In a recent statement, Finance Minister Nirmala Sitharaman emphasized the critical role of political stability and consistent policy implementation in India’s pursuit of becoming the world’s third-largest economy by 2029, a target set by Prime Minister Narendra Modi.
Addressing students at the Shri Ram College of Commerce, Sitharaman stressed that India’s ascent from the fifth-largest to the third-largest economy is not guaranteed. She underscored that achieving this goal hinges on political stability, policy consistency, and decisive governance. She acknowledged the contributions of farmers, entrepreneurs, and various sectors in elevating India to its current status as the fifth-largest economy.
These remarks come in the run-up to crucial general elections next year, where a coalition of parties known as INDIA is poised to challenge the two-term rule of the Bharatiya Janata Party (BJP). The BJP, under PM Modi’s leadership, has argued that its stable governance approach has facilitated the country’s economic recovery and positioned it as the fastest-growing major economy.
Sitharaman also expressed concerns about supply disruptions in specific sectors such as food and fertilizers, a challenge exacerbated by global events like the ongoing conflict in Ukraine. These disruptions have led to shortages and price increases in essential commodities such as oil and fertilizers, posing additional challenges for governments grappling with rising inflation and slowing economic growth.
The Finance Minister stressed the importance of governments being forward-thinking, embracing reforms, and providing policy consistency to nurture business growth. She highlighted the Modi government’s approach, which focuses on empowering individuals rather than providing entitlements. This strategy involves investments in critical infrastructure, including housing, roads, drinking water, and sanitation.
Policy continuity has played a pivotal role in attracting foreign direct investment (FDI) to India. Furthermore, India’s recent inclusion in JP Morgan’s bond index for emerging markets is anticipated to result in approximately $23 billion in investments flowing into the country.
As she prepares to attend the annual meeting of the World Bank and IMF in Morocco, Sitharaman also called for reforms within multilateral agencies to better address evolving global economic challenges.