India sustaining status as fastest-growing economy for fourth consecutive year: FM Sitharaman

Finance Minister Nirmala Sitharaman

India continues to retain its position as the fastest-growing major economy for the fourth consecutive year, Union Finance Minister Nirmala Sitharaman said on May 30, after official data showed India’s gross domestic product (GDP) grew 6.5 percent in 2024–25. She cited the country’s economic resilience, innovation-led growth, and expanding technological prowess as key drivers.

India’s economy grew by 7.4 percent in the January–March quarter of FY25, the highest quarterly growth in a year, lifting full-year GDP growth to 6.5 percent, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI). The final quarter’s performance was driven by robust investment demand—particularly public capital expenditure—and a rise in private consumption.

Speaking at the 14th edition of the Lakshmipat Singhania – IIM Lucknow National Leadership Awards in New Delhi, Sitharaman said the economy’s momentum had stayed strong despite global volatility and scepticism.

“India is sustaining growth as the fastest growing economy for four years now,” she said, adding, “Over and above naysayers, we are proving to ourselves that India is able to excel in every field.”

Space tech

Emphasising the link between advanced technology and grassroots development, Sitharaman pointed to India’s achievements in space technology and their real-world applications. “India’s achievement in space technology is helping agriculture and the meteorological department,” she said, adding that investment in space research yields tangible benefits such as improved monsoon prediction.

“We will help people get homes, but we will also have to spend on space tech. It helps predict monsoons,” the Finance Minister said, signalling the government's continued emphasis on balancing welfare and technological investment.

Digital innovation

Sitharaman also highlighted India’s evolving digital ecosystem as a growth enabler. “India is a market where innovation is coming up. The Digital Public Infrastructure (DPI) stack is scaled up to the size of the Indian population,” she said, reiterating the role of fintech and tech-led service delivery in India’s economic model.

Calling for sustained regulatory simplification, she said, “Every year we should remove regulatory difficulties,” while emphasising the need to institutionalise “corruption-free governance” that filters down to the lowest levels of administration.