Union Finance Minister Nirmala Sitharaman emphasized the importance of transparent and cooperative engagement with states to bolster India’s economic framework. Speaking at the BS Manthan Summit, she highlighted the need for clarity, collaboration, and institutional dialogue to drive sustained economic growth.
Call for Honest State-Level Engagement
Sitharaman underscored the significance of constructive dialogue between the Centre and states, stating that economic matters should not be politicized. She pointed to the Goods and Services Tax (GST) Council as an example of how persistent engagement is required to develop a robust fiscal structure.
“There should be an honest engagement with the states. You think an institutional arrangement would get you the desired result. But even in setting up the GST Council, the efforts were intensive and continuous. The engagement with states must happen first,” she said.
Sitharaman also warned against misinformation on fiscal matters, particularly concerning tax devolution and debt.
“Debt is a burden on future generations. Any attempt to misinform is a disservice to the nation,” she cautioned.
India’s Growth Story and Economic Resilience
Discussing India’s growth trajectory, Sitharaman addressed concerns about the economy stabilizing after recent expansions. She rejected the notion that India’s growth story was plateauing, highlighting the country’s resilience amid global economic challenges.
“Against all the challenges globally, India is moving ahead with growth,” she affirmed.
Investment, Reform, and Corporate Sector Involvement
When asked about structural economic reforms, Sitharaman expressed confidence in existing policies but stressed the need for rapid implementation post-April 1.
“Not at this stage. Reform measures we announced have some way to go. We need to move quickly after the Income Tax Bill is approved,” she stated.
On private sector investments, she urged corporate leaders to take initiative, questioning their hesitance in capital expenditure.
“The answer has to be heard from the industry. Tell us why not if you are not investing. But why not answer?” she remarked, emphasizing the role of businesses in India’s economic revival.
Customs Tariff Rationalization and Manufacturing Push
Sitharaman described customs tariff adjustments as a continuous process aimed at bolstering domestic manufacturing.
“We want certain products coming into India because manufacturing depends on it… We will be enabling products coming into the country if it helps our manufacturing,” she explained.
Privatization, Deregulation, and Bureaucratic Reforms
The Finance Minister reiterated the government’s commitment to disinvestment and privatization, noting that core sectors have been open to private players since 2021 with minimal regulatory barriers.
She also outlined key deregulation efforts since 2019, including the removal of 1,600 outdated laws and the simplification of overlapping regulations.
“We wanted to clean it up so that everyone works as part of a larger wheel rather than spokes for themselves,” she said, stressing the importance of regulatory coordination, particularly in the financial sector.
Sitharaman’s remarks at the BS Manthan Summit reinforced the need for collaboration beyond political divisions to drive India’s economic success. From fiscal management and corporate investments to customs reform and regulatory clarity, she urged policymakers and industry leaders to work collectively toward long-term economic stability and growth.
