Union Finance Minister of India, Nirmala Sitharaman, reinforced India's growth story, citing the economy's fundamental drivers — consumption and investment demand gaining momentum, reported the news agency PTI on Saturday, October 26, citing the minister addressing the 50th meeting of the International Monetary and Financial Committee (IMFC).
With the healthy balance sheets of banks and corporations, supply chain normalisation, business optimism, and robust government capital expenditure, real GDP is expected to grow at 7.2 per cent for 2024-25 and inflation at 4.5 per cent, said Sitharaman, according to the agency report.
The finance minister also highlighted that the economic policies of India are rooted in inclusive growth and social empowerment, as the nation is pursuing its long-term vision of becoming a high-income economy by 2047, as per the report.
“As India pursues its long-term vision of becoming a high-income economy by 2047, it remains committed to global collaboration. The government is working toward USD one trillion in merchandise exports by 2030, leveraging improved logistics, trade reforms, and deeper integration into global value chains,” said Sitharaman, quoted in the agency report.
India aims to continue its resilience, manage inflation, and maintain policy continuity by partnering with the World Bank and global stakeholders, as per the report citing the union minister.
Nirmala Sitharaman highlighted India's achievements and said that the country has adhered to the budgeted gross fiscal deficit target of 5.6 per cent of the GDP in 2023-24, now set lower at 4.9 per cent for 2024-25 in line with the medium-term target.
Central government revenue expenditure rose 9.6 per cent in July-August, after contracting by 1.5 per cent in the previous quarter, said the finance minister, reported the agency.
India witnessed an improvement in female labour force participation, which increased from 23.3 per cent in 2017-18 to 37 per cent in 2022-23. This contributes to economic productivity and social development, she said, as per the report.
The central government's capex increased by 25.8 per cent in July-August 2024 after contracting by 35 per cent in Q1 2024-25. The government is focusing on infrastructure development and capital expenditure, which are expected to bring in private investment, said Sitharaman, as per the report.
Private investment continues to gain steam on the back of expansion in non-food bank credit, higher capacity utilisation and rising investment intentions, said Sitharman, reported the agency.
Sitharaman also said that no village in India is left without electricity coverage, highlighting the progress made since 2014, when the country lacked electrification infrastructure.
“I don't think any village in India is unelectrified today. Households have received the connections. So, if I remember the situation in 2014, there were still many villages in many parts of India, some even very close to the state capital, provincial headquarters, without even a pole to receive the electric wires. Now, all that has been overcome. Houses have got their electricity,” said Sitharaman, as per an ANI report.
Sitharaman also expressed her confidence in India's economic growth and its appeal to global investors at the International Monetary and Financial Committee on Friday.
