Maintaining sustained growth top priority, says FM Sitharaman
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.
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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.
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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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