grew by a robust 7.4% in the fourth quarter of FY 2024-25. This pushed the overall annual growth to 6.5%, driven by agriculture, construction, and services.

Agriculture to benefit from good monsoon: Nirmala Sitharaman

The Finance Minister expressed optimism about the agriculture sector, stating that a favourable monsoon would further boost growth and bring in more positive numbers for rural India.

Highlighting India’s transparent and digitised systems, Sitharaman noted that digital access is enabling ordinary citizens and small retailers to manage their finances independently.

“Our systems are accessible from home, and individuals no longer need to rely on others to complete basic financial tasks. These are clear signs of a dynamic and maturing economy,” she said.

Balanced support for labour and capital-intensive sectors

The government, Sitharaman assured, will continue to support both labour-intensive and technology-driven manufacturing sectors.

“We have specifically targeted support for handicrafts and handmade goods. There is no preference between labour and capital. Whether a unit is employment-intensive or automated, it will receive policy support,” she said.

She credited the PM Modi government’s policies over the past 11 years for strengthening Micro, Small and Medium Enterprises (MSMEs), noting that each budget has introduced concrete measures in their favour.

Drawing a parallel with the success of the Aspirational Districts Programme, Sitharaman said the Dhan-Dhaanya Krishi Yojana would now focus on enhancing agricultural productivity and increasing value addition in farming.

“I have urged banks to roll out tailor-made financial schemes in these 100 districts to support rural development,” she added.

Strengthening India’s defence sector

Sitharaman also underscored the government’s commitment to bolstering India’s defence preparedness.

“Prime Minister Narendra Modi has ensured that defence requirements are not compromised. Since 2014, we have focused on fulfilling both small and large defence needs—from bulletproof jackets to timely logistics support in difficult terrains,” she said.

She highlighted the growth of domestic defence production, stating that Indian manufacturers are now not only meeting domestic demand but also becoming significant exporters.

“Today, Indian defence production is making a mark globally, and the ability to source locally has fundamentally strengthened our defence capabilities,” the Finance Minister concluded.

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