Stories
FM Sitharaman: India's Economy Resilient Amid Global Uncertainty, Built on Strong Foundations
- •FM Sitharaman highlighted India's economic resilience, stating its strength was deliberately built since 2014 to withstand future shocks.
- •She emphasized the importance of guarding finances in calm years to enable action during crises, citing India's avoidance of inflation spirals, fuel queues, and banking stress.
- •India's fundamentals remain strong with 7.8% Q1 FY27 GDP growth, 4.82% August 2026 CPI inflation, and multi-decadal low bank NPAs, despite rising global public debt.
- •Six foundations underpin this performance: efficient last-mile delivery, access to finance, robust infrastructure, a sustained reform mindset, economic stability, and fiscal prudence.
- •India aims to move from "Made in India" to "Imagined and Made in India" by prioritizing structural autonomy, global openness, skills development, and private investment in R&D to achieve Viksit Bharat by 2047.
Key Questions Answered
Real GDP grew by 7.8% in the first quarter of FY27, CPI inflation stood at 4.82% in August 2026, and the current account deficit was 0.5% of GDP. Additionally, banks' gross non-performing assets (NPAs) reached multi-decadal lows while foreign exchange reserves hit approximately $766 billion.
The six pillars include efficient last-mile delivery systems via digital public infrastructure, enhanced access to finance through initiatives like PM MUDRA Yojana, robust infrastructure capital expenditure, a sustained reform mindset, economic stability via flexible inflation targeting, and strict fiscal prudence.
The four main priorities include building structural autonomy in strategic inputs via missions like the National Critical Mineral Mission and India Semiconductor Mission 2.0, maintaining global economic openness, advancing workforce skills for emerging AI technologies, and driving a shift where private investment leads research and innovation.
