India has maintained strong economic momentum despite persistent global uncertainty, with Union Finance Minister Nirmala Sitharaman highlighting the country’s 7.8% GDP growth in the first quarter of FY2026-27 as evidence of the economy’s resilience.
Addressing investors in New York on Wednesday, Sitharaman said India continues to be the fastest-growing major economy in the world, even as economies globally navigate geopolitical disruptions, changing trade conditions and broader economic uncertainty.
The Finance Minister was speaking at a high-level business roundtable organised by the Consulate General of India in New York in association with Bank of America. She travelled to New York after participating in the G20 Finance Ministers and Central Bank Governors meeting in Asheville, North Carolina.
Reforms remain central to India’s growth strategy
Sitharaman told investors that India’s economic expansion has been supported by a sustained programme of structural reforms aimed at improving regulatory certainty and creating a more business-friendly environment.
She pointed to measures including the Insolvency and Bankruptcy Code (IBC), which she said have contributed to greater regulatory clarity while helping simplify compliance and reduce administrative paperwork.
According to the Finance Minister, improving the ease of doing business has remained a key government priority for more than a decade. The broader reform agenda is intended to make it easier for businesses to operate, invest and expand in India while strengthening the country’s attractiveness as an investment destination.
The government is seeking to combine these reforms with continued infrastructure development and investment in productive capacity, creating conditions that can support longer-term economic growth.
Infrastructure, AI and data centres among key priorities
Sitharaman identified several areas that could play an important role in sustaining India’s growth momentum, including continued creation of capital assets and infrastructure investment.
The aviation sector was highlighted as one area where infrastructure development remains important. At the same time, the government is working to strengthen India’s investment ecosystem and encourage development in emerging technology sectors.
Artificial intelligence and data centres are among the areas receiving increased attention as India seeks to build capacity in the digital economy. Sitharaman also highlighted efforts to expand India’s network of global capability centres (GCCs), which have become an important part of the country’s services and technology ecosystem.
The government is also focusing on ensuring sufficient access to credit for micro, small and medium enterprises (MSMEs). Alongside credit availability, reducing non-performing assets in the banking system remains an important objective.
Sitharaman said these measures together are creating a more supportive environment for banks and businesses, allowing them to strengthen operations, invest and expand.
Fiscal discipline remains a key message for investors
While highlighting India’s strong growth, Sitharaman also sought to reassure global investors that economic expansion continues to be accompanied by fiscal prudence.
She said India has maintained its commitment to fiscal discipline over the past several years, including through the economic challenges that followed the Covid-19 pandemic and amid continuing global disruptions.
The government is attempting to balance the need for public investment and economic expansion with responsible fiscal management, a combination that New Delhi views as important for maintaining investor confidence.
Sitharaman also pointed to greater competition among governments at both the central and state levels to attract investment. According to her, India’s investment climate has improved as governments have become increasingly proactive in competing for businesses and projects.
Stronger India-US economic ties
India’s growth trajectory could create additional opportunities for deeper economic cooperation with the United States, according to India’s Ambassador to the US Vinay Kwatra, who delivered the welcome address at the roundtable.
Kwatra described India’s latest GDP performance as a reflection of the resilience of the Indian economy. He said the two countries could benefit from India’s rapid economic expansion by strengthening the connection between trade and investment.
Greater integration between the two economies could provide opportunities across sectors as India expands infrastructure, manufacturing, technology and services capacity.
For India, attracting international capital remains an important component of its broader economic strategy. Strong domestic growth combined with increased foreign investment could help accelerate the development of emerging sectors and support job creation and productive capacity.
Growth linked to Viksit Bharat 2047 vision
Sitharaman positioned the latest growth figures within the government’s longer-term development agenda rather than treating the 7.8% expansion as an isolated economic indicator.
The reforms, infrastructure investment, efforts to improve the investment environment and focus on technologies such as AI and data centres are being presented as components of India’s wider ambition to become a Viksit Bharat by 2047.
The strong first-quarter growth figure therefore comes at an important time for the Indian economy. With global conditions remaining uncertain, the government is seeking to demonstrate that India can maintain high growth while simultaneously pursuing structural reforms, strengthening infrastructure, supporting businesses and maintaining fiscal discipline.
The combination of domestic economic momentum and efforts to deepen international trade and investment relationships could remain central to India’s strategy as it seeks to sustain growth over the coming years.
Disclaimer: This report has been editorially prepared using publicly available information and official statements. Readers are advised to refer to official announcements for further details.
Author
About the Author
