Daijiworld Media Network – New Delhi

New Delhi, Mar 29: Newly-appointed Finance Secretary Ajay Seth has underscored the need for India's economic growth to be driven not just by taxpayers and borrowings but also by ratepayers—those who pay for essential public utilities like water, electricity, and transportation.

Speaking at an event in the national capital, Seth highlighted that India's savings pool is finite, and its growth has so far relied on tax revenue and borrowing from future generations. However, he stressed that ratepayers must play a more significant role in financing the country's progress.

"The savings pool in this country is limited. We generate income and either deploy or invest it. But who is going to finance the growth? So far, it has been taxpayers and the next generation (through borrowings). The role of ratepayers has remained muted, but they need to step up alongside the other two," Seth remarked.

Speaking at the Skoch Group event, the Finance Secretary also reinforced the importance of exports as a key pillar of India's economic expansion. He referenced the four engines of growth outlined in the Union Budget by Finance Minister Nirmala Sitharaman—agriculture, MSMEs & manufacturing, investments, and exports—stating that these sectors are crucial for long-term economic resilience.

Seth further pointed out the challenges posed by the current global geopolitical and economic climate, emphasizing that uncertainty is unlikely to ease in the near future.

"Economic difficulties faced by other countries are increasingly shaping their geopolitical stance. Nations seem to be shifting from cooperation to competition, and these uncertainties may persist for the medium term," he cautioned.

He also noted that even the United States, the world’s largest economy, is undergoing a strategic economic reorientation, acknowledging the need for a different approach in the evolving global landscape.

Seth, a 1987-batch IAS officer from the Karnataka cadre, was recently appointed as Finance Secretary and also holds additional charge as Revenue Secretary. His vision for a more balanced approach to economic funding underscores the need for shared responsibility among all economic stakeholders to ensure sustainable growth.