Asheville: India has shown that it can adjust to changes in the global economy without allowing its growth to be derailed, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman has said while acknowledging the country’s dependence on imported energy and fertilisers.
In an exclusive interview with IANS on the sidelines of the G20 Finance Ministers’ meeting here, FM Sitharaman described India as a vibrant and responsive economy capable of managing external challenges.
“I’ll start with the fact that we have challenges. There is just no doubt,” she said.
India is among the world’s large importers of crude oil and petroleum products. It also imports several fertilisers and their inputs despite having some domestic production capacity, the Finance Minister said.
“We are one of the large importers of crude and petroleum products. We are large importers of various kinds of fertilisers — urea, ammonia, DAP,” she said.
“We have certain production capacity within the country, but despite all that, we are importers,” FM Sitharaman told IANS.
The Finance Minister said India’s economic performance demonstrated its ability to respond to developments overseas and protect its growth momentum.
“All these are very clear indications of a vibrant economy, an economy which is receptive to the changes globally and adjusts itself in such a way that our growth does not get affected,” she said.
FM Sitharaman said the Reserve Bank of India also periodically issues its assessment of the economy, with the indicators moving in a positive direction.
“Yes, the challenges are there, and we will work as a government to position India in an advantageous way each time when there is a challenge,” she said.
India recorded growth of 7.8 per cent in the first quarter of the 2026-27 financial year. The Finance Minister said the figure was significant because it had been achieved amid persistent external pressures.
“Despite these global challenges, if the Indian economy is still growing at 7.8 per cent in the first quarter of this financial year, 2026-2027, it is heartening that the people’s hard work is bearing fruit,” she said.
The expansion was spread across sectors rather than being confined to a single area, FM Sitharaman said.
“The GDP is growing in every sector. Manufacturing has grown at 9.2 per cent. The financial sector and the professional services sector are growing at 12.1 per cent,” she said.
India’s foreign exchange reserves stood at about $700 billion, according to the Finance Minister.
“These are not ordinary numbers,” she said.
FM Sitharaman credited Indian citizens, economic reforms and the expansion of digital infrastructure for strengthening the economy.
She said digital payment systems had helped small, micro and medium-sized businesses gain access to international markets.
“The way in which digitalisation has helped small, micro, medium businesses to be able to access the global markets because of the deep penetration of the UPI, the NPCI, the QR codes and everything else, the Indian economy’s robustness has come out,” she said.
The Finance Minister also credited state governments for supporting measures to make it easier to conduct business. More than 1,000 laws had been removed and about 40,000 regulations simplified, she said.
The government was continuing its engagement with industry, businesses and trade while pursuing bilateral trade agreements and investor protection agreements. FM Sitharaman said foreign deposits and investments by Indians overseas also reflected confidence in the country’s banking system and macroeconomic indicators.
FM Sitharaman is in Asheville for the G20 Finance Ministers’ meeting. She said India supported the US presidency’s focus on growth, global imbalances and financial literacy and wanted “fair, open discussions” on those issues.
The Finance Minister also held bilateral meetings with the United States, Poland, Qatar, South Korea and Russia. She is scheduled to travel to New York after the G20 gathering for meetings with investors interested in India.
(IANS)
