India to remain among fastest growing economies: Finance Minister
- MGMMTeam
- Jul 5, 2025
- 3 min read
India is poised to maintain its position as one of the world’s fastest-growing major economies, according to Finance Minister Nirmala Sitharaman. Speaking at the 10th Annual Meeting of the New Development Bank (NDB) in Rio de Janeiro, Sitharaman projected a stable growth trajectory for the Indian economy, asserting its resilience in the face of global uncertainty and its commitment to inclusive, technology-led development.
India’s Consistent Economic Momentum
The Finance Minister highlighted that India recorded a robust 6.5% GDP growth in FY 2024–25 and is on course to sustain the same pace in FY 2025–26. These figures reflect not just recovery from the pandemic, but the establishment of a durable growth framework built on macroeconomic stability, policy discipline, and accelerating investments in key sectors. Sitharaman noted that this momentum is being driven by increased manufacturing output, a buoyant services sector, and a resilient rural economy.
Global think tanks and multilateral agencies have also endorsed India’s economic performance, with the IMF and World Bank forecasting India to remain the fastest-growing major economy through the end of the decade. Amid slowing growth in China, recession fears in Europe, and moderate recovery in the United States, India’s performance is garnering international attention as a model of emerging market strength.
NDB’s Evolving Role and India’s Call for Reform
At the NDB platform, Sitharaman underscored the importance of reorienting the bank’s vision to match the changing development landscape of the Global South. She advocated for greater agility, efficiency, and use of emerging technologies to enhance project delivery and impact. India’s call for reform at the NDB comes at a time when developing countries are facing tight fiscal space and reduced access to affordable credit, exacerbated by global conflicts and supply chain disruptions.
She emphasized that while public funding remains foundational, it is insufficient on its own. The NDB must evolve into a catalyst for mobilizing private capital, particularly for large-scale infrastructure and social development projects. She also urged the bank to prioritize tailored financial solutions for women-led enterprises and small and medium businesses to promote inclusive growth.
India Offers its Own Success Models
Positioning India as both a beneficiary and a contributor to the development narrative, Sitharaman invited Global South nations to adopt India’s successful digital and green initiatives. She specifically pointed to India’s Digital Public Infrastructure (DPI)—such as the Aadhaar identity system, the Unified Payments Interface (UPI), and the Jan Dhan financial inclusion program—as examples of transformative, low-cost tools that could be replicated across developing economies.
India’s advancements in renewable energy were also presented as replicable models. The country has already crossed 220 GW of installed renewable energy capacity and is spearheading initiatives like the Green Hydrogen Mission and the issuance of sovereign green bonds. These programs, she argued, demonstrate how emerging economies can align climate commitments with development goals without compromising on growth.
Bridging the Sustainable Development Financing Gap
One of the central themes of Sitharaman’s speech was the urgent need to address the global financing gap for achieving the Sustainable Development Goals (SDGs). Citing an annual shortfall of $4.2 trillion in SDG-related funding, she stressed the need for a more equitable flow of capital towards the Global South. India’s position is that development financing must become more inclusive, transparent, and accessible—especially for countries that have shown economic discipline but lack access to large pools of global capital.
She called for international financial institutions and multilateral banks like the NDB to play a greater role in filling this gap by designing agile and context-specific financing instruments. Furthermore, Sitharaman advocated for stronger partnerships between public institutions, private investors, and civil society to ensure that the benefits of development reach the most vulnerable populations.
Reforms and Domestic Preparedness
Back home, India continues to push through structural reforms aimed at strengthening the financial sector, improving tax administration, and enhancing the ease of doing business. Sitharaman mentioned ongoing efforts to expand and deepen India’s financial markets through hubs like GIFT City, and continued refinements in the Goods and Services Tax (GST) system to promote economic efficiency. These reforms are integral to India's effort to remain investor-friendly and globally competitive.
Conclusion: India’s Leadership in a Changing Global Economy
India’s assertive participation at the NDB meeting signals its growing role not just as a beneficiary of development finance, but as a key architect of future economic models for the Global South. With strong economic fundamentals, digital innovation, and climate-forward strategies, India is building a comprehensive toolkit for sustainable growth—one that it is now ready to share with the world.
Finance Minister Sitharaman’s message was clear: India is not only on a steady growth path domestically, but is also prepared to lead global conversations on equity, resilience, and shared prosperity. In a time of fragmented global cooperation, India’s combination of pragmatic policy and developmental ambition stands out as a beacon for others to follow.
(Sources: Financial Express, Livemint, Moneycontrol)
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