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Sitharaman Says Reforms Helped India Withstand Global Headwinds
India’s economy grew by 7.8% in the first three months of its 2026-27 financial year.
Finance Minister Nirmala Sitharaman said this happened despite difficult conditions around the world.
Factories grew by 9.2%, and financial and professional services grew by 12.1%.
India also had about $700 billion in foreign-exchange reserves.
Sitharaman said people, state governments and businesses helped support the economy.
She said the government removed more than 1,000 old laws and simplified about 40,000 rules.
India is also trying to attract more foreign investment and improve trade relationships.
At the G20, it supported talks about economic growth, global imbalances and financial literacy.
India recorded 7.8% GDP growth in the first quarter of FY2026-27, according to Finance Minister Nirmala Sitharaman.
Manufacturing grew 9.2%, while financial and professional services expanded 12.1%; foreign-exchange reserves reached about $700 billion.
Sitharaman credited citizens, state governments, reforms, simplified regulations and investor confidence for the economic performance.
She said more than 1,000 laws had been removed and about 40,000 regulations simplified to reduce compliance burdens.
At G20 meetings, India backed discussions on growth, global imbalances and financial literacy while pursuing deeper bilateral economic ties.
- Who
- Finance Minister Nirmala Sitharaman, Indian citizens, state governments, businesses and India’s international economic partners.
- What
- Sitharaman discussed India’s 7.8% first-quarter GDP growth, economic reforms, investment efforts and G20 engagement.
- Where
- The interview was conducted in New Delhi; Sitharaman also discussed engagements in Canada, Chicago, New York and G20 meetings.
- When
- The discussion followed the release of Q1 FY2026-27 GDP figures; several planned bilateral dialogues were expected during the same year.
- Why
- She said reforms, reduced compliance burdens, state-level action, investor confidence and citizens’ work helped India manage global economic challenges.
Government’s Positive Assessment
Opposition’s Negative Characterization
Condition of the Indian economy
Government’s Positive Assessment
Sitharaman said the 7.8% GDP growth and expansion across sectors show that India is performing strongly despite global challenges.
Opposition’s Negative Characterization
Sitharaman said opposition leader Rahul Gandhi has repeatedly described the Indian economy as a “dead economy.”
Interpretation of economic data
Government’s Positive Assessment
Sitharaman argued that consistently positive quarterly figures reflect citizens’ hard work and should be recognized, while acknowledging that some areas could still improve.
Opposition’s Negative Characterization
The characterization attributed to the opposition presents a substantially more negative view of India’s economic condition than the government’s assessment.
Key facts
- GDP growth
- 7.8% in Q1 FY2026-27
- Manufacturing growth
- 9.2%
- Financial and professional services growth
- 12.1%
- Foreign-exchange reserves
- About $700 billion
- Regulatory changes
- More than 1,000 laws removed and about 40,000 regulations simplified
- Investment measures
- Bilateral trade agreements, investor-protection agreements and FCNR deposits were cited as confidence-building measures
- G20 priorities
- Growth, global imbalances and financial literacy
Quotes
Nirmala Sitharaman
India’s Finance Minister
“Despite these global challenges, if Indian economy is still growing at 7.8% in the first quarter of this financial year 2026-2027, it's heartening that the people's hard work is bearing fruit.”
thehansindia.com
thehansindia.com
“We, as you know, have reduced a lot of compliance burden on the citizens, whether it is by reforming the acts, by simplifying the regulations and also by removing archaic laws.”
thehansindia.com
Sources
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