Daijiworld Media Network – New Delhi

New Delhi, Jul 27: Finance Minister Nirmala Sitharaman on Saturday emphasised that sustaining economic growth remains the government's top priority amid global uncertainties. She noted that an incremental rise in public capital expenditure has become a key driver in pushing India's economic development forward.

Speaking at the launch of the book 'A World in Flux: India's Economic Priorities', Sitharaman underlined the importance of staying relevant in a shifting global landscape. "Growth is the topmost priority, and it naturally overlaps with job creation and securing India’s leadership position among nations," she said.

The remarks come at a time when the Indian economy is estimated to have grown by 6.5% in FY25—the slowest pace in four years, compared to 9.2% in FY24. The Economic Survey has projected GDP growth for FY26 in the range of 6.3% to 6.8%, while the Reserve Bank of India has revised its forecast downward to 6.5%.

Sitharaman said fiscal discipline remains crucial, but public investment will continue to be scaled up under Prime Minister Narendra Modi’s directive. “It has been the PM’s clear instruction that capital expenditure must grow significantly. I believe it is one of the primary drivers of sustained growth,” she added.

Highlighting the role of foreign investment, she said the government would further refine FDI policies to ensure a steady inflow of investments. She also welcomed the healthy competition among states to attract investors, calling it a “positive trend” for the economy.

On the trade front, Sitharaman stated that bilateral agreements are being prioritised over multilateral frameworks. "India has signed major deals with Australia, the UAE, and the UK in recent years. Talks are progressing well with the US and the European Union,” she informed.

Addressing Indo-China relations, the finance minister acknowledged some improvement following the recent visit of External Affairs Minister S Jaishankar. “There’s a beginning, with some windows of interaction opening up. But a cautious approach must be maintained. We need more access and sustained dialogue,” she added.

Sitharaman concluded by stressing that redefining the voice of the Global South and addressing domestic economic aspirations within fiscal limits will remain at the heart of the government’s broader strategy.