Indian economy poised to be the fastest growing; the number could be even better
Despite ongoing global geopolitical challenges, India’s economy is expected to maintain its position as the fastest-growing in the world, with potential for even stronger performance, Finance Minister Nirmala Sitharaman has said.
In an interview to businessline, the FM said the Centre is likely to convey to the Finance Commission that its financial position is considered before a decision is made on revising the vertical devolution of funds to the States. The FM simultaneously informed that intense work is under way on GST rate rationalisation and the option of higher GST rate on sin goods post March 31, 2026 cannot be ruled out.
The Minister expressed confidence in India’s growth trajectory and outlined key strategies to accelerate it further. “We are also, at the macro level, conscious that we need to have more trade agreements, need to open up on very many more sectors, make banks be more amenable for industry and their needs, and make banks understand that credit should be tailored to the requirement of different segments. With all that done, I don’t see any reason for us to worry about our growth. We will continue to be the fastest growing at this number or even better number,” she said.
While the Economic Survey has projected a growth rate between 6.3 per cent and 6.8 per cent for FY26, the Reserve Bank of India has forecast 6.5 per cent growth.
As various agencies are in the process of completing sovereign ratings, the Minister hoped that they will consider more positive factors such as energy surplus, availability of credit from the banks, mobility and rising purchasing power of people beside others. “I think there will be a lot more reasons governing their judgement,” she said. India has not seen rating upgrades for more than a decade, though outlook has been changed.
