Union Finance Minister Nirmala Sitharaman stated that India’s 7.8 per cent economic growth in the first quarter of the current financial year is a result of the dedication and efforts of the country’s industries, small and medium enterprises (MSMEs), and the broader population. She made these comments while addressing the 8th International Tax Conference hosted by the International Tax Research and Analysis Foundation (ITRAF) in Bengaluru on September 16.

Sitharaman highlighted that the 7.8 per cent growth rate should not be dismissed as coincidental. According to her, the credit belongs to the people of India, especially those in the hardworking fields of industry and small businesses. “This number is not random,” she asserted, emphasising the collective effort that has contributed to this achievement.

While discussing the government’s role, she acknowledged that supportive policies serve as essential frameworks that enable businesses to thrive. She equated these policies to the tracks upon which a train travels, suggesting that they guide and support economic development.

Call for International Engagement by Indian Industry

The Finance Minister urged Indian industries to continue collaborating with their international counterparts. She suggested that understanding global challenges is crucial for navigating the increasingly complex economic landscape worldwide. “Industry should engage with counterparts abroad,” she advised, recognising the difficulties faced by businesses in various regions.

Sitharaman also expressed her concern regarding ongoing negative perceptions about the Indian economy. While she acknowledged that certain areas require improvement, she insisted that pessimistic commentaries suggesting stagnation are misguided. “There are aspects where India needs enhancement; yet, the unrelenting negative discourse is troubling,” she remarked.

She pointed out that the results of economic activities are reflected in the robust Goods and Services Tax (GST) collections, indicating the positive impact of the people’s hard work on the economy. Despite previous rate reductions and reforms, GST collections demonstrate consistent growth, reinforcing the overall economic performance.

Policy Certainty as a Strengthening Factor

Sitharaman highlighted that political stability and tax policy certainty have positioned India favourably to confront international challenges. She noted that the present government, having been re-elected for a third term, brings a level of predictability which is beneficial for economic growth. “Such certainty, combined with tax policies, allows India to navigate global hurdles more effectively,” she stated.

Official reports indicate that India’s real Gross Domestic Product (GDP) recorded a growth of 7.8 per cent year-on-year for the April to June quarter of the 2026-27 financial year. This marks an increase from the previous year’s growth of 6.9 per cent during the same quarter. The real Gross Value Added (GVA) also grew by 8.2 per cent, while nominal GDP expanded by 10.3 per cent.

In conclusion, the Finance Minister’s remarks reflect a strong belief in the potential of India’s economy, driven by the contributions of individuals and enterprises. With an emphasis on policy consistency and international engagement, the government aims to sustain this growth trajectory and address the challenges head-on.

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