India Retains Pole Position As Fastest-Growing Economy For Fourth Year: FM Sitharaman

New Delhi, May 31 (KNN) Finance Minister Nirmala Sitharaman announced on Friday that India continues to sustain its GDP growth momentum as the world's fastest-growing economy for the fourth consecutive year. 

Speaking at the Lakshmipat Singhania-IIM Lucknow National Leadership Award ceremony, the minister attributed this performance to robust contributions from manufacturing, services, and agricultural sectors.

Sitharaman emphasised the role of enterprises across all scales in maintaining economic stability. She noted that small, medium, and large industries have collectively ensured that the country's manufacturing and service capacities remain strong. 

The minister also highlighted agriculture's resilience, particularly its ability to sustain the economy during the COVID-19 pandemic and in subsequent periods.

The Finance Minister expressed satisfaction with industrial growth figures, addressing earlier concerns about potential capacity addition shortfalls that could have impacted economic performance. 

She confirmed that India's industrial and manufacturing activities demonstrated strong performance during the fourth quarter, following the release of recent economic data.

Chief Economic Adviser V Anantha Nageswaran stated that the provisional estimates for the financial year 2025 align with expectations of 6.5 per cent growth. 

He noted that India's economic performance significantly exceeded that of contemporary economies during a period when global expansion proved challenging, describing the country's growth as resilient in a ‘growth-scarce environment.’

For the current financial year, the government maintains its growth outlook at 6.3-6.8 per cent. Nageswaran identified private consumption, particularly rural economic recovery, and sustained services exports as primary growth drivers. 

He presented additional positive indicators, including controlled food inflation due to successful rabi harvest, increased summer sowing, effective procurement systems, and above-normal monsoon conditions.

The Chief Economic Adviser also highlighted favorable external economic conditions, noting that robust export performance continues while foreign exchange reserves provide eleven months of import coverage. 

He indicated that declining crude oil prices could potentially reduce import costs, create additional fiscal space, and ease external economic pressures.

Sitharaman addressed regulatory reforms, stating that the government continues efforts to eliminate regulatory obstacles and implement streamlined regulations that enable business operations without unnecessary scrutiny. 

She called for increased confidence in India's capabilities and expressed optimism about the country's potential to achieve its economic objectives.

The Finance Minister challenged perceptions about India's development status, questioning how long the country should continue to be classified as developing when Indian professionals hold leadership positions across various sectors globally. 

She urged citizens to overcome doubts about India's capacity to achieve its goals, expressing confidence in the nation's ability to deliver on its economic aspirations.

(KNN Bureau)