'Budget or aside, reforms will continue': Highlights from FM Nirmala Sitharaman’s post-Budget interview

The total value of gold held by RBI stood at Rs 360,884 crore as on December 26.

• Sitharaman defends Budget, emphasizing reforms and long-term growth for India.
• Customs overhaul, rationalized capital gains, private sector capex support
• Budget highlights AI, women's initiatives, and regional allocations.

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In a post-Budget interview with Network18 Group Editor-in-Chief Rahul Joshi, Finance Minister Nirmala Sitharaman spoke about the philosophy behind the Budget, the state of the economy, tax changes, private investment, global uncertainties, AI, and sharp political responses -- including a pointed message for Rahul Gandhi. She underlined stability, continuity of reforms, and confidence in India’s long-term growth path while rejecting claims that the Budget lacks vision.

Here are the highlights from her interview:

Budget philosophy and reforms

• Sitharaman said she understands why “certain perspectives have come out” but stressed that the exercise was anchored in planning for this year, the next five years, and the Viksit Bharat vision.
• “It is not just tax proposals that will take us to the 2047 goals.”
• “Saying that this vision has no vision is not understanding the budget.”
• “Budget or aside the budget, reforms will continue.”
• She added that India must “extend the red carpet and remove the red tape at the same time for ease of doing business,” while keeping stability as the central anchor.

Economy, growth, and inflation

• “Domain experts have said Indian economy’s fundamentals are absolutely strong.”
• “It is the stability of Indian economy that I want to underline.”
• On prices and growth, she said inflation is not a major worry and that India can sustain GDP growth over the long term. She also noted that attracting global funds is crucial, as more inflows into India remain “one of the big factors.”

Customs, trade, and manufacturing

She described the “complete customs overhaul” as a signature feature of the Budget. On free trade agreements, she said work is progressing, and multiple free trade agreements (FTAs) are being signed, but added, “Not for me to speculate” on an Indo-US deal.

Markets, STT, and capital gains

On securities transaction tax: “It is not for revenue considerations. It is not on all STTs. It is only on F&Os. It is only for speculators. 90 per cent of people in F&O lost money. We are not touching the markets.”

On capital gains: “Rationalised capital gains taxes for all asset classes. It wasn’t done for a revenue consideration. The stable approach to tax rates has always guided us.”

Rupee, gold, and bond yields

• “It is predicated in the context of how the economy is.”
• “If the economy is fragile and the rupee is weak, then it creates a difficult situation.”
• “Uncertainties in the world are prompting people to fall back on time-proven assets. That is driving demand for gold.”
• On bond yields and prices, she described the situation as “very evolving.”

Private sector capex and banking

• “I see some green shoots. I see the situation is improving. I see the reason to believe that private capex is growing.”
• On consolidation of Public Section Undertaking (PSU) banks, she said it would be for the committee to recommend, and that she would not pre-empt its views.

China, data centres, and GCCs

• On China, she said India and China together contribute significantly to global output, and certain sectors need greater stimulus with sustained productivity gains.
• On data centres and global capability centres: global companies are setting up GCCs, paying taxes, and even Indian majors such as TCS can benefit.

AI and productivity

• “Government’s interest is to increase productivity.”
• “MSMEs will benefit from AI.”
• “AI is enabling to us to track the money trail.”
• She said institutions of excellence have been set up for AI in agriculture and health, and that AI is being used in crop tech and other sectors.

Political responses: Rahul Gandhi

• “He is the leader of the opposition. But most often I think he shoots from his hip.”
• “He doesn’t use good foundational data to make his points.”
• “He speaks without any basis. He speaks out of thin air.”
• “India deserves a better opposition.”

Tamil Nadu, DMK, and regional allocations

• Responding to comments by MK Stalin, she said: “Sad commentary.”
• She cited allocations for high-speed and super-fast trains, coconut farmers, rare earth corridors, MGNREGA, and semiconductor and electronics manufacturing, asking whether these do not benefit Tamil Nadu and Kerala. She alleged the Tamil Nadu ruling party suffers from a “completely separatist mindset.”

Vijay and opposition politics in Tamil Nadu

• On Vijay: “If he is a threat to the ruling DMK, I shouldn’t be worried.”
• “DMK is feeling insecure because of the NDA is coming up.”
• She added that Congress in Tamil Nadu is a divided house.

Aam Aadmi and women-centric measures

• “Aam Aadmi has got a lot in the budget.”
• She pointed to the success of Lakhpati Didis, support for women in the marine ecosystem, AI training in rural areas, backing for women in STEM education, and the announcement of one hostel for women in every district.