Growth must mean jobs, value addition and economic stability: Sitharaman

Business Standard

4 days ago

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.