India Economy
India to remain one of fastest growing economies in coming years
This story was originally published at 20:33 IST on 4 July 2025
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NEW DELHI – India is poised to remain one of the world's fastest growing economies in the coming years, Finance Minister Nirmala Sitharaman Friday said in Brazil's Rio de Janeiro. Sitharaman said the Indian economy has shown "remarkable growth and resilience" in the post-pandemic era.
"Strong focus on macroeconomic stability, targeted efforts to promote digitalisation and inclusive policy design have been instrumental in achieving this, despite facing multiple domestic and external challenges," the Indian finance minister said at the 10th annual meet of board governors of the New Development Bank in Rio de Janeiro. India's economy on average has grown over 8% in four years since the COVID-19-hit 2020-21 (Apr-Mar). It grew 6.5% in FY25, and is expected to maintain this growth this year as well.
Sitharaman said this is a defining moment for the global south, with the world facing multiple uncertainties arising from fiscal constraints in several economies, climate transition issues and evolving geopolitical dynamics. The finance minister said that multilateral development banks play a pivotal role in helping countries tackle global uncertainties.
"MDBs (multilateral development banks) have a distinctive comparative advantage in their ability to catalyse both public and private investments by offering a package of technical expertise, concessional financing, and effective risk mitigation tools thereby widening our policy options," Sitharaman said. She added that the New Development Bank--a multilateral development bank established by the BRICS nations--has emerged as a key partner.
The development bank has helped channelise development finance, and support resilient infrastructure across the global south, the finance minister said. "As the Bank enters its next phase of growth, it must focus on strategic priorities," she added.
The development bank need to mobilise private capital--a key to sustaining growth given the limited fiscal space and competing demands for public capital expenditure, Sitharaman said. It should also play a "catalytic role" in unlocking private sector capital, she said.
"Special focus must be placed on tailored support for Small and Medium Enterprises, especially women-led enterprises, to ensure inclusive participation, economic development and promote gender equity," she said. "Strengthening NDBs (New Development Bank's) financial capacities to meet the scale and urgency of development financing needs is crucial."
India is ready to collaborate with the development bank in sharing digital public infrastructure, and scaling up renewable energy adoption, for broader replication, Sitharaman said. "Continued focus on accountability, responsiveness, and stakeholder trust must remain a priority to ensure the Bank's long-term sustainability." End
Reported by Shubham Rana
Edited by Akul Nishant Akhoury
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