More Stories

Informist, Tuesday, Apr. 22, 2025

 

NEW DELHI – In order to sustain India's growth momentum over the next two decades, Finance Minister Nirmala Sitharaman called for fresh approach grounded in bold reforms, stronger domestic capacities, renewed institutional partnership and adaptive strategies suited for the evolving global landscape. "The global order is changing. That poses challenges but also opportunities. We must be prepared to tackle the former while seizing the latter," she said in her address at the Hoover Institution in Stanford University in the US. 

 

Her comments on India's growth comes amid the growing concerns over a potential growth slowdown in the wake of escalating global trade tension after reciprocal tariffs imposed by the US. The Reserve Bank of India has cut its GDP growth projection for 2025-26 (Apr-Mar) to 6.5% from 6.7%. The RBI's GDP growth projection for FY26 is within the 6.3-6.8% range projected by the finance ministry in the Economic Survey for FY25.

 

This also comes when India's GDP growth was recovering after an underwhelming performance in the first half of FY25. The GDP growth had slowed down to 6.0% in Apr-Sept 2024, from 8.2% a year ago. India's GDP is expected to have grown 6.5% in FY25, according to the second advance estimates given by the statistics ministry. 

 

Sitharaman said that the manufacturing sector will be a "key foundation" in boosting growth and also for integrating the local markets with global value chain. "Scaling of manufacturing sector is important for increasing workforce, build competitiveness, and global supply chain," she said. "Domestically, growth, jobs, sustainability and inclusion are not competing goals but are interdependant objectives that must be pursued harmoniously," she added.

 

On the external front, Sitharaman said that while there are risks from the tariff war, India's economic stability has given it the confidence to be one of the first nations to initiate a trade dialogue with the US. "India's top trading partner is the US. That importance is not lost in today's government," she said. 

 

India and the US had agreed on a multi-sectoral Bilateral Trade Agreement during Modi's visit to Washington, D.C. in February, a trade deal that can help avoid the reciprocal tariffs announced by US President Donald Trump on Indian goods.

 

There is a significant apprehension over the proposed US tariffs as the US has 19% share in total outbound shipments in FY25. The US, which has raised concerns over the widening trade deficit with partner nations, and in an attempt to boost local manufacturing, announced sweeping tariffs on Apr. 2, including 26% on India. These tariffs were later suspended for 90 days till Jul. 9. With the US, India had a merchandise trade surplus of $41.18 billion in FY25.

 

The finance minister also said that with the official visits and meetings of top ministers in both New Delhi and Washington, it is clear that the negotiating partners are "productive" and "engaging". This, she said, made her hopeful that the first tranche of the trade deal will be launched by fall.  End

 

US$1 = INR 85.13

 

Reported by Priyasmita Dutta

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.