Union Finance Minister Nirmala Sitharaman, during an interaction with the Indian diaspora in San Francisco, underscored India’s resilience, future growth plans, and the government’s commitment to fiscal discipline.
As she commenced her five-day US Visit, FM Sitharaman said that she is hopeful of a trade deal with the US in coming months. India’s team will be led by new chief trade negotiator Rajesh Agrawal, will hold deliberations with the US counterparts to discuss the pending concerns.
“The keenness with which we are engaging with the US administration, even as I talk, I think the Vice President of the United States of America is in India, he will be engaging with the Prime Minister hopefully this evening or tomorrow. In between all this, the Assistant USTR had visited India to see the progress or to engage with the negotiating team who is dealing with the tariff-related negotiation and the bilateral trade agreement that we want to sign,” Sitharaman said.
Both, the US and India, have finalised the terms of reference for 19 chapters of the proposed BTA.
“In fact, the progress of the agreement or the trade agreement that we are working on, at least a first tranche is something which we hope to conclude positively by the fall this year,” she added.
Read more: India-US proposed trade pact’s terms of reference includes about 19 chapters: Sources
FM Sitharaman also highlighted international recognition of India’s role in the global economy and how “India can be the engine driving global trade”.
“When we say that India is the fastest growing economy and when the International Monetary Fund (IMF) or the World Bank recognises that, because of the growth potential, India, China, many other such countries, can be the engine to pull the world trade, which is in the negative or just about positive zone. They recognise the potential that exists in India,” Sitharaman said.
She added that India’s continued growth could help shift global economic trends currently burdened by slow trade and high inflation.
“And by us growing with that potential, we will probably be able to lift that trend which is seen globally because of the various uncertainties – keeping growth low, keeping trade low but keeping inflation high in some places. And as a result in some places, people think ‘Oh, is there going to be a recession?’,” Sitharaman said.
“But in this environment, if India is recognised for its potential, the economic strength that it has. If you, the high-end achievers in this area, see the potential to partner with India, individually, or commercially, corporation to corporation – you benefit, Unites States of America benefits, India benefits, and Indian businesses benefit, and together we are going to have to lift the global trade and growth. I think that’s a very big contribution that Indian diaspora can do. I appeal to you to take more interest and partner with India in the areas that you choose, and help our two countries to grow and prosper,” Sitharaman said.
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FM Sitharaman is on an official visit to the United States and Peru from April 20 to 30.
In the US, her engagements include delivering a keynote address at Stanford University, interacting with CEOs in San Francisco, and participating in IMF and World Bank meetings, along with the G20 Finance Ministers and Central Bank Governors meeting in Washington DC, the Finance Ministry said in a statement.
India’s fiscal deficit will be below 4.5% by FY26
Speaking on India’s progress since the pandemic, Sitharaman reaffirmed the country’s roadmap.
“It was during Covid when because of the lockdown, the fiscal deficit rocketed up. And immediately after that, we came up in 2021, with a clear signal as to how we wanted to manage our fiscal deficit,” she said.
“We gave ourselves year-by-year targets and said by the financial year 2026, our fiscal deficit will come below 4.5% by 2026. And that is what we have been following, without fail, each year,” Sitharaman said.
India’s fiscal deficit, which had peaked at over 9% in 2020-21, has since seen a steady decline. The revised estimate for 2024-25 stands at 4.8%, down from 5.6 in 2023-24 and 6.4% in 2022-23.
Read more: India’s growth story remains robust with reforms and innovation at core: FM Sitharaman
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