Decisive, Inclusive, Forward-Looking: FM Sitharaman Urges Global South to Unite at NDB
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Time of India
33 minutes ago
- Time of India
Capex push: Nirmala Sitharaman calls it ‘primary driver of sustained growth'; says ‘we have to have capital expenditure grow'
File photo: Finance minister Nirmala Sitharaman (Picture credit: PTI) Finance minister Nirmala Sitharaman on Saturday said that sustaining economic growth in the face of global uncertainties remains India's foremost priority. She also underlined that the government will continue to rely on increased public capital expenditure as a major tool to drive development. Speaking at a book launch event in New Delhi, Sitharaman said, 'To maintain the growth is the topmost priority. Growth is the topmost, and therefore, it will have an overlap with how you create jobs…', as per news agency PTI. Her comments come at a time when India's economy is projected to grow at 6.5 per cent in FY25, the slowest pace in four years, down from 9.2 per cent growth in FY24. As per PTI, the Reserve Bank of India has trimmed its GDP growth forecast for the current financial year to 6.5 per cent, down from an earlier estimate of 6.7 per cent. The Economic Survey has pegged growth for FY26 in the range of 6.3 per cent to 6.8 per cent. The finance minister highlighted that capital investments by the government will continue to be central to economic momentum. 'Public investments have kept pace. It has been Prime Minister Narendra Modi's clear instruction that we have to have capital expenditure grow and grow significantly,' she said, adding that such investments are a 'primary driver of sustained economic growth'. Sitharaman also said that India must remain relevant globally and aim for a leadership role, especially by reshaping the voice of the Global South. At the same time, balancing domestic economic ambitions within the limits of fiscal responsibility is also a key area of focus, she noted. She further pointed to the government's efforts to attract more foreign investments, stressing the importance of a favourable FDI regime and highlighting the healthy competition among Indian states in luring global investors. On trade, Sitharaman indicated a shift towards bilateral deals over multilateral arrangements. 'We have seen bilateral agreements being signed in the last four to five years with Australia, UAE and the UK. Negotiations are progressing well with the United States as well as the European Union,' she said, as per PTI. Speaking on India's relations with China, she said that there were initial signs of improvement following external affairs minister S Jaishankar's recent visit. 'There is something, some kind of a beginning… how far it will go is something we will have to wait and see,' she remarked, while also stressing the need for 'a sense of caution'. The remarks were made during the release of the book 'A World in Flux: India's Economic Priorities.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 hours ago
- Time of India
Maintaining sustained growth top priority, says FM Sitharaman
New Delhi: Maintaining sustained growth is the top priority amid global uncertainties, and an incremental rise in public capital expenditure is one of the drivers for economic development, Finance Minister Nirmala Sitharaman said on Saturday. The statement assumes significance as the Indian economy grew by 6.5 per cent in FY25. This growth was the slowest in four years, and compares to a 9.2 per cent expansion in the previous 2023-24 fiscal. The Economic Survey has projected the GDP growth for FY26 between 6.3 per cent and 6.8 per cent, while the RBI lowered its growth forecast from an earlier level of 6.7 per cent to 6.5 per cent for the ongoing financial year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Only Classless Women Wear these Over a Certain Age Learn More Undo Speaking at a book release event here, Sitharaman said, "To maintain the growth is the topmost priority. Growth is the topmost, and therefore, it will have an overlap with how you create jobs..." Keeping India relevant amid global challenges and being there in a leadership position, and moving forward along with other countries are other priority areas, she said, adding that the priority would also be to redefine the voice of the Global South. Live Events Finding resources for meeting many domestic economic aspirations within fiscal constraints is another priority, she said while releasing the book titled 'A World in Flux: India's Economic Priorities'. She further said the incremental rise in public capital expenditure is one of the primary drivers of sustained economic growth. "Public investments have kept pace. It has been Prime Minister Narendra Modi's clear instruction that we have to have capital expenditure grow and grow significantly. I confidently believe that it is one of the primary drivers of sustained economic growth," she said. The other focus area of the government is to push growth through a friendly and attractive FDI policy to be able to get more and more investments happening in India. Besides, she said, the healthy competition among states to attract investment is also a good sign. Speaking about bilateral trade deals, the finance minister said such agreements are taking priority over multilateral trade. "On the bilateral trade front, we are moving forward and we have seen bilateral agreements being signed in the last four to five years with Australia, UAE and the UK. Negotiations are progressing well with the United States as well as the European Union," she said. Asked about relations with China, Sitharaman said it is getting a bit better, and the beginning has been made with the visit of the External Affairs Minister recently. "We need more access, and we need to have a lot more interaction, and possibly open some windows. And that's not just from our side, even the Chinese have been approaching through the MEA. "So, you had External Affairs Minister S Jaishankar go. There is something, some kind of a beginning, as to how much it will take us far; how far it will go is something we will have to wait and see. It might help the economy; however, a sense of caution would have to be built in," she added.
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Business Standard
3 hours ago
- Business Standard
Growth must mean jobs, value addition and economic stability: Sitharaman
India's top economic priority is not just growth, but ensuring that growth is meaningful, inclusive and sustainable, Finance Minister Nirmala Sitharaman said on Saturday, as she laid out a comprehensive view of how the country must respond to a fast-changing global and domestic economic landscape. 'The topmost priority is growth,' she said. 'It's about jobs, value addition and the quality of the growth - what goes into GVA (gross value added) matters.' She said India must adapt dynamically to global shifts, while balancing domestic aspirations with fiscal prudence. 'We must define how this movement forward is going to take place - with India at the table,' she asserted. Sitharaman was speaking at the launch of A World in Flux: India's Economic Priorities, a new book honouring noted economist Shankar Acharya. The event, held at the India International Centre, brought together a host of senior policymakers and economists. The volume, published by Rupa Publications and co-edited by Professor Amita Batra and veteran journalist A K Bhattacharya, features essays on the shifting global order and its implications for India. A dynamic global puzzle Reflecting on the theme of the book, Sitharaman said the phrase A World in Flux aptly describes today's geopolitical and economic environment. 'Institutions that were once seen as stable and effective - particularly multilateral institutions - now appear to be in a state of limbo. Not just financial institutions, but strategic ones as well.' She urged India to remain agile and proactive in this evolving context. Using a vivid metaphor, she asked: 'Are you going to be a static piece or a dynamic one? And how do you keep redefining the contours of your piece so that you still fit in, even as the puzzle keeps changing?' India, she said, must go beyond just being a participant and take an active role in shaping global frameworks. 'It's not just about being present; we must define how this movement forward is going to take place - with India at the table.' Balancing ambition with responsibility At home, Sitharaman stressed the importance of aligning growth strategies with fiscal prudence and inclusive development. 'It's one thing to aspire to be at the table and to maintain growth, but fundamentally, we must support the economy at every level.' She argued that India's policy focus must be on building long-term systems, not just distributing short-term benefits. 'We need to attend to the aspirations of every section -- not just by giving money, but by building systems that enable them to grow.' This includes creating jobs to harness India's demographic advantage, and managing resources in a way that supports long-term economic stability. 'The challenge lies in aligning domestic aspirations with resource availability and ensuring that economic priorities evolve accordingly,' she said. Public investment as a growth engine Sitharaman underlined the government's continued focus on public capital expenditure to sustain economic momentum. 'The numbers are before you each year -- it's a clear instruction from the Prime Minister that capital expenditure must grow, and grow significantly,' she said. Calling this a cornerstone of India's growth model, she noted that public investment has increased consistently in recent years. 'This is one of the primary drivers of sustained economic growth,' she said, while also acknowledging that overall investment levels could still improve. Policy environment, private sector recovery The finance minister also spoke about efforts to improve the investment climate. 'The policy on FDI is made friendly and attractive enough to bring in more investments,' she said, adding that state governments are also actively competing to attract capital. 'Each one is doing its best—and the more successful ones are setting benchmarks for others to catch up.' She noted that the private sector has strengthened in recent years, especially after the resolution of the twin balance sheet problem and the 2019 corporate tax cuts. 'After Covid — and even starting from 2019 — you can see that the corporate sector is healthier.' According to her, industry players are now showing more interest in production-linked investments. 'There is a visible shift from just financial engagement to actual investment in production and expansion.' 'We are moving forward' Addressing the persistent concern around employment, Sitharaman admitted that job creation remains a challenge but struck a hopeful note. 'At least we are moving forward,' she said. In conclusion, her remarks painted a picture of an India that is not only adapting to global shifts but also taking steps to lead responsibly, ensuring that growth is equitable, job-creating and future-ready.
