2 days ago
Sitharaman Says India Will Sustain Seven-Percent Growth Despite Global Headwinds
India’s finance minister says the country’s economy can keep growing by about 7 per cent in FY27.
She said India has continued growing strongly since the Covid-19 pandemic.
Global conflicts and shipping problems made some supplies harder to obtain.
India found other ways to bring in important supplies such as fuel, gas and fertilisers.
The government also kept fertiliser prices steady for farmers by using subsidies.
India wants more money from investors in other countries to help its economy expand.
However, the amount of new foreign direct investment has fallen in recent years.
Other estimates put India’s FY27 growth slightly below the finance minister’s projection.
Finance Minister Nirmala Sitharaman projected India’s growth at 7 per cent or more in FY27.
She said India had managed supply disruptions linked to the US-Iran conflict and Strait of Hormuz closure.
Essential supplies were rerouted, while fertiliser prices remained unchanged through government subsidies.
The government plans further reforms and efforts to attract international investment and capital.
Net FDI fell from an average of $40 billion in FY20-FY22 to $6.95 billion in FY26.
- Who
- Finance Minister Nirmala Sitharaman and the Government of India.
- What
- Sitharaman projected that India would sustain economic growth of 7 per cent or more in FY27 while pursuing reforms and overseas investment.
- Where
- While addressing the Indian diaspora in Chicago, United States.
- When
- She made the remarks on Sunday; FY27 refers to the 2026-27 financial year.
- Why
- To explain India’s economic outlook, resilience during global disruptions and need to attract capital for its expanding ambitions.
Government Growth Outlook
More Cautious Estimates
FY27 economic growth
Government Growth Outlook
Nirmala Sitharaman said India is likely to sustain growth of 7 per cent or more in FY27, citing its post-pandemic performance and resilience.
More Cautious Estimates
The Economic Survey projects growth of 6.8-7.2 per cent, while the Reserve Bank of India estimates growth at 6.7 per cent.
Foreign investment needs
Government Growth Outlook
The government says India needs more overseas capital to meet its expanding ambitions and is engaging global funds and negotiating investment treaties.
More Cautious Estimates
The recent slowdown in net FDI—from an average of $40 billion in FY20-FY22 to $6.95 billion in FY26—highlights the challenge of attracting that capital.
Key facts
- FY27 growth projection
- The government’s projection is 7 per cent or more; the Economic Survey estimates 6.8-7.2 per cent, while the Reserve Bank of India estimates 6.7 per cent.
- Recent growth
- The economy has grown by more than 7 per cent in each of the last five years, after contracting 5.8 per cent in FY21.
- Supply disruptions
- The Strait of Hormuz closure affected supplies of petroleum products, natural gas and fertilisers.
- Fertiliser support
- The government kept fertiliser prices unchanged for farmers through subsidies and said supplies were adequate for the forthcoming season.
- Net FDI trend
- Net foreign direct investment fell from an annual average of $40 billion in FY20-FY22 to $6.95 billion in FY26.
- Investment efforts
- The government is pursuing bilateral investment treaties, bilateral trade agreements and discussions with global funds.
- Japan investment target
- Commerce and Industry Minister Piyush Goyal pushed to mobilise $60 billion in investments from Japan by 2035.
Quotes
Nirmala Sitharaman
India’s Finance Minister
“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.”
rediff.com
“Because of the ambitions that we have, we need capital. Therefore on my trip (to Canada and the US) and other ministers as well as the prime minister himself, all of us are talking to global funds.”
rediff.com
Sources
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