Union Finance Minister Nirmala Sitharaman has said that India’s economic resilience has been deliberately strengthened over the past decade through fiscal discipline, infrastructure development, banking reforms, last-mile delivery and continuous policy reforms.
Speaking at the 5th Kautilya Economic Conclave on Saturday, Sitharaman said economic resilience means being able to withstand major shocks without losing the country’s growth momentum while retaining enough policy flexibility to respond to future challenges.
Resilience Built Through Fiscal Discipline and Reforms
Sitharaman said one of the clearest signs of economic resilience can be seen in the crises that India managed to avoid. She pointed to the absence of an inflation spiral, fuel shortages, banking-sector stress and a forced fiscal correction as examples of the country’s ability to manage economic disruptions.
Referring to Kautilya’s Arthashastra, the Finance Minister quoted the principle “koshapurvah sarva-arambhah”, which means that every undertaking depends first on the treasury. She said strong public finances give the government greater freedom to respond when economic conditions become difficult.
According to Sitharaman, India has managed to navigate the shocks of the past four years while maintaining its economic fundamentals.
GDP Growth, Inflation and Forex Reserves
Highlighting the country’s recent economic indicators, Sitharaman cited real GDP growth of 7.8% in the first quarter of FY27. Consumer Price Index inflation stood at 4.82% in August 2026.
She also pointed to a current account deficit of 0.5% of GDP in the first quarter and foreign exchange reserves of around USD 766 billion.
These indicators, she said, reflect the strength of the economic foundations built over the years.
Jan Dhan, DBT and Financial Inclusion
The Finance Minister also outlined several initiatives introduced since 2014 that she said have contributed to India’s economic resilience.
She highlighted the Jan Dhan-Aadhaar-Mobile (JAM) framework and Direct Benefit Transfer (DBT), along with programmes such as PM Awas Yojana, Swachh Bharat, Ujjwala and Ayushman Bharat. Food security measures were also included among the initiatives supporting the broader economic framework.
Sitharaman said more than 52 crore collateral-free loans have been sanctioned under the PM MUDRA Yojana. She also highlighted reforms in the banking sector and said non-food credit grew 18.8% in the year through August 2026.
Infrastructure Spending Remains a Key Focus
Infrastructure development was another major area highlighted by the Finance Minister. She said the government has budgeted ₹12.22 lakh crore for capital expenditure in FY27.
The continued focus on infrastructure, banking reforms, financial inclusion and public finances forms part of the broader strategy aimed at strengthening India’s ability to deal with future economic and global disruptions.
Disclaimer
The information presented in this article is based on the details provided in the source material and is intended for general informational purposes only. Economic data, government policies and financial indicators may change over time. Readers should refer to official government releases and authoritative sources for the latest information.