India is sustaining growth as fastest growing economy for fourth year straight: FM Sitharaman

Finance minister Nirmala Sitharaman on Friday said India is sustaining its growth and has maintained its position as the world's fastest-growing economy for the fourth straight year.

Speaking at an event at the Indian Institute of Management, Lucknow, Sitharaman said India is no longer just a middle-class market where goods can be dumped, but a market that fosters innovation.

GDP growth

The statement came hours after India recorded a GDP growth rate of 7.4% for Q4 FY25 and an overall GDP growth rate of 6.5% for FY25. The finance minister said all sectors of the economy—services, manufacturing, and agriculture—had contributed immensely to India's growth in FY25.

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"India's industry as well as manufacturing activity have all been so good during quarter four (Q4), and quarter four's growth alone was 7.4%," said Sitharaman.

According to the data released by the National Statistics Office (NSO), the economy expanded 6.5% in FY25 against a 9.2% growth in FY24. According to official data, the economy grew 9.7% and 7.6%, respectively, in FY22 and FY23.

"India is sustaining this growth as the fastest growing economy, now for the fourth year continuously without a break, thanks to the work of our small, medium, and large industries," said the finance minister. These industries are ensuring that India's manufacturing and services capacities are intact, she said.

She said that while India's economic output recorded high growth rates after the covid pandemic, it continued to sustain this momentum in FY25, the fourth straight year that India was the fastest-growing economy in the world.

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Adoption of digital public infrastructure

India’s adoption of digital public infrastructure has positioned it as a benchmark across the globe, said Sitharaman. Many world leaders have lauded the adoption of Indian technology across its population, she said.

She added that the government was continuously working to reduce regulatory hurdles for businesses. She added that getting rid of corruption is integral to becoming a developed nation, as corruption affects everyone.

The FM also called for further investments in science and technology. She said the government had taken significant efforts to invest in futuristic sciences, such as kickstarting the National Quantum Mission (NQM), while simultaneously providing social welfare to citizens.

The NQM, launched in the FY21 budget, aimed to promote quantum technology and strengthen India's position in new sciences.

Sitharaman also said research in sectors such as oceanography, space, rare earth minerals, and weather forecasting would propel India's growth.

"Science and technology-led investments have always been a priority of this country," she said. 

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