Finance Minister Nirmala Sitharaman on Sunday laid out the government's economic roadmap, defended its policy approach and urged India Inc. to step up investments, saying the country remains resilient despite geopolitical tensions and climate-related risks.
Speaking at the NDTV Profit Business Leadership Awards in Mumbai, Sitharaman highlighted India's economic momentum, deregulation drive, infrastructure expansion and investment in young people, while later addressing student protests, artificial intelligence and inflation.
Here are the key takeaways from the finance minister's remarks:
India's Growth Remains Broad-Based
Sitharaman said a range of high-frequency indicators continues to signal strength in the economy despite global headwinds.
"Orders, GST collections, e-way bill generation, electricity demand, digital payments, vehicle and tractor sales... all of them remain healthy. They point to sustained growth, sustained strength also in consumption, investment, manufacturing, and formal economic activity," she said.
She credited India's performance to its people, saying the government's role is to create an enabling ecosystem.
Regulation Should Be A 'Guardrail, Not A Tollgate'
Highlighting the Centre's deregulation push, Sitharaman said the government has simplified business processes by extending licence validity, reducing physical inspections and decriminalising routine compliance lapses.
"Our conviction is simple. Regulation should be a guardrail, not a tollgate. Deregulation for us is a habit we intend to keep," she said.
Infrastructure Has Changed India's Competitive Edge
The finance minister said investments in highways, airports, ports, freight corridors and the PM Gati Shakti initiative have fundamentally improved India's business environment.
"There was a time when Indian enterprise competed despite India's infrastructure. Today, increasingly, it competes with confidence because of it," she said.
Trade Deals Creating New Opportunities
According to Sitharaman, India's expanding trade partnerships are opening markets for MSMEs, farmers, garment exporters, leather and handicraft businesses, besides creating opportunities for students and skilled professionals abroad.
She said the country's external engagements are being pursued with "openness, balance and the national priority of an Atmanirbhar Bharat."
Stability Is About Absorbing Shocks
Describing macroeconomic stability as the foundation of growth, Sitharaman said India's fiscal discipline has continued despite multiple external disruptions.
"Stability is not the absence of shock. It is the capacity to absorb them," she said.
She added that capital expenditure has remained a priority while the banking system remains well-capitalised and credit growth continues to support industry.
AI Should Strengthen Humans, Not Replace Them
The finance minister said India wants to ensure the benefits of artificial intelligence reach beyond major cities.
Under the IndiaAI Mission, AI laboratories are being set up across ITIs and polytechnics in Tier-II and Tier-III cities.
"AI should enhance human capability, not replace human judgment. Humans must remain in the loop," Sitharaman said.
Government Bets Big On Youth
Sitharaman said the government's policies are increasingly shaped by the aspirations of young Indians.
She cited initiatives including:
Rs 1 lakh crore under the PM Viksit Bharat Rozgar Yojana for employment generation.
More than 12 lakh appointment letters through Rozgar Melas.
Over 1.6 crore youth trained under PM Kaushal Vikas Yojana.
Modernisation of 1,000 ITIs under PM SETU.
AI labs across Tier-II and Tier-III cities.
PM Internship Scheme linking graduates with India's top 500 companies.
Expansion of Khelo India and the National Sports Policy.
She also revealed that the Budget announcement for the AVGC (Animation, Visual Effects, Gaming and Comics) sector originated from a suggestion made by a college student through the MyGov platform.
El Niño, Water Stress Add To Inflation Risks
In her conversation with NDTV CEO and Editor-in-Chief Rahul Kanwal, Sitharaman said inflation risks are no longer driven only by global events.
She pointed to the Israel-West Asia conflict, supply chain disruptions and fertiliser imports, but said climate conditions are emerging as an equally important concern.
"I would have said inflation is getting imported because of uncertainties in the Middle East... But also this year there is an El Niño factor," she said.
Uneven rainfall, shrinking water availability in catchment areas and stress on irrigation and agriculture could also contribute to inflationary pressures, she added.
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Budget Buffers In Place Despite Global Uncertainty
The finance minister said she does not see the need to revise the Budget estimates despite geopolitical risks.
According to Sitharaman, adequate buffers have been created to deal with higher crude prices, insurance costs for shipping, fertiliser subsidies and other external shocks.
"At this stage I don't think I'll look at my Budget numbers for re-adjusting," she said.
Message To India Inc.: Invest More, Engage More
Addressing corporate India, Sitharaman said private investment has begun picking up, particularly in strategic sectors linked to self-reliance.
"Industry has started investing. The numbers are improving... I would only invite for greater engagement with the government," she said.
Student Protests Are Part Of Democracy
Asked by Rahul Kanwal about recent student protests, Sitharaman said every generation has the right to express itself.
"Every generation, when young, joins protests," she said.
She added that governments must stay connected with public sentiment and respond responsibly.
"We have to keep our ears closer to the ground so that we hear what's going on."
Referring to the examination paper leak controversy, Sitharaman said the government's immediate priority was ensuring students did not lose an academic year through timely re-examinations, while action was simultaneously taken against those responsible.
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