New Delhi: Finance minister Nirmala Sitharaman Thursday said India’s macroeconomic fundamentals are stronger than ever and the economy has successfully navigated global headwinds to be on a high-growth trajectory, improving potential GDP growth to 7%.“Amid a global environment in which many emerging markets struggled, India stood out for its effective management of inflation without compromising growth. Our govt’s proactive supply-side management has driven inflation down to historic lows,” she said in a series of social media posts. Inflation has moderated to 1.3% as food prices have fallen, also creating headroom for higher consumption spending amid a cut in income tax and GST last year.The survey noted that consumption has soared, while investment has held steady, helping sustain the growth momentum. The Indian economy is estimated to grow 7.4% this year and the survey has projected 6.8-7.2% growth during the next financial year.Citing numbers from the 687-page document she reasserted govt’s commitment to fiscal consolidation without compromising on growth. Ahead of her ninth consecutive budget to be presented on Sunday, Sitharaman said the fiscal deficit target of 4.4% of GDP “is well on track”, reassuring market players amid a slowdown in tax collections.She also re emphasised the focus on deregulation, which she had flagged in her last budget. “The Economic Survey mentions that a progression from ‘swadeshi’ to ‘strategic resilience’ to ‘strategic indispensability’ will ensure the world moves from ‘thinking about buying Indian’ to ‘buying Indian without thinking’. It is in this context that our govt has been focusing on deregulation and strengthening the manufacturing sector in the country through various measures.”The finance minister also said that the efforts to strengthen human capital have also helped sustain India’s growth, which can be seen from the gains made in education and health outcomes.“The survey underscores that these investments are converting India’s demographic dividend into a durable development dividend driven by healthier, quality-educated citizens,” she said.The budget comes at a time when the economy is resilient but global challenges have increased, which may prompt govt to unleash deep reform measures.
