Sustaining Growth: FM Sitharaman's Vision for India
In a recent interview, Finance Minister Nirmala Sitharaman highlighted the Indian government's commitment to sustaining growth through substantial capital expenditure. The 2026-27 budget allocates an impressive Rs 12.22 lakh crore, marking an 11.5% increase from the previous year. This focus on growth is essential as the nation navigates economic challenges.
Sitharaman pointed out that the private sector is transitioning from a passive investment approach to actively expanding capacities. She noted that investments are shifting towards newer, frontier sectors, rather than traditional manufacturing. This change is a positive indication of the private sector's readiness to play a more significant role in the economy.
Moreover, Sitharaman remarked on the changing sentiment of global investors. Countries like Norway and Canada are showing interest in investing their pension and sovereign funds in India. However, she mentioned that some North American fund managers prefer to take a wait-and-see approach. The recent call between the Indian Prime Minister and the US President has positively influenced market sentiments, particularly the stock market and the Indian rupee.
When questioned about her GDP growth estimates, Sitharaman defended her projections, labeling them as realistic rather than conservative. She believes that these estimates are achievable, citing successful growth figures from the previous year as a benchmark.
Additionally, the Finance Minister addressed the controversial tax on capital gains from sovereign gold bonds in the secondary market. She clarified that the scheme was intended for those who held the bonds to maturity and that those purchasing from the secondary market do not fall under the same category.
Lastly, regarding the hike in Securities Transaction Tax on futures and options, Sitharaman explained that despite regulatory interventions, a significant number of participants in this market have reported losses. She emphasized that this data supports the rationale behind the tax adjustments.
Overall, Sitharaman's insights reflect a strategic approach to economic growth, balancing public expenditure with private investment and aiming for sustainable development in India.
