FM Sitharaman said India is likely to sustain economic growth of 7% or more in 2026-27 (FY27), noting that the country is continuing the pace recorded in the years since the Covid-19 pandemic. Addressing the Indian diaspora in Chicago, United States, FM Sitharaman said, "Since then (Covid), we have been sustaining growth at 7% or more. This year too our growth will be in that range."
Key Highlights
- FM Sitharaman said India's economic growth will stay above 7% in FY27, continuing the post-Covid growth pace.
- Government targets bringing borrowing down to 50% of GDP by 2030, having met its FY26 fiscal deficit path.
India to Maintain Growth Momentum Despite Global Uncertainties
India is likely to maintain its growth momentum despite geopolitical uncertainties and supply-chain disruptions arising from the US-Iran conflict and the closure of the Strait of Hormuz, FM Sitharaman added.
"Continuously keeping in touch with global uncertainties as much as understanding India's own requirements have kept us floating. Whereas many countries are completely disturbed, their calculations have gone haywire," she said.
Government Targets Bringing Borrowing Down to 50% of GDP by 2030
On fiscal consolidation, FM Sitharaman said, "We have set ourselves a certain target, which is to bring the borrowing down to the 50% level of the GDP growth by 2030. Therefore, I will be working on that path. There are advanced economies whose debt is well over 200% of their GDP even now."
She added that the government has also set itself a fiscal discipline path on the fiscal deficit, noting that India has fulfilled this trajectory. "The last mile that had to be reached by 2025-26, we have reached," the Finance Minister said.
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FM Sitharaman Highlights Viksit Bharat 2047 Target
FM Sitharaman said 2047 is the target year set for achieving Viksit Bharat (developed India), noting that this milestone is now hardly 20 years away, requiring the pace and scale of reforms to be matched with significantly greater support.
"Lots more support from people who are talented and have exposure. Lots more support from people who can give ideas for us to carry it forward. And, above all, support in terms of capital, which is so required for a country to meet all its aspirations," the Finance Minister added.
