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Sitharaman Warns Against Splurging, Highlights India's Growth and China Trade Gap
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Firstpost•16-10-2026, 12:34
Sitharaman Warns Against Splurging, Highlights India's Growth and China Trade Gap
- •Finance Minister Nirmala Sitharaman stressed fiscal prudence and infrastructure investment during the IMF-World Bank meetings, stating the government cannot be splurging money.
- •India's economy is projected to grow by 7 percent this year, well above the global average of 3.1 percent, supported by targeted public borrowing for asset creation.
- •Sitharaman raised concerns over India's exponentially growing trade deficit with China, citing restrictive non-tariff barriers despite ongoing negotiations.
- •India is actively pursuing bilateral trade agreements with partners like the US, UK, and EU to diversify export destinations and secure predictable market access.
- •The finance minister called for governance reforms at the IMF to ensure better representation for emerging economies and faster support for nations facing debt distress.
Key Questions Answered
The IMF's October 2026 outlook projects India's economy to grow at 7 per cent this year.
India's dependence on imported crude oil and fertilisers, alongside an exponentially growing trade imbalance with China, exposes the economy to external shocks.
India is exploring rupee and local-currency settlements to facilitate trade and assist countries that are starved of hard currencies but still need to import essential goods.
