FM Emphasizes Political Stability and Decisiveness as Crucial Factors for India's Economic Growth

08 Oct, 2023

FM Emphasizes Political Stability and Decisiveness as Crucial Factors for India's Economic Growth

On Thursday, Finance Minister Nirmala Sitharaman emphasized that India's economic growth depends on political stability, policy consistency, and decisiveness. She highlighted India's progress, moving from the 10th position in 2013-14 to becoming the fifth-largest economy and aspiring to be the third-largest in the coming years. However, she cautioned against taking this growth for granted, urging recognition of the efforts of entrepreneurs, farmers, and economically vulnerable sections of society.

Sitharaman stressed the importance of not assuming guaranteed growth, especially amid global economic uncertainties. She argued that political stability, policy consistency, and decisiveness are essential for sustained economic growth. She also mentioned that industries seek policy consistency to support economic activity and that governments must be forward-thinking and reform-ready to foster business growth.

Regarding India's inclusion in the JPMorgan bond index, Sitharaman noted that it could attract up to $23 billion in foreign capital flows, illustrating the significant impact of this inclusion.

It's worth mentioning that JPMorgan's India bond inclusion is scheduled to begin on June 28, 2024, and will take place over ten months, with incremental increases in its index weighting, eventually reaching a maximum weighting of 10 percent for India.