India remains fastest-growing major economy with 7.8% Q1 growth: Sitharaman to investors in US

Finance Minister Nirmala Sitharaman has said India continued to be the world’s fastest-growing major economy after posting a “remarkable growth” of 7.8% in the first quarter of FY27, despite persistent global disruptions.

Sitharaman made the remarks during a high-level business roundtable with investors in New York, organised by the Consulate General of India in association with Bank of America.

Addressing investors, the finance minister said that “despite global disruptions and against all odds, India continues to be the fastest-growing major economy in the world, recording a remarkable growth of 7.8 per cent in Q1 of FY 2026-27,” according to a Finance Ministry post on X.

Sitharaman arrived in New York after attending the G20 finance ministers’ meeting in Asheville, North Carolina.

Highlighting the government's reform agenda, Sitharaman said India has worked towards strengthening regulatory certainty through a series of policy measures, including the Insolvency and Bankruptcy Code.

“Such reforms have contributed to ensuring ease of compliance and reducing paperwork, which has remained a prime focus of the Government of India since it assumed office over a decade ago,” the Finance Ministry said.

Govt’s polic focus supports the industry

The government’s policy focus, she said, has included the creation of capital assets and sustained infrastructure support for industry, particularly in aviation. Other priority areas include building a favourable investment environment, promoting artificial intelligence and data centres, supporting global capability centres, improving credit access for MSMEs and reducing banks’ non-performing assets.

According to Sitharaman, these initiatives have helped create a more supportive ecosystem for businesses and financial institutions to expand and strengthen their operations.

The finance minister also underlined India’s commitment to fiscal discipline, saying the government has remained on the path of fiscal prudence despite repeated global economic challenges since the outbreak of the Covid-19 pandemic.

She pointed to the improving investment climate in the country, with both the Centre and state governments becoming increasingly competitive in attracting investments and facilitating business activity.

These efforts form part of India’s broader strategy to achieve the goal of Viksit Bharat 2047, she said.

Earlier, India’s Ambassador to the US, Vinay Kwatra, said the first-quarter GDP figures reflected the resilience of the Indian economy. He added that India and the US could benefit from India’s rapid economic expansion by building stronger trade and investment ties, according to the Finance Ministry.