Indians powering robust growth, taking economy forward: FM Sitharaman (AHN Exclusive)

Asheville, Sep 1 (AHN) India’s 7.8 per cent economic growth in the first quarter reflects the hard work of its people and the growing strength of its manufacturing and services sectors, Finance Minister Nirmala Sitharaman has said.

In an exclusive interview with AHN on the sidelines of the G20 Finance Ministers’ meeting here, FM Sitharaman said the latest estimates showed broad-based growth across the economy.

“Estimates say that 7.8 per cent is the growth for quarter one of this financial year, 26-27,” she said.

Manufacturing grew by 9.2 per cent, while the financial and professional services sector expanded by 12.1 per cent, she said. India’s foreign exchange reserves stood at slightly more than $700 billion.

“So across the board, growth is really clearly showing that Indians are working hard and taking the economy forward,” FM Sitharaman said.

“Prime Minister Modi has given us the Viksit Bharat goal for 2047. If every quarter Indians are able to lift the Indian economy like this, I’m sure clearly by 2047, the goal will be achieved,” she said.

The Finance Minister attributed the economy’s resilience partly to reforms undertaken across government departments, ministries and the financial sector. She also highlighted the role of India’s digital public infrastructure in helping smaller enterprises reach international markets.

“The way in which digitalisation has helped small, micro, medium businesses to be able to access the global markets because of the deep penetration of the UPI, the NPCI, the QR codes and everything else, the Indian economy’s robustness has come out,” she said.

FM Sitharaman acknowledged that India continued to face challenges, including its dependence on imported crude oil, petroleum products and fertilisers such as urea, ammonia and DAP.

She, however, described India as “an economy which is receptive to the changes globally and adjusts itself in such a way that our growth does not get affected”.

“Yes, the challenges are there, and we will work as a government to position India in an advantageous way each time when there is a challenge,” she said.

FM Sitharaman also credited state governments for making it easier to do business. She said more than 1,000 archaic laws had been removed and about 40,000 regulations simplified.

The government was engaging continuously with industry, businesses and trade, while pursuing bilateral trade agreements and investor protection agreements, she said.

On the G20 deliberations, FM Sitharaman said India supported the priorities placed before the grouping by the US presidency, including economic growth, global imbalances and financial literacy.

“Growth is a central point for the G20’s financial track. Equally, the imbalances, global imbalances will have to be sorted out,” she said.

“I appreciate the US presidency in taking up these points, and we’ve been contributing in the discussions,” she added.

The Finance Minister also held talks with US Treasury Secretary Scott Bessent on the sidelines of the meeting.

“I may also add here that I’ve had a very positive, constructive, bilateral discussion with Secretary Bessent today,” she said.

FM Sitharaman said she also held bilateral meetings with representatives of Poland, Qatar, South Korea and Russia.

“Everyone has had facts about India in their hands, and they’re looking forward to deepening their relationship with India,” she said.

The Finance Minister began her overseas visit in Canada, where she met her Canadian counterpart and held detailed discussions with pension funds interested in investing in India. She then travelled to Chicago, where she met funding agencies and visited the Polsky Center for Entrepreneurship and Innovation.

After completing her G20 engagements in Asheville, FM Sitharaman is scheduled to travel to New York to meet prospective investors. She said the government would continue reforms in customs and banking, including measures to make import clearances at Indian ports more seamless.